Encore Wire (WIRE) 10-K 26 Feb 18 2017 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2017	Feb. 22, 2018	Jun. 30, 2017
Document And Entity Information [Abstract]
Entity Registrant Name	ENCORE WIRE CORP
Entity Trading Symbol	WIRE
Entity Central Index Key	850,460
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-K
Document Period End Date	Dec. 31, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus (i.e. Q1,Q2,Q3,FY)	FY
Amendment Flag	false
Entity Common Stock, Shares Outstanding		20,835,748
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Public Float			$ 754,677,665

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 123,362	$ 95,753
Accounts receivable, net of allowance of $2,028 and $2,036	228,885	184,876
Inventories	92,365	93,274
Prepaid expenses and other	2,372	2,479
Total current assets	446,984	376,382
Property, plant and equipment – at cost:
Land and land improvements	51,024	50,934
Construction-in-progress	13,782	35,825
Buildings and improvements	150,603	121,432
Machinery and equipment	300,250	289,493
Furniture and fixtures	9,602	9,204
Total property, plant and equipment	525,261	506,888
Accumulated depreciation	(238,463)	(225,499)
Property, plant and equipment – net	286,798	281,389
Other assets	193	193
Total assets	733,975	657,964
Current liabilities:
Trade accounts payable	36,330	18,577
Accrued liabilities	35,005	27,986
Income taxes payable	296	4,319
Total current liabilities	71,631	50,882
Deferred income taxes	20,999	33,973
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $.01 par value: authorized shares - 2,000,000; none issued	0	0
Common stock, $.01 par value: authorized shares - 40,000,000; issued shares - 26,762,703 and 26,715,216	269	268
Additional paid-in capital	58,192	55,311
Treasury stock, at cost – 6,027,455 and 6,027,455 shares	(91,056)	(91,056)
Retained earnings	673,940	608,586
Total stockholders’ equity	641,345	573,109
Total liabilities and stockholders’ equity	$ 733,975	$ 657,964

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Allowance for accounts receivable	$ 2,028	$ 2,036
Preferred stock, par value (in usd per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	2,000,000	2,000,000
Preferred stock, shares issued (in shares)	0	0
Common stock, par value (in usd per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	40,000,000	40,000,000
Common stock, shares issued (in shares)	26,859,203	26,762,703
Treasury stock, shares (in shares)	6,027,455	6,027,455

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Income Statement [Abstract]
Net sales	$ 1,164,248	$ 940,790	$ 1,017,622
Cost of goods sold	1,008,073	820,673	880,900
Gross profit	156,175	120,117	136,722
Selling, general and administrative expenses	76,726	69,351	64,493
Operating income	79,449	50,766	72,229
Net interest and other income	427	48	155
Income before income taxes	79,876	50,814	72,384
Provision for income taxes	12,859	16,975	24,779
Net income	$ 67,017	$ 33,839	$ 47,605
Earnings per common and common equivalent share - basic (in usd per share)	$ 3.23	$ 1.63	$ 2.30
Weighted average common and common equivalent shares outstanding – basic	20,767	20,704	20,713
Earnings per common and common equivalent share - diluted (in usd per share)	$ 3.21	$ 1.63	$ 2.29
Weighted average common and common equivalent shares outstanding – diluted	20,847	20,773	20,787
Cash dividends declared per share (in usd per share)	$ 0.08	$ 0.08	$ 0.08

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Treasury Stock	Retained Earnings
Beginning balance (shares) at Dec. 31, 2014		26,657,000
Beginning balance at Dec. 31, 2014	$ 493,187	$ 267	$ 50,598	$ (88,134)	$ 530,456
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	47,605				47,605
Exercise of stock options (shares)		58,000
Exercise of stock options	1,728		1,728
Tax benefit on exercise of stock options	40		40
Stock-based compensation	658		658
Dividend declared—$0.08 per share	(1,657)				(1,657)
Purchase of treasury stock	(2,922)			(2,922)
Ending balance (shares) at Dec. 31, 2015		26,715,000
Ending balance at Dec. 31, 2015	538,639	$ 267	53,024	(91,056)	576,404
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	33,839				33,839
Exercise of stock options (shares)		48,000
Exercise of stock options	1,437	$ 1	1,436
Tax benefit on exercise of stock options	60		60
Stock-based compensation	791		791
Dividend declared—$0.08 per share	(1,657)				(1,657)
Ending balance (shares) at Dec. 31, 2016		26,763,000
Ending balance at Dec. 31, 2016	573,109	$ 268	55,311	(91,056)	608,586
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	$ 67,017				67,017
Exercise of stock options (shares)	91,500	91,000
Exercise of stock options	$ 1,927	$ 1	1,926
Stock-based compensation (shares)		5,000
Stock-based compensation	955		955
Dividend declared—$0.08 per share	(1,663)				(1,663)
Ending balance (shares) at Dec. 31, 2017		26,859,000
Ending balance at Dec. 31, 2017	$ 641,345	$ 269	$ 58,192	$ (91,056)	$ 673,940

Consolidated Statements of Sto6

Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Statement of Stockholders' Equity [Abstract]
Cash dividends declared per share (in usd per share)	$ 0.08	$ 0.08	$ 0.08

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Operating Activities
Net income	$ 67,017	$ 33,839	$ 47,605
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	15,684	16,811	16,063
Deferred income taxes	(12,974)	(1,262)	16,315
Excess tax benefits of options exercised	0	(60)	(40)
Stock-based compensation attributable to equity awards	955	791	658
Other	(587)	1,294	(190)
Changes in operating assets and liabilities:
Accounts receivable	(44,030)	1,210	20,843
Inventories	909	1,980	(17,003)
Trade accounts payable and accrued liabilities	25,004	(7,778)	(5,715)
Other assets and liabilities	58	12	(2,415)
Income taxes payable	(4,023)	11,723	(5,353)
Net cash provided by operating activities	48,013	58,560	70,768
Investing Activities
Purchases of property, plant and equipment	(21,754)	(45,374)	(43,711)
Proceeds from sale of assets	1,064	3,792	242
Net cash used in investing activities	(20,690)	(41,582)	(43,469)
Financing Activities
Deferred financing fees	(1)	(197)	0
Purchase of treasury stock	0	0	(2,922)
Proceeds from issuance of common stock, net	1,948	1,416	1,728
Dividends paid	(1,661)	(1,656)	(1,657)
Excess tax benefits of options exercised	0	60	40
Net cash provided by (used in) financing activities	286	(377)	(2,811)
Net increase in cash and cash equivalents	27,609	16,601	24,488
Cash and cash equivalents at beginning of year	95,753	79,152	54,664
Cash and cash equivalents at end of year	$ 123,362	$ 95,753	$ 79,152

Significant Accounting Policies

Significant Accounting Policies	12 Months Ended
	Dec. 31, 2017
Accounting Policies [Abstract]
Significant Accounting Policies	Significant Accounting Policies Business The Company conducts its business in one segment – the manufacture of electric building wire, principally NM-B cable, for use primarily as interior wiring in homes, apartments, and manufactured housing, and THHN/THWN-2 cable and metal-clad and armored cable for use primarily as wiring in commercial and industrial buildings. The Company sells its products primarily through manufacturers’ representatives located throughout the United States and, to a lesser extent, through its own direct marketing efforts. The principal customers for Encore’s building wire are wholesale electrical distributors. Copper, a commodity product, is the principal raw material used in the Company’s manufacturing operations. Copper accounted for 69.7% , 65.2% and 72.1% of the cost of goods sold during 2017 , 2016 and 2015 , respectively. The price of copper fluctuates, depending on general economic conditions and in relation to supply and demand and other factors, and has caused monthly variations in the cost of copper purchased by the Company. The Company cannot predict future copper prices or the effect of fluctuations in the cost of copper on the Company’s future operating results. Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiary. Intercompany accounts and transactions have been eliminated upon consolidation. Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Revenue Recognition Revenue from the sale of the Company’s products is recognized when goods are shipped to the customer, title and risk of loss are transferred, pricing is fixed or determinable and collection is reasonably assured. A provision for payment discounts and customer rebates is estimated based upon historical experience and other relevant factors and is recorded within the same period that the revenue is recognized. Freight Expenses The Company classifies shipping and handling costs as a component of selling, general and administrative expenses. Shipping and handling costs were approximately $26.2 million , $24.1 million and $22.7 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. Fair Value of Financial Instruments Certain items are required to be measured at fair value on a recurring basis, primarily cash equivalents held in banks. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. A three-level hierarchy is followed for disclosure to show the extent and level of judgment used to estimate fair value measurements: Level 1 – Inputs used to measure fair value are unadjusted quoted prices that are available in active markets for the identical assets or liabilities as of the reporting date. Level 2 – Inputs used to measure fair value, other than quoted prices included in Level 1, are either directly or indirectly observable as of the reporting date through correlation with market data, including quoted prices for similar assets and liabilities in active markets and quoted prices in markets that are not active. Level 2 also includes assets and liabilities that are valued using models or other pricing methodologies that do not require significant judgment since the input assumptions used in the models, such as interest rates and volatility factors, are corroborated by readily observable data from actively quoted markets for substantially the full term of the financial instrument. Level 3 – Inputs used to measure fair value are unobservable inputs that are supported by little or no market activity and reflect the use of significant management judgment. These values are generally determined using pricing models for which the assumptions utilize management’s estimates of market participant assumptions. At December 31, 2017 and 2016, the carrying value of cash and cash equivalents excluding certificates of deposit approximated fair value, a Level 1 measurement. At December 31, 2017, the carrying value of the Company’s certificates of deposit totaling $30.2 million approximated fair value, a Level 2 measurement. At December 31, 2016, the Company had no certificates of deposit. Concentrations of Credit Risk and Accounts Receivable Financial instruments that potentially subject the Company to a concentration of credit risk consist principally of cash and cash equivalents and accounts receivable. The Company places its cash and cash equivalents with high credit quality financial institutions. Accounts receivable represent amounts due from customers, primarily wholesale electrical distributors, related to the sale of the Company’s products. Such receivables are uncollateralized and are generally due from a diverse group of customers located throughout the United States. Encore has two customers, each of whom slightly exceed 10% of the Company's total sales. The Company establishes an allowance for losses based upon the makeup of the current portfolio, past bad debt experience and current market conditions. Allowance for Losses Progression (In Thousands) 2017 2016 2015 Beginning balance January 1 $ 2,036 $ 2,065 $ 2,065 (Write offs) of bad debts, net of collections of previous write offs (8 ) (29 ) — Ending balance at December 31 $ 2,028 $ 2,036 $ 2,065 Cash and Cash Equivalents The Company considers all highly liquid instruments purchased with a maturity of three months or less to be cash equivalents. At December 31, 2017 , the Company’s cash equivalents consisted of investments in money market accounts and certificates of deposit with the Company’s banks. At December 31, 2016 , the Company’s cash equivalents consisted of investments in money market accounts with the Company’s banks. Inventories Inventories are stated at the lower of cost, using the last-in, first-out (LIFO) method, or market. The Company evaluates the market value of its raw materials, work-in-process and finished goods inventory primarily based upon current raw material and finished goods prices at the end of each period. Property, Plant, and Equipment Depreciation of property, plant and equipment for financial reporting is provided on the straight-line method over the estimated useful lives of the respective assets as follows: buildings and improvements, 15 to 39 years; machinery and equipment, 3 to 20 years; and furniture and fixtures, 3 to 15 years. Accelerated cost recovery methods are used for tax purposes. Repairs and maintenance costs are expensed as incurred. Stock-Based Compensation Compensation cost for all equity-based compensation expected to vest is measured at fair value on the date of grant and recognized over the related service period. The fair value of stock awards is determined based on the number of shares granted and the quoted price of Encore’s common stock, and the fair value of stock options and stock appreciation rights is estimated on the date of grant using the Black-Scholes model. Such value is recognized as expense over the service period, net of estimated forfeitures, on a straight-line basis. To the extent actual forfeitures or updated estimates of forfeitures differ from management’s current estimates, such amounts are recorded as a cumulative adjustment in the period estimates are revised. Earnings Per Share Earnings per common and common equivalent share is computed using the weighted average number of shares of common stock and common stock equivalents outstanding during each period. The dilutive effects of stock options, which are common stock equivalents, are calculated using the treasury stock method. Income Taxes Income taxes are provided for based on the liability method, resulting in deferred income tax assets and liabilities arising due to temporary differences. Temporary differences are differences between the tax basis of assets and liabilities and their reported amounts in the financial statements that will result in taxable or deductible amounts in future years. The effect on deferred income tax assets and liabilities of a change in tax rates is recognized in income in the period the change in rate is enacted. Comprehensive Income Comprehensive income is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. There were no differences between comprehensive income and reported income in the periods presented. Recent Accounting Pronouncements Effective January 1, 2017, the Company adopted ASU No. 2016-09, “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting,” which requires excess tax benefits and deficiencies to be recognized as a component of income tax expense rather than equity. This guidance also requires excess tax benefits to be presented as an operating activity on the statement of cash flows and allows an entity to make an accounting policy election to either estimate expected forfeitures or to account for them as they occur. The Company elected not to change its policy on accounting for forfeitures and will continue to estimate a requisite forfeiture rate. The Company elected to apply the guidance for classification of excess tax benefits in the statement of cash flows prospectively and accordingly, no adjustments were required to prior period amounts as a result of its adoption of ASU No. 2016-09. The adoption of this new standard did not have a material impact on the Company's consolidated financial position, results of operations or statement of cash flows. In December 2017, the SEC staff issued Staff Accounting Bulletin No. 118, “Income Tax Accounting Implications of the Tax Cuts and Jobs Act (SAB 118),” which allows the Company to record provisional amounts during a measurement period not to extend beyond one year of the enactment date. Since the 2017 Tax Act was passed late in the fourth quarter of 2017, and ongoing guidance and accounting interpretation is expected over the next twelve months, management considers the deferred tax re-measurements and other items to be incomplete due to the forthcoming guidance and the ongoing analysis of final year-end data and tax positions. The Company expects to complete its analysis within the measurement period in accordance with SAB 118. In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606),” which supersedes the revenue recognition requirements in ASC Topic 605, “Revenue Recognition,” and most industry-specific guidance. This ASU is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments, and assets recognized from costs incurred to obtain or fulfill a contract. Management has completed the process of evaluating the effect of the adoption and determined the adoption of ASU No. 2014-09 will not have a material impact on the Company’s results of operations cash flows, or financial position. Based on management’s evaluation process and review of Encore’s contracts with customers, the majority of the Company’s revenue arrangements generally consist of a single performance obligation to transfer promised goods and the timing and amount of revenue recognized based on ASU No. 2014-09 is consistent with the Company’s revenue recognition policy under previous guidance. The Company adopted the new standard effective January 1, 2018, using the modified retrospective approach, and will expand its consolidated financial statement disclosures in order to comply with the ASU. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842).” Under the new guidance, a lessee will be required to recognize a right to use asset and a lease liability for all leases with terms of twelve months or longer. Lessor accounting remains largely consistent with existing U.S. generally accepted accounting principles. The new standard will be effective for us beginning January 1, 2019. Early adoption is permitted. The standard requires the use of a modified retrospective transition method. The Company is evaluating the effect that ASU 2016-02 will have on its consolidated financial statements and related disclosures.

Inventories

Inventories	12 Months Ended
	Dec. 31, 2017
Inventory Disclosure [Abstract]
Inventories	Inventories Inventories consist of the following as of December 31: In Thousands 2017 2016 Raw materials $ 32,928 $ 23,144 Work-in-process 22,753 20,889 Finished goods 88,497 81,764 Total 144,178 125,797 Adjust to LIFO cost (51,813 ) (32,523 ) Inventory $ 92,365 $ 93,274 There were no liquidations of inventories that had a material impact on the Company’s results of operations for any period presented.

Accrued Liabilities

Accrued Liabilities	12 Months Ended
	Dec. 31, 2017
Accrued Liabilities, Current [Abstract]
Accrued Liabilities	Accrued Liabilities Accrued liabilities consist of the following as of December 31: In Thousands 2017 2016 Sales volume discounts payable $ 17,386 $ 13,590 Property taxes payable 3,802 3,932 Accrued salaries 8,318 6,198 Other accrued liabilities 5,499 4,266 Total accrued liabilities $ 35,005 $ 27,986

Debt

Debt	12 Months Ended
	Dec. 31, 2017
Debt Disclosure [Abstract]
Debt	Debt At December 31, 2017 and 2016 , the Company had no debt outstanding. The Company is party to a Credit Agreement (as amended, the “Credit Agreement”) with two banks, Bank of America, N.A., as administrative agent and letter of credit issuer, and Wells Fargo Bank, National Association as syndication agent. The Credit Agreement extends through October 1, 2021 , and provides for maximum borrowings of $150.0 million . In the third quarter of 2016, the Company signed a Third Amendment to the Credit Agreement, which, along with other minor changes, eliminated the restriction of maximum borrowings based on the amount of eligible accounts receivable plus the amount of eligible finished goods and raw materials, less any reserves established by the banks. Additionally, at the Company's request and subject to certain conditions, the commitments under the Credit Agreement may be increased by a maximum of up to $100.0 million as long as existing or new lenders agree to provide such additional commitments. Borrowings under the line of credit bear interest, at the Company’s option, at either (1) LIBOR plus a margin that varies from 0.875% to 1.75% depending upon the Leverage Ratio (as defined in the Credit Agreement), or (2) the base rate (which is the highest of the federal funds rate plus 0.5% , the prime rate, or LIBOR plus 1.0% ) plus 0% to 0.25% (depending upon the Leverage Ratio). A commitment fee ranging from 0.15% to 0.30% (depending upon the Leverage Ratio) is payable on the unused line of credit. At December 31, 2017 , there were no borrowings outstanding under the Credit Agreement, and letters of credit outstanding in the amount of $1.3 million left $148.7 million of credit available under the Credit Agreement. Obligations under the Credit Agreement are the only contractual borrowing obligations or commercial borrowing commitments of the Company. Obligations under the Credit Agreement are unsecured and contain customary covenants and events of default. The Company was in compliance with the covenants as of December 31, 2017 . The Company paid interest totaling $0.2 million , $0.2 million and $0.3 million in 2017 , 2016 and 2015 , respectively, none of which was capitalized.

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Tax Cuts and Jobs Act of 2017 (“the 2017 Tax Act”) was signed into law on December 22, 2017. The 2017 Tax Act significantly revises the U.S. corporate income tax by, among other things, lowering the statutory corporate tax rate from 35% to 21%, eliminating certain deductions and introducing new tax regimes. The 2017 Tax Act also enhanced and extended through 2026 the option to claim accelerated depreciation deductions on qualified property. The Company has not completed its determination of the accounting implications of the 2017 Tax Act on its tax accruals. However, management has reasonably estimated the effects of the 2017 Tax Act and recorded provisional amounts in the Company’s financial statements as of December 31, 2017, including a provisional tax benefit for the impact of the 2017 Tax Act of approximately $13.5 million . This amount is primarily comprised of the remeasurement of federal net deferred tax liabilities resulting from the permanent reduction in the U.S. statutory corporate tax rate to 21% from 35%. Additional information that may affect the Company’s provisional amounts would include further clarification and guidance on how the IRS will implement tax reform, further clarification and guidance on how state taxing authorities will implement tax reform, including the related effect on the Company’s state income tax returns, completion of the Company’s 2017 tax return filings and the potential for additional guidance from the SEC or the FASB related to tax reform. Management may make adjustments to the provisional amounts as a result this additional information and those adjustments may materially impact the Company’s provision for income taxes in the period in which the adjustments are made. The provisions for income tax expense are summarized as follows for the years ended December 31: In Thousands 2017 2016 2015 Current: Federal $ 24,421 $ 17,139 $ 7,918 State 1,411 1,098 546 Deferred: Federal (13,289 ) (905 ) 16,486 State 316 (357 ) (171 ) Total Income Tax Expense $ 12,859 $ 16,975 $ 24,779 The differences between the provision for income taxes and income taxes computed using the federal income tax rate are as follows for the years ended December 31: In Thousands 2017 2016 2015 Amount computed using the statutory rate $ 27,956 $ 17,769 $ 25,334 State income taxes, net of federal tax benefit 1,166 482 244 Qualified domestic production activity deduction (2,464 ) (1,712 ) (859 ) Effect of 2018 deferred rate change (13,463 ) — — Other (336 ) 436 60 Total Income Tax Expense $ 12,859 $ 16,975 $ 24,779 The domestic production activity deduction reduced the Company’s effective tax rate 3.1% , 3.4% and 1.2% in 2017, 2016 and 2015, respectively. The 2017 Tax Act eliminated the qualified domestic production activities deduction beginning in 2018. The tax effect of each type of temporary difference giving rise to the net deferred tax liability at December 31, 2017 and 2016 is as follows: In Thousands 2017 2016 Depreciation $ (22,121 ) $ (30,845 ) Inventory (486 ) (5,807 ) Allowance for doubtful accounts 457 738 Uniform capitalization rules 610 932 Other 541 1,009 Deferred income tax liability $ (20,999 ) $ (33,973 ) The Company made income tax payments of $30.0 million in 2017 , $6.7 million in 2016 and $14.0 million in 2015 . The Company was audited by the IRS for the year 2015. The audit concluded with no adjustments. The Company’s federal income tax returns for the years subsequent to December 31, 2015 remain subject to examination. The Company’s income tax returns in major state income tax jurisdictions remain subject to examination for various periods subsequent to December 31, 2012. The Company has no reserves for uncertain tax positions as of December 31, 2017 and 2016 . Interest and penalties resulting from audits by tax authorities have been immaterial and are included in the provision for income taxes in the consolidated statements of income.

Stock-Based Compensation

Stock-Based Compensation	12 Months Ended
	Dec. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation	Stock-Based Compensation Total stock-based compensation expense by type of award was as follows for the years ended December 31: In Thousands 2017 2016 2015 Stock options $ 738 $ 791 $ 658 Stock appreciation rights (“SARs”) 1,543 805 144 Stock grants 217 — — Total stock-based compensation expense $ 2,498 $ 1,596 $ 802 Tax benefit on exercise of stock options $ — $ 60 $ 40 Stock Options: In 2010, the Board of Directors adopted a new stock option plan called the Encore Wire 2010 Stock Option Plan (the “2010 Stock Option Plan”) which was approved by the Company’s stockholders at the 2010 Annual Meeting of Stockholders. Similar to the 1999 Stock Option Plan, which expired on June 28, 2009, the 2010 Stock Option Plan permits the grant of stock options to directors, officers and employees of the Company. The Company granted stock option awards in 2017, 2016 and 2015 with exercise prices equal to the fair market value of its stock on the date of grant of the options. These options vest ratably over a period of five years from the time the options were granted. The maximum term of any option granted under the 1999 or 2010 Stock Option Plan is ten years . New shares are issued upon the exercise of options. As of December 31, 2017 , 592,300 options were available to be granted in the future under the 2010 Stock Option Plan. The following presents a summary of stock option activity for the year ended December 31, 2017 : Number Weighted Weighted Aggregate Outstanding at January 1, 2017 351,400 $ 31.28 Granted 80,000 41.95 Exercised (91,500 ) 21.06 Outstanding at December 31, 2017 339,900 $ 36.55 6.8 years $ 4,258 Vested and exercisable at December 31, 2017 146,899 $ 33.36 5.0 years $ 2,334 The fair value of stock options granted during the years ended December 31, 2017 , 2016 and 2015 , was estimated on the date of grant using a Black-Scholes option pricing model and the following weighted average assumptions: Year Ended December 31, 2017 2016 2015 Risk-free interest rate 1.84 % 1.46 % 1.22 % Expected dividend yield 0.19 % 0.23 % 0.25 % Expected volatility 30.80 % 32.92 % 31.90 % Expected lives 5.0 years 5.0 years 5.0 years The Company bases expected volatilities on historical volatilities of Encore's common stock. The expected life represents the weighted average period of time that options granted are expected to be outstanding giving consideration to vesting periods and management’s consideration of historical exercise patterns. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant for periods corresponding to the expected life of the option. The expected dividend yield is based on the annualized dividend payment paid on common shares. During the years ended December 31, 2017 , 2016 and 2015 , the weighted average grant date fair value of options granted was $12.46 , $10.64 and $9.25 , respectively, and the total intrinsic value of options exercised was $2.2 million , $0.5 million and $0.7 million , respectively. As of December 31, 2017 , total unrecognized compensation cost related to non-vested stock options of $1.2 million was expected to be recognized over a weighted average period of 2.7 years . Stock Appreciation Rights: In 2014, the Board of Directors adopted a new stock appreciation rights plan called the Encore Wire 2014 Stock Appreciation Rights Plan (the “2014 SARs Plan”). The 2014 SARs Plan permits the grant of SARs that may only be settled in cash to non-executive officers and employees of the Company. SARs granted to employees vest ratably over a period of five years from the time the SARs were granted. The maximum term of any SARs granted under the 2014 SARs Plan is ten years. These awards are classified as liability awards. The liability balance was $2.5 million and $1.2 million at December 31, 2017 and 2016 , respectively, and are included in accrued liabilities. Compensation cost for these awards is determined using a fair value method and remeasured at each reporting date until the date of settlement. As of December 31, 2017 , a total of 366,900 SARs was outstanding under the 2014 SARs Plan. The following presents a summary of SARs activity for the year ended December 31, 2017 : Cash-settled SARs Weighted Weighted Aggregate Outstanding at January 1, 2017 226,500 $ 37.97 Granted 174,500 41.95 Exercised (21,300 ) 38.49 Forfeited/Canceled (12,800 ) 41.36 Outstanding at December 31, 2017 366,900 $ 39.73 8.2 years $ 3,274 Vested and exercisable at December 31, 2017 67,200 $ 39.87 7.0 years $ 590 The fair value of SARs granted during the years ended December 31, 2017 , 2016 and 2015 , was estimated on the date of grant using a Black-Scholes option pricing model and the following weighted average assumptions: Year Ended December 31, 2017 2016 2015 Risk-free interest rate 2.01 % 1.53 % 1.39 % Expected dividend yield 0.16 % 0.18 % 0.22 % Expected volatility 31.90 % 33.25 % 30.30 % Expected lives 3.2 years 3.4 years 3.2 years The Company bases expected volatilities on historical volatilities of Encore's common stock. The expected life represents the weighted average period of time that options granted are expected to be outstanding giving consideration to vesting periods and management’s consideration of historical exercise patterns. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant for periods corresponding to the expected life of the option. The expected dividend yield is based on the annualized dividend payment paid on common shares. During the years ended December 31, 2017 , 2016 and 2015 , the weighted average grant date fair value of SARs granted was $16.09 , $13.36 and $7.33 , respectively, and the total intrinsic value of SARs exercised was $0.3 million in 2017 and negligible in 2016. No SARs were exercised in 2015. As of December 31, 2017 , total unrecognized compensation cost related to non-vested SARs of $3.5 million was expected to be recognized over a weighted average period of 3.2 years . Stock Grants: In May 2017, the Company granted 1,000 shares of stock to each of the 5 non-employee directors, with a grant date fair value of $43.40 per share.

Earnings Per Share

Earnings Per Share	12 Months Ended
	Dec. 31, 2017
Earnings Per Share [Abstract]
Earnings Per Share	Earnings Per Share The following table sets forth certain components of the computation of basic and diluted earnings per share for the years ended December 31: In Thousands 2017 2016 2015 Numerator: Net income $ 67,017 $ 33,839 $ 47,605 Denominator: Denominator for basic earnings per share – weighted average shares 20,767 20,704 20,713 Effect of dilutive securities: Employee stock options 80 69 74 Denominator for diluted earnings per share – weighted average shares 20,847 20,773 20,787 Stock options to purchase common stock at exercise prices in excess of the average actual stock price for the period that were anti-dilutive and that were excluded from the determination of diluted earnings per share are as follows: In Thousands, Except Per Share Data 2017 2016 2015 Weighted average anti-dilutive stock options 125 143 96 Weighted average exercise price per share $ 45.74 $ 40.39 $ 43.43

Stockholders' Equity

Stockholders' Equity	12 Months Ended
	Dec. 31, 2017
Equity [Abstract]
Stockholders' Equity	Stockholders’ Equity On November 10, 2006, the Board of Directors approved a stock repurchase program authorizing the Company to repurchase up to an authorized number of shares of its common stock on the open market or through privately negotiated transactions at prices determined by the President of the Company during the term of the program. The Company’s Board of Directors has authorized several increases and annual extensions of this stock repurchase program, and, as of December 31, 2017 , 1,132,946 shares remained authorized for repurchase through March 31, 2018. The Company did not repurchase any shares of its stock in 2017 and 2016. The Company repurchased 92,804 shares of its stock in the third quarter of 2015, its only purchases in 2015. The Company also has a broker agreement to repurchase stock in the open market at certain trigger points pursuant to a Rule 10b5-1 plan announced on November 28, 2007.

Contingencies

Contingencies	12 Months Ended
	Dec. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Contingencies	Contingencies The Company is from time to time involved in litigation, certain other claims and arbitration matters arising in the ordinary course of its business. The Company accrues for a liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Significant judgment is required in both the determination of the probability of a loss and the determination as to whether a loss is reasonably estimable. Any such accruals are reviewed at least quarterly and adjusted to reflect the effects of negotiations, settlements, rulings, advice of legal counsel and technical experts and other information and events pertaining to a particular matter. To the extent there is a reasonable possibility (within the meaning of ASC 450) that probable losses could exceed amounts already accrued, if any, and the additional loss or range of loss is able to be estimated, management discloses the additional loss or range of loss. For matters where the Company has evaluated that a loss is not probable, but is reasonably possible, the Company will disclose an estimate of the possible loss or range of loss or make a statement that such an estimate cannot be made. In some instances, for reasonably possible losses, the Company cannot estimate the possible loss or range of loss. The nature and progression of litigation can make it difficult to predict the impact a particular lawsuit will have on the Company. There are many reasons that the Company cannot make these assessments, including, among others, one or more of the following: the early stages of a proceeding; damages sought that are unspecified, unsupportable, unexplained or uncertain; discovery is incomplete; the complexity of the facts that are in dispute; the difficulty of assessing novel claims; the parties not having engaged in any meaningful settlement discussions; the possibility that other parties may share in any ultimate liability; and/or the often slow pace of litigation. On July 7, 2009, Southwire Company, a Delaware corporation (“Southwire”), filed a complaint for patent infringement against the Company and Cerro Wire, Inc. (“Cerro”) in the United States District Court for the Eastern District of Texas. In the complaint, Southwire alleged that the Company infringed one or more claims of United States Patent No. 7,557,301 (the “301 Patent”), entitled “Method of Manufacturing Electrical Cable Having Reduced Required Force for Installation,” by making and selling electrical cables, including the Company’s Super Slick cables. The case has been transferred to the Northern District of Georgia and the parties have agreed to stay it pending reexamination of the 301 Patent by the United States Patent and Trademark Office. One reexamination proceeding - a reexamination request by Cerro - remains pending. In that reexamination, the examiner rejected all the claims, and the Patent Trial and Appeal Board affirmed the examiner's rejection. Southwire appealed the decision to the Federal Circuit, and on September 8, 2017, the Federal Circuit affirmed the Patent Trial and Appeal Board affirmance of the examiner’s rejection. On October 10, 2017, Southwire filed a Petition for Rehearing en banc (a rehearing by the full court). The Court denied such Petition for Rehearing en banc. The deadline for Southwire to appeal to the United States Supreme Court is March 6, 2018. The potentially applicable factual and legal issues related to the above claims asserted against the Company have not been resolved. The Company disputes all of Southwire’s claims and alleged damages and intends to vigorously defend the lawsuits and vigorously pursue its own claims against Southwire if and when the litigation resumes. At this time, given the status of the proceedings, the complexities of the facts in dispute and the multiple claims involved, the Company has not concluded that a probable loss exists with respect to the Southwire litigation. Accordingly, no accrual has been made. Additionally, given the aforementioned uncertainties, while it is reasonably possible we may incur a loss, the Company is unable to estimate any possible loss or range of losses for disclosure purposes.

Encore Wire Corporation 401(k)

Encore Wire Corporation 401(k) Profit Sharing Plan	12 Months Ended
	Dec. 31, 2017
Defined Contribution Plan [Abstract]
Encore Wire Corporation 401(k) Profit Sharing Plan	Encore Wire Corporation 401(k) Profit Sharing Plan The Company sponsors a 401(k) profit sharing plan (the “Plan”) that permits eligible employees to make self-directed contributions of their compensation, a portion of which is matched by the Company, subject to applicable limitations. At the discretion of its Board of Directors, the Company may, but is not required to, make profit-sharing contributions to the Plan on behalf of its employees. The Company’s matching contributions were $1.9 million , $1.9 million and $1.5 million in 2017 , 2016 and 2015 , respectively.

Related Party Transactions

Related Party Transactions	12 Months Ended
	Dec. 31, 2017
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions Prior to 2017, the Company purchased certain finished goods inventory components from a company that was partially owned by a family member of an individual serving on the Board of Directors. The purchases totaled approximately $10.3 million and $13.4 million in 2016 and 2015. This supplier was sold during 2016 to an unrelated company. Therefore, this related party relationship ended in mid-2016. The Company obtains quotes and purchases items from other vendors at prices that confirm that the Company obtains prices that are no less favorable than prices available from non-affiliated parties. Related party transactions are approved by the Audit Committee pursuant to Encore Wire Corporation’s Related Party Transactions Policy.

Quarterly Financial Information

Quarterly Financial Information (Unaudited)	12 Months Ended
	Dec. 31, 2017
Quarterly Financial Information Disclosure [Abstract]
Quarterly Financial Information (Unaudited)	Quarterly Financial Information (Unaudited) The following is a summary of the unaudited quarterly financial information for the two years ended December 31, 2017 and 2016 (in thousands, except per share data): Three Months Ended 2017 March 31 June 30 September 30 December 31 Net sales $ 279,392 $ 291,534 $ 292,030 $ 301,292 Gross profit 39,205 35,872 39,087 42,011 Net income 13,632 10,933 13,964 28,488 Earnings per common share – basic 0.66 0.53 0.67 1.37 Earnings per common share – diluted 0.65 0.52 0.67 1.36 Three Months Ended 2016 March 31 June 30 September 30 December 31 Net sales $ 225,544 $ 238,831 $ 237,168 $ 239,247 Gross profit 30,143 28,631 27,818 33,525 Net income 8,599 7,839 5,999 11,402 Earnings per common share – basic 0.42 0.38 0.29 0.55 Earnings per common share – diluted 0.41 0.38 0.29 0.55

Significant Accounting Polici20

Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2017
Accounting Policies [Abstract]
Business	Business The Company conducts its business in one segment – the manufacture of electric building wire, principally NM-B cable, for use primarily as interior wiring in homes, apartments, and manufactured housing, and THHN/THWN-2 cable and metal-clad and armored cable for use primarily as wiring in commercial and industrial buildings. The Company sells its products primarily through manufacturers’ representatives located throughout the United States and, to a lesser extent, through its own direct marketing efforts. The principal customers for Encore’s building wire are wholesale electrical distributors.
Principles of Consolidation	Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiary. Intercompany accounts and transactions have been eliminated upon consolidation.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.
Revenue Recognition	Revenue Recognition Revenue from the sale of the Company’s products is recognized when goods are shipped to the customer, title and risk of loss are transferred, pricing is fixed or determinable and collection is reasonably assured. A provision for payment discounts and customer rebates is estimated based upon historical experience and other relevant factors and is recorded within the same period that the revenue is recognized.
Freight Expenses	Freight Expenses The Company classifies shipping and handling costs as a component of selling, general and administrative expenses.
Fair Value of Financial Instruments	Fair Value of Financial Instruments Certain items are required to be measured at fair value on a recurring basis, primarily cash equivalents held in banks. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. A three-level hierarchy is followed for disclosure to show the extent and level of judgment used to estimate fair value measurements: Level 1 – Inputs used to measure fair value are unadjusted quoted prices that are available in active markets for the identical assets or liabilities as of the reporting date. Level 2 – Inputs used to measure fair value, other than quoted prices included in Level 1, are either directly or indirectly observable as of the reporting date through correlation with market data, including quoted prices for similar assets and liabilities in active markets and quoted prices in markets that are not active. Level 2 also includes assets and liabilities that are valued using models or other pricing methodologies that do not require significant judgment since the input assumptions used in the models, such as interest rates and volatility factors, are corroborated by readily observable data from actively quoted markets for substantially the full term of the financial instrument. Level 3 – Inputs used to measure fair value are unobservable inputs that are supported by little or no market activity and reflect the use of significant management judgment. These values are generally determined using pricing models for which the assumptions utilize management’s estimates of market participant assumptions.
Concentrations of Credit Risk and Accounts Receivable	Concentrations of Credit Risk and Accounts Receivable Financial instruments that potentially subject the Company to a concentration of credit risk consist principally of cash and cash equivalents and accounts receivable. The Company places its cash and cash equivalents with high credit quality financial institutions. Accounts receivable represent amounts due from customers, primarily wholesale electrical distributors, related to the sale of the Company’s products. Such receivables are uncollateralized and are generally due from a diverse group of customers located throughout the United States. Encore has two customers, each of whom slightly exceed 10% of the Company's total sales. The Company establishes an allowance for losses based upon the makeup of the current portfolio, past bad debt experience and current market conditions. Allowance for Losses Progression (In Thousands) 2017 2016 2015 Beginning balance January 1 $ 2,036 $ 2,065 $ 2,065 (Write offs) of bad debts, net of collections of previous write offs (8 ) (29 ) — Ending balance at December 31 $ 2,028 $ 2,036 $ 2,065
Cash and Cash Equivalents	Cash and Cash Equivalents The Company considers all highly liquid instruments purchased with a maturity of three months or less to be cash equivalents.
Inventories	Inventories Inventories are stated at the lower of cost, using the last-in, first-out (LIFO) method, or market. The Company evaluates the market value of its raw materials, work-in-process and finished goods inventory primarily based upon current raw material and finished goods prices at the end of each period.
Property, Plant, and Equipment	Property, Plant, and Equipment Depreciation of property, plant and equipment for financial reporting is provided on the straight-line method over the estimated useful lives of the respective assets as follows: buildings and improvements, 15 to 39 years; machinery and equipment, 3 to 20 years; and furniture and fixtures, 3 to 15 years. Accelerated cost recovery methods are used for tax purposes. Repairs and maintenance costs are expensed as incurred.
Stock-Based Compensation	Stock-Based Compensation Compensation cost for all equity-based compensation expected to vest is measured at fair value on the date of grant and recognized over the related service period. The fair value of stock awards is determined based on the number of shares granted and the quoted price of Encore’s common stock, and the fair value of stock options and stock appreciation rights is estimated on the date of grant using the Black-Scholes model. Such value is recognized as expense over the service period, net of estimated forfeitures, on a straight-line basis. To the extent actual forfeitures or updated estimates of forfeitures differ from management’s current estimates, such amounts are recorded as a cumulative adjustment in the period estimates are revised.
Earnings Per Share	Earnings Per Share Earnings per common and common equivalent share is computed using the weighted average number of shares of common stock and common stock equivalents outstanding during each period. The dilutive effects of stock options, which are common stock equivalents, are calculated using the treasury stock method.
Income Taxes	Income Taxes Income taxes are provided for based on the liability method, resulting in deferred income tax assets and liabilities arising due to temporary differences. Temporary differences are differences between the tax basis of assets and liabilities and their reported amounts in the financial statements that will result in taxable or deductible amounts in future years. The effect on deferred income tax assets and liabilities of a change in tax rates is recognized in income in the period the change in rate is enacted.
Comprehensive Income	Comprehensive Income Comprehensive income is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. There were no differences between comprehensive income and reported income in the periods presented.
Recent Accounting Pronouncements	Recent Accounting Pronouncements Effective January 1, 2017, the Company adopted ASU No. 2016-09, “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting,” which requires excess tax benefits and deficiencies to be recognized as a component of income tax expense rather than equity. This guidance also requires excess tax benefits to be presented as an operating activity on the statement of cash flows and allows an entity to make an accounting policy election to either estimate expected forfeitures or to account for them as they occur. The Company elected not to change its policy on accounting for forfeitures and will continue to estimate a requisite forfeiture rate. The Company elected to apply the guidance for classification of excess tax benefits in the statement of cash flows prospectively and accordingly, no adjustments were required to prior period amounts as a result of its adoption of ASU No. 2016-09. The adoption of this new standard did not have a material impact on the Company's consolidated financial position, results of operations or statement of cash flows. In December 2017, the SEC staff issued Staff Accounting Bulletin No. 118, “Income Tax Accounting Implications of the Tax Cuts and Jobs Act (SAB 118),” which allows the Company to record provisional amounts during a measurement period not to extend beyond one year of the enactment date. Since the 2017 Tax Act was passed late in the fourth quarter of 2017, and ongoing guidance and accounting interpretation is expected over the next twelve months, management considers the deferred tax re-measurements and other items to be incomplete due to the forthcoming guidance and the ongoing analysis of final year-end data and tax positions. The Company expects to complete its analysis within the measurement period in accordance with SAB 118. In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606),” which supersedes the revenue recognition requirements in ASC Topic 605, “Revenue Recognition,” and most industry-specific guidance. This ASU is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments, and assets recognized from costs incurred to obtain or fulfill a contract. Management has completed the process of evaluating the effect of the adoption and determined the adoption of ASU No. 2014-09 will not have a material impact on the Company’s results of operations cash flows, or financial position. Based on management’s evaluation process and review of Encore’s contracts with customers, the majority of the Company’s revenue arrangements generally consist of a single performance obligation to transfer promised goods and the timing and amount of revenue recognized based on ASU No. 2014-09 is consistent with the Company’s revenue recognition policy under previous guidance. The Company adopted the new standard effective January 1, 2018, using the modified retrospective approach, and will expand its consolidated financial statement disclosures in order to comply with the ASU. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842).” Under the new guidance, a lessee will be required to recognize a right to use asset and a lease liability for all leases with terms of twelve months or longer. Lessor accounting remains largely consistent with existing U.S. generally accepted accounting principles. The new standard will be effective for us beginning January 1, 2019. Early adoption is permitted. The standard requires the use of a modified retrospective transition method. The Company is evaluating the effect that ASU 2016-02 will have on its consolidated financial statements and related disclosures.

Significant Accounting Polici21

Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2017
Accounting Policies [Abstract]
Summary of Allowance for Losses Progression	The Company establishes an allowance for losses based upon the makeup of the current portfolio, past bad debt experience and current market conditions. Allowance for Losses Progression (In Thousands) 2017 2016 2015 Beginning balance January 1 $ 2,036 $ 2,065 $ 2,065 (Write offs) of bad debts, net of collections of previous write offs (8 ) (29 ) — Ending balance at December 31 $ 2,028 $ 2,036 $ 2,065

Inventories (Tables)

Inventories (Tables)	12 Months Ended
	Dec. 31, 2017
Inventory Disclosure [Abstract]
Inventories	Inventories consist of the following as of December 31: In Thousands 2017 2016 Raw materials $ 32,928 $ 23,144 Work-in-process 22,753 20,889 Finished goods 88,497 81,764 Total 144,178 125,797 Adjust to LIFO cost (51,813 ) (32,523 ) Inventory $ 92,365 $ 93,274

Accrued Liabilities (Tables)

Accrued Liabilities (Tables)	12 Months Ended
	Dec. 31, 2017
Accrued Liabilities, Current [Abstract]
Accrued Liabilities	Accrued liabilities consist of the following as of December 31: In Thousands 2017 2016 Sales volume discounts payable $ 17,386 $ 13,590 Property taxes payable 3,802 3,932 Accrued salaries 8,318 6,198 Other accrued liabilities 5,499 4,266 Total accrued liabilities $ 35,005 $ 27,986

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Summary of Income Tax Expenses	The provisions for income tax expense are summarized as follows for the years ended December 31: In Thousands 2017 2016 2015 Current: Federal $ 24,421 $ 17,139 $ 7,918 State 1,411 1,098 546 Deferred: Federal (13,289 ) (905 ) 16,486 State 316 (357 ) (171 ) Total Income Tax Expense $ 12,859 $ 16,975 $ 24,779
Summary of Differences Between Provision for Income Taxes and Income Taxes Computed Using Federal Income Tax Rate	The differences between the provision for income taxes and income taxes computed using the federal income tax rate are as follows for the years ended December 31: In Thousands 2017 2016 2015 Amount computed using the statutory rate $ 27,956 $ 17,769 $ 25,334 State income taxes, net of federal tax benefit 1,166 482 244 Qualified domestic production activity deduction (2,464 ) (1,712 ) (859 ) Effect of 2018 deferred rate change (13,463 ) — — Other (336 ) 436 60 Total Income Tax Expense $ 12,859 $ 16,975 $ 24,779
Summary of Net Deferred Tax Liability	The tax effect of each type of temporary difference giving rise to the net deferred tax liability at December 31, 2017 and 2016 is as follows: In Thousands 2017 2016 Depreciation $ (22,121 ) $ (30,845 ) Inventory (486 ) (5,807 ) Allowance for doubtful accounts 457 738 Uniform capitalization rules 610 932 Other 541 1,009 Deferred income tax liability $ (20,999 ) $ (33,973 )

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	12 Months Ended
	Dec. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of Total Stock-Based Compensation Expense by Type of Award	Total stock-based compensation expense by type of award was as follows for the years ended December 31: In Thousands 2017 2016 2015 Stock options $ 738 $ 791 $ 658 Stock appreciation rights (“SARs”) 1,543 805 144 Stock grants 217 — — Total stock-based compensation expense $ 2,498 $ 1,596 $ 802 Tax benefit on exercise of stock options $ — $ 60 $ 40
Summary of Stock Option Activity	The following presents a summary of stock option activity for the year ended December 31, 2017 : Number Weighted Weighted Aggregate Outstanding at January 1, 2017 351,400 $ 31.28 Granted 80,000 41.95 Exercised (91,500 ) 21.06 Outstanding at December 31, 2017 339,900 $ 36.55 6.8 years $ 4,258 Vested and exercisable at December 31, 2017 146,899 $ 33.36 5.0 years $ 2,334
Stock Options Valuation Assumptions	The fair value of stock options granted during the years ended December 31, 2017 , 2016 and 2015 , was estimated on the date of grant using a Black-Scholes option pricing model and the following weighted average assumptions: Year Ended December 31, 2017 2016 2015 Risk-free interest rate 1.84 % 1.46 % 1.22 % Expected dividend yield 0.19 % 0.23 % 0.25 % Expected volatility 30.80 % 32.92 % 31.90 % Expected lives 5.0 years 5.0 years 5.0 years
Summary of Stock Appreciation Rights Activity	The following presents a summary of SARs activity for the year ended December 31, 2017 : Cash-settled SARs Weighted Weighted Aggregate Outstanding at January 1, 2017 226,500 $ 37.97 Granted 174,500 41.95 Exercised (21,300 ) 38.49 Forfeited/Canceled (12,800 ) 41.36 Outstanding at December 31, 2017 366,900 $ 39.73 8.2 years $ 3,274 Vested and exercisable at December 31, 2017 67,200 $ 39.87 7.0 years $ 590
Stock Appreciation Rights Valuation Assumptions	The fair value of SARs granted during the years ended December 31, 2017 , 2016 and 2015 , was estimated on the date of grant using a Black-Scholes option pricing model and the following weighted average assumptions: Year Ended December 31, 2017 2016 2015 Risk-free interest rate 2.01 % 1.53 % 1.39 % Expected dividend yield 0.16 % 0.18 % 0.22 % Expected volatility 31.90 % 33.25 % 30.30 % Expected lives 3.2 years 3.4 years 3.2 years

Earnings Per Share (Tables)

Earnings Per Share (Tables)	12 Months Ended
	Dec. 31, 2017
Earnings Per Share [Abstract]
Computation of Basic and Diluted Earnings Per Share	The following table sets forth certain components of the computation of basic and diluted earnings per share for the years ended December 31: In Thousands 2017 2016 2015 Numerator: Net income $ 67,017 $ 33,839 $ 47,605 Denominator: Denominator for basic earnings per share – weighted average shares 20,767 20,704 20,713 Effect of dilutive securities: Employee stock options 80 69 74 Denominator for diluted earnings per share – weighted average shares 20,847 20,773 20,787
Anti-dilutive Excluded from Diluted Earnings Per Share	Stock options to purchase common stock at exercise prices in excess of the average actual stock price for the period that were anti-dilutive and that were excluded from the determination of diluted earnings per share are as follows: In Thousands, Except Per Share Data 2017 2016 2015 Weighted average anti-dilutive stock options 125 143 96 Weighted average exercise price per share $ 45.74 $ 40.39 $ 43.43

Quarterly Financial Informati27

Quarterly Financial Information (Unaudited) (Tables)	12 Months Ended
	Dec. 31, 2017
Quarterly Financial Information Disclosure [Abstract]
Summary of Unaudited Quarterly Financial Information	The following is a summary of the unaudited quarterly financial information for the two years ended December 31, 2017 and 2016 (in thousands, except per share data): Three Months Ended 2017 March 31 June 30 September 30 December 31 Net sales $ 279,392 $ 291,534 $ 292,030 $ 301,292 Gross profit 39,205 35,872 39,087 42,011 Net income 13,632 10,933 13,964 28,488 Earnings per common share – basic 0.66 0.53 0.67 1.37 Earnings per common share – diluted 0.65 0.52 0.67 1.36 Three Months Ended 2016 March 31 June 30 September 30 December 31 Net sales $ 225,544 $ 238,831 $ 237,168 $ 239,247 Gross profit 30,143 28,631 27,818 33,525 Net income 8,599 7,839 5,999 11,402 Earnings per common share – basic 0.42 0.38 0.29 0.55 Earnings per common share – diluted 0.41 0.38 0.29 0.55

Significant Accounting Polici28

Significant Accounting Policies - Narrative (Details)	12 Months Ended
	Dec. 31, 2017USD ($)segmentcustomer	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)
Significant Accounting Policies [Line Items]
Number of business segments | segment	1
Percentage of copper use in relation to cost of goods sold	69.70%	65.20%	72.10%
Shipping and handling cost	$ 26,200,000	$ 24,100,000	$ 22,700,000
Certificates of deposit	$ 30,200,000	$ 0
Buildings and Improvements | Minimum
Significant Accounting Policies [Line Items]
Estimated useful lives of property plant and equipment (in years)	15 years
Buildings and Improvements | Maximum
Significant Accounting Policies [Line Items]
Estimated useful lives of property plant and equipment (in years)	39 years
Machinery and Equipment | Minimum
Significant Accounting Policies [Line Items]
Estimated useful lives of property plant and equipment (in years)	3 years
Machinery and Equipment | Maximum
Significant Accounting Policies [Line Items]
Estimated useful lives of property plant and equipment (in years)	20 years
Furniture and Fixtures | Minimum
Significant Accounting Policies [Line Items]
Estimated useful lives of property plant and equipment (in years)	3 years
Furniture and Fixtures | Maximum
Significant Accounting Policies [Line Items]
Estimated useful lives of property plant and equipment (in years)	15 years
Customer Concentration Risk | Sales Revenue, Net
Significant Accounting Policies [Line Items]
Customer concentration risk, number of customers | customer	2

Significant Accounting Polici29

Significant Accounting Policies - Summary of Allowance for Losses Progression (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Allowance for Doubtful Accounts Receivable [Roll Forward]
Beginning balance January 1	$ 2,036	$ 2,065	$ 2,065
(Write offs) of bad debts, net of collections of previous write offs	(8)	(29)	0
Ending balance at December 31	$ 2,028	$ 2,036	$ 2,065

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Inventory, Net [Abstract]
Raw materials	$ 32,928	$ 23,144
Work-in-process	22,753	20,889
Finished goods	88,497	81,764
Total	144,178	125,797
Adjust to LIFO cost	(51,813)	(32,523)
Inventory	$ 92,365	$ 93,274

Accrued Liabilities (Details)

Accrued Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Accrued Liabilities, Current [Abstract]
Sales volume discounts payable	$ 17,386	$ 13,590
Property taxes payable	3,802	3,932
Accrued salaries	8,318	6,198
Other accrued liabilities	5,499	4,266
Total accrued liabilities	$ 35,005	$ 27,986

Debt (Details)

Debt (Details)	12 Months Ended
	Dec. 31, 2017USD ($)bank	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)
Line of Credit Facility [Line Items]
Debt outstanding	$ 0	$ 0
Number of banks to which the Company is party to a credit agreement | bank	2
Calculated maximum borrowings	$ 150,000,000
Available increase in borrowings under credit agreement	100,000,000
Outstanding borrowings	0
Letters of credit outstanding	1,300,000
Remaining borrowing capacity	148,700,000
Total interest paid	200,000	200,000	$ 300,000
Total interest capitalized	$ 0	$ 0	$ 0
Minimum | Credit Agreement
Line of Credit Facility [Line Items]
Percentage of commitment fee	0.15%
Maximum | Credit Agreement
Line of Credit Facility [Line Items]
Percentage of commitment fee	0.30%
Credit Agreement Interest Rate Option One | London Interbank Offered Rate (LIBOR) | Minimum | Credit Agreement
Line of Credit Facility [Line Items]
Debt instrument basis spread on variable rate	0.875%
Credit Agreement Interest Rate Option One | London Interbank Offered Rate (LIBOR) | Maximum | Credit Agreement
Line of Credit Facility [Line Items]
Debt instrument basis spread on variable rate	1.75%
Credit Agreement Interest Rate Option Two | Minimum | Credit Agreement
Line of Credit Facility [Line Items]
Debt instrument basis spread on base rate	0.00%
Credit Agreement Interest Rate Option Two | Maximum | Credit Agreement
Line of Credit Facility [Line Items]
Debt instrument basis spread on base rate	0.25%
Credit Agreement Interest Rate Option Two | London Interbank Offered Rate (LIBOR) | Credit Agreement
Line of Credit Facility [Line Items]
Debt instrument basis spread on variable rate	1.00%
Credit Agreement Interest Rate Option Two | Federal Funds Rate | Credit Agreement
Line of Credit Facility [Line Items]
Debt instrument basis spread on variable rate	0.50%

Income Taxes - Narrative (Detai

Income Taxes - Narrative (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Provisional tax benefit for impact of 2017 Tax Act	$ 13,500,000
Percent reduction of effective tax rate due to Qualified Domestic Production Activities	3.10%	3.40%	1.20%
Income tax payments	$ 30,000,000	$ 6,700,000	$ 14,000,000
Reserve for uncertain tax positions	$ 0	$ 0

Income Taxes - Summary of Incom

Income Taxes - Summary of Income Tax Expenses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Current:
Federal	$ 24,421	$ 17,139	$ 7,918
State	1,411	1,098	546
Deferred:
Federal	(13,289)	(905)	16,486
State	316	(357)	(171)
Total Income Tax Expense	$ 12,859	$ 16,975	$ 24,779

Income Taxes - Summary of Diffe

Income Taxes - Summary of Differences Between Provision for Income Taxes and Income Taxes Computed Using Federal Income Tax Rate (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Amount computed using the statutory rate	$ 27,956	$ 17,769	$ 25,334
State income taxes, net of federal tax benefit	1,166	482	244
Qualified domestic production activity deduction	(2,464)	(1,712)	(859)
Effect of 2018 deferred rate change	(13,463)	0	0
Other	(336)	436	60
Total Income Tax Expense	$ 12,859	$ 16,975	$ 24,779

Income Taxes - Summary of Net D

Income Taxes - Summary of Net Deferred Tax Liability (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Depreciation	$ (22,121)	$ (30,845)
Inventory	(486)	(5,807)
Allowance for doubtful accounts	457	738
Uniform capitalization rules	610	932
Other	541	1,009
Deferred income tax liability	$ (20,999)	$ (33,973)

Stock-Based Compensation - Sto

Stock-Based Compensation - Stock-based Compensation Expense by Type of Award (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	$ 2,498	$ 1,596	$ 802
Tax benefit on exercise of stock options	0	60	40
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	738	791	658
Stock appreciation rights (“SARs”)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	1,543	805	144
Stock grants
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	$ 217	$ 0	$ 0

Stock-Based Compensation - Nar

Stock-Based Compensation - Narrative (Details)	1 Months Ended	12 Months Ended
	May 31, 2017director$ / sharesshares	Dec. 31, 2017USD ($)$ / sharesshares	Dec. 31, 2016USD ($)$ / sharesshares	Dec. 31, 2015USD ($)$ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option vested period		5 years
Stock option expiration period		10 years
Options available to be granted | shares		592,300
Weighted average grant date fair value of options (in usd per share) | $ / shares	$ 43.40	$ 12.46	$ 10.64	$ 9.25
Total intrinsic value of options exercised		$ 2,200,000	$ 500,000	$ 700,000
Total unrecognized compensation cost related to non-vested stock options		$ 1,200,000
Weighted average period of compensation cost		2 years 8 months
Stock granted to non-employee directors (in shares) | shares	1,000	80,000
Number of non-employee directors | director	5
Stock appreciation rights (“SARs”)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option vested period		5 years
Stock option expiration period		10 years
Weighted average period of compensation cost		3 years 2 months 12 days
Liability balance		$ 2,500,000	$ 1,200,000
Stock appreciation rights outstanding (in shares) | shares		366,900	226,500
Weighted average grant date fair value of SARs (in usd per share) | $ / shares		$ 16.09	$ 13.36	$ 7.33
Intrinsic value of SARs exercised		$ 300,000		$ 0
Total unrecognized compensation cost related to non-vested SARs		$ 3,500,000

Stock-Based Compensation - Sum

Stock-Based Compensation - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	12 Months Ended
	May 31, 2017	Dec. 31, 2017
Number of Shares
Number of shares outstanding, beginning balance		351,400
Number of shares granted	1,000	80,000
Number of shares exercised		(91,500)
Number of shares outstanding, ending balance		339,900
Number of shares vested and exercisable		146,899
Weighted Average Exercise Price
Weighted average exercise price outstanding, beginning balance (in usd per share)		$ 31.28
Weighted average exercise price, granted (in usd per share)		41.95
Weighted average exercise price, exercised (in usd per share)		21.06
Weighted average exercise price outstanding, ending balance (in usd per share)		36.55
Weighted average exercise price, vested and exercisable (in usd per share)		$ 33.36
Weighted average remaining contractual term, ending balance		6 years 9 months 7 days
Weighted average remaining contractual term, vested and exercisable		5 years
Aggregate intrinsic value ending balance		$ 4,258
Aggregate intrinsic value, vested and exercisable		$ 2,334

Stock-Based Compensation - S40

Stock-Based Compensation - Summary of Stock Appreciation Rights Activity (Details) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2017USD ($)$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]
Vested and exercisable (in shares)	146,899
Stock appreciation rights (“SARs”)
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]
Beginning balance (in shares)	226,500
Granted (in shares)	174,500
Exercised (in shares)	(21,300)
Forfeited/Canceled (in shares)	(12,800)
Ending balance (in shares)	366,900
Vested and exercisable (in shares)	67,200
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract]
Beginning balance (in dollars per share) | $ / shares	$ 37.97
Granted (in dollars per share) | $ / shares	41.95
Exercised (in dollars per share) | $ / shares	38.49
Forfeited/Canceled (in dollars per share) | $ / shares	41.36
Ending balance (in dollars per share) | $ / shares	39.73
Vested and exercisable (in dollars per share) | $ / shares	$ 39.87
Outstanding, weighted average contractual term (in years)	8 years 2 months 12 days
Vested and exercisable, weighted average contractual term (in years)	7 years
Outstanding, aggregate intrinsic value | $	$ 3,274
Vested and exercisable, aggregate intrinsic value | $	$ 590

Stock-Based Compensation - S41

Stock-Based Compensation - Stock Options and Stock Appreciation Rights Valuation Assumptions (Details)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rate (as a percent)	1.84%	1.46%	1.22%
Expected dividend yield (as a percent)	0.19%	0.23%	0.25%
Expected volatility (as a percent)	30.80%	32.92%	31.90%
Expected lives (in years)	5 years	5 years	5 years
Stock appreciation rights (“SARs”)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rate (as a percent)	2.01%	1.53%	1.39%
Expected dividend yield (as a percent)	0.16%	0.18%	0.22%
Expected volatility (as a percent)	31.90%	33.25%	30.30%
Expected lives (in years)	3 years 2 months 12 days	3 years 4 months 15 days	3 years 1 month 29 days

Earnings Per Share - Computati

Earnings Per Share - Computation of Basic and Diluted Net Earnings (Loss) Per Share (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Numerator:
Net income	$ 28,488	$ 13,964	$ 10,933	$ 13,632	$ 11,402	$ 5,999	$ 7,839	$ 8,599	$ 67,017	$ 33,839	$ 47,605
Denominator:
Denominator for basic earnings per share – weighted average shares									20,767	20,704	20,713
Effect of dilutive securities:
Employee stock options (in shares)									80	69	74
Denominator for diluted earnings per share – weighted average shares									20,847	20,773	20,787

Earnings Per Share - Anti-dilu

Earnings Per Share - Anti-dilutive Excluded from Diluted Earnings Per Share (Details) - $ / shares shares in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Earnings Per Share [Abstract]
Weighted average anti-dilutive stock options (in shares)	125	143	96
Weighted average exercise price per share (in usd per share)	$ 45.74	$ 40.39	$ 43.43

Stockholders' Equity (Details)

Stockholders' Equity (Details) - shares	3 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2017	Dec. 31, 2016
Equity [Abstract]
Repurchase of common stock authorized remaining (shares)		1,132,946
Repurchase of common stock (shares)	92,804	0	0

Encore Wire Corporation 401(k45

Encore Wire Corporation 401(k) Profit Sharing Plan (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Defined Contribution Plan [Abstract]
Matching contributions made	$ 1.9	$ 1.9	$ 1.5

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Related Party Transactions [Abstract]
Purchases from related parties	$ 10.3	$ 13.4

Quarterly Financial Informati47

Quarterly Financial Information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Quarterly Financial Information Disclosure [Abstract]
Net sales	$ 301,292	$ 292,030	$ 291,534	$ 279,392	$ 239,247	$ 237,168	$ 238,831	$ 225,544	$ 1,164,248	$ 940,790	$ 1,017,622
Gross profit	42,011	39,087	35,872	39,205	33,525	27,818	28,631	30,143	156,175	120,117	136,722
Net income	$ 28,488	$ 13,964	$ 10,933	$ 13,632	$ 11,402	$ 5,999	$ 7,839	$ 8,599	$ 67,017	$ 33,839	$ 47,605
Earnings per common share - basic (in usd per share)	$ 1.37	$ 0.67	$ 0.53	$ 0.66	$ 0.55	$ 0.29	$ 0.38	$ 0.42	$ 3.23	$ 1.63	$ 2.30
Earnings per common share - diluted (in usd per share)	$ 1.36	$ 0.67	$ 0.52	$ 0.65	$ 0.55	$ 0.29	$ 0.38	$ 0.41	$ 3.21	$ 1.63	$ 2.29