Document
Document | 3 Months Ended | |
Mar. 29, 2015 | 4-May-15 | |
Entity [Abstract] | ||
Entity Registrant Name | MASONITE INTERNATIONAL CORPORATION | |
Entity Central Index Key | 893691 | |
Current Fiscal Year End Date | -2 | |
Entity Filer Category | Non-accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | 29-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | FALSE | |
Entity Common Stock, Shares Outstanding | 30,185,759 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 |
Statement of Comprehensive Income [Abstract] | ||
Net sales | $434,465 | $422,460 |
Cost of goods sold | 361,156 | 369,474 |
Gross profit | 73,309 | 52,986 |
Selling, general and administration expenses | 58,161 | 57,775 |
Restructuring costs | 2,356 | 721 |
Operating income (loss) | 12,792 | -5,510 |
Interest expense (income), net | 11,753 | 9,993 |
Loss on extinguishment of debt | 28,046 | 0 |
Other expense (income), net | -1,184 | 181 |
Income (loss) from continuing operations before income tax expense (benefit) | -25,823 | -15,684 |
Income tax expense (benefit) | 3,264 | 19 |
Income (loss) from continuing operations | -29,087 | -15,703 |
Income (loss) from discontinued operations, net of tax | -229 | -142 |
Net income (loss) | -29,316 | -15,845 |
Less: net income (loss) attributable to non-controlling interest | 1,736 | 741 |
Net income (loss) attributable to Masonite | -31,052 | -16,586 |
Earnings (loss) per common share attributable to Masonite: | ||
Basic earnings per common share attributable to Masonite (in dollars per share) | ($1.03) | ($0.56) |
Diluted earnings per common share attributable to Masonite (in dollars per share) | ($1.03) | ($0.56) |
Earnings (loss) per common share from continuing operations attributable to Masonite: | ||
Basic (in dollars per share) | ($1.02) | ($0.56) |
Diluted (in dollars per share) | ($1.02) | ($0.56) |
Other comprehensive income (loss): | ||
Foreign exchange gain (loss) | -35,140 | -7,485 |
Amortization of actuarial net losses | 220 | 0 |
Income tax benefit (expense) related to other comprehensive income (loss) | -87 | 0 |
Other comprehensive income (loss), net of tax: | -35,007 | -7,485 |
Comprehensive income (loss) | -64,323 | -23,330 |
Less: comprehensive income (loss) attributable to non-controlling interest | 1,051 | 270 |
Comprehensive income (loss) attributable to Masonite | ($65,374) | ($23,600) |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Mar. 29, 2015 | Dec. 28, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $90,101 | $192,037 |
Restricted cash | 13,177 | 13,187 |
Accounts receivable, net | 242,671 | 241,721 |
Inventories, net | 228,555 | 222,732 |
Prepaid expenses | 23,283 | 21,103 |
Income taxes receivable | 1,672 | 1,796 |
Current deferred income taxes | 17,518 | 20,767 |
Total current assets | 616,977 | 713,343 |
Property, plant and equipment, net | 555,134 | 576,234 |
Investment in equity investees | 7,552 | 8,827 |
Goodwill | 98,167 | 99,199 |
Intangible assets, net | 194,339 | 203,372 |
Long-term deferred income taxes | 19,135 | 20,697 |
Other assets, net | 23,567 | 24,879 |
Total assets | 1,514,871 | 1,646,551 |
Current liabilities: | ||
Accounts payable | 95,504 | 98,199 |
Accrued expenses | 114,268 | 137,681 |
Income taxes payable | 1,686 | 1,361 |
Total current liabilities | 211,458 | 237,241 |
Long-term debt | 475,000 | 511,920 |
Long-term deferred income taxes | 103,191 | 107,777 |
Other liabilities | 52,005 | 54,114 |
Total liabilities | 841,654 | 911,052 |
Commitments and Contingencies (Note 9) | ||
Equity: | ||
Share capital: unlimited shares authorized, no par value, 30,143,534 and 30,015,321 shares issued and outstanding as of March 29, 2015, and December 28, 2014, respectively. | 659,303 | 657,292 |
Additional paid-in capital | 226,448 | 225,918 |
Accumulated deficit | -128,569 | -97,517 |
Accumulated other comprehensive income (loss) | -110,581 | -76,259 |
Total equity attributable to Masonite | 646,601 | 709,434 |
Equity attributable to non-controlling interests | 26,616 | 26,065 |
Total equity | 673,217 | 735,499 |
Total liabilities and equity | $1,514,871 | $1,646,551 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) | Mar. 29, 2015 | Dec. 28, 2014 |
Statement of Financial Position [Abstract] | ||
Shares issued | 30,143,534 | 30,015,321 |
Shares outstanding | 30,143,534 | 30,015,321 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Equity (USD $) | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) | Total Equity Attributable to Masonite | Equity Attributable to Noncontrolling Interests |
In Thousands, except Share data, unless otherwise specified | |||||||
Opening Balance, Value at Dec. 29, 2013 | $825,562 | $646,196 | $230,306 | ($60,177) | ($19,601) | $796,724 | $28,838 |
Opening Balance, Shares at Dec. 29, 2013 | 29,085,021 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | -34,118 | -37,340 | -37,340 | 3,222 | |||
Other comprehensive income (loss), net of tax | -57,636 | -56,658 | -56,658 | -978 | |||
Dividends to non-controlling interests | -5,017 | -5,017 | |||||
Share based compensation expense | 9,605 | 9,605 | 9,605 | ||||
Common shares issued for delivery of share based awards, Shares | 650,892 | ||||||
Common shares issued for delivery of share based awards, Value | 0 | 6,996 | -6,996 | 0 | |||
Common shares issued | 279,408 | ||||||
Common shares issued under employee stock purchase plan | 263 | 4,100 | -3,837 | 263 | |||
Common shares withheld to cover income taxes payable due to delivery of share based awards | -3,160 | -3,160 | -3,160 | ||||
Ending Balance, Value at Dec. 28, 2014 | 735,499 | 657,292 | 225,918 | -97,517 | -76,259 | 709,434 | 26,065 |
Ending Balance, Shares at Dec. 28, 2014 | 30,015,321 | 30,015,321 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | -29,316 | -31,052 | -31,052 | 1,736 | |||
Other comprehensive income (loss), net of tax | -35,007 | -34,322 | -34,322 | -685 | |||
Dividends to non-controlling interests | -500 | -500 | |||||
Share based compensation expense | 2,379 | 2,379 | 2,379 | ||||
Common shares issued for delivery of share based awards, Shares | 121,033 | ||||||
Common shares issued for delivery of share based awards, Value | 0 | 1,561 | -1,561 | 0 | |||
Common shares issued | 7,180 | ||||||
Common shares issued under employee stock purchase plan | 301 | 450 | 149 | 301 | |||
Common shares withheld to cover income taxes payable due to delivery of share based awards | -139 | -139 | -139 | ||||
Ending Balance, Value at Mar. 29, 2015 | $673,217 | $659,303 | $226,448 | ($128,569) | ($110,581) | $646,601 | $26,616 |
Ending Balance, Shares at Mar. 29, 2015 | 30,143,534 | 30,143,534 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 |
Cash flows from operating activities: | ||
Net income (loss) | ($29,316) | ($15,845) |
Adjustments to reconcile net income (loss) to net cash flow provided by (used in) operating activities, net of acquisitions: | ||
Loss (income) from discontinued operations, net of tax | 229 | 142 |
Loss on extinguishment of debt | 28,046 | 0 |
Depreciation | 15,306 | 15,446 |
Amortization | 5,011 | 5,691 |
Share based compensation expense | 2,379 | 2,283 |
Deferred income taxes | 1,765 | -1,050 |
Unrealized foreign exchange loss (gain) | -991 | 287 |
Share of loss (income) from equity investees, net of tax | -165 | -242 |
Dividend from equity investee | 1,440 | 0 |
Pension and post-retirement expense (funding), net | -1,407 | -924 |
Non-cash accruals and interest | -6 | -426 |
Loss (gain) on sale of property, plant and equipment | -56 | 1,087 |
Accounts receivable | -8,312 | -19,576 |
Inventories | -11,956 | -16,295 |
Prepaid expenses | -2,950 | -1,203 |
Accounts payable and accrued expenses | -17,116 | 19,527 |
Other assets and liabilities | -1,868 | 497 |
Net cash flow provided by (used in) operating activities | -19,967 | -10,601 |
Cash flows from investing activities: | ||
Proceeds from sale of property, plant and equipment | 279 | 274 |
Additions to property, plant and equipment | -10,190 | -8,353 |
Cash used in acquisitions, net of cash acquired | 0 | -50,342 |
Restricted cash | 0 | 524 |
Other investing activities | -830 | -282 |
Net cash flow provided by (used in) investing activities | -10,741 | -58,179 |
Cash flows from financing activities: | ||
Proceeds from issuance of long-term debt | 475,000 | 138,688 |
Repayments of long-term debt | -500,000 | 0 |
Payments of long-term debt extinguishment costs | -31,691 | 0 |
Payments of long-term debt extinguishment costs | -6,863 | -1,925 |
Minimum tax withholding on share based awards | -139 | -115 |
Distributions to non-controlling interests | -500 | -563 |
Net cash flow provided by (used in) financing activities | -64,193 | 136,085 |
Net foreign currency translation adjustment on cash | -7,035 | -1,914 |
Increase (decrease) in cash and cash equivalents | -101,936 | 65,391 |
Cash and cash equivalents, beginning of period | 192,037 | 100,873 |
Cash and cash equivalents, at end of period | $90,101 | $166,264 |
Business_Overview_and_SIgnific
Business Overview and SIgnificant Accounting Policies | 3 Months Ended |
Mar. 29, 2015 | |
Accounting Policies [Abstract] | |
Business Overview and Significant Accounting Policies | Business Overview and Significant Accounting Policies |
Unless we state otherwise or the context otherwise requires, references to “Masonite,” “we,” “our,” “us” and the “Company” in these notes to the condensed consolidated financial statements refer to Masonite International Corporation and its subsidiaries. | |
Description of Business | |
Masonite International Corporation is one of the largest manufacturers of doors in the world, with significant market share in both interior and exterior door products. Masonite operates 62 manufacturing locations in 10 countries and sells doors to customers throughout the world, including the United States, Canada, the United Kingdom and France. | |
Basis of Presentation | |
We prepare these unaudited condensed consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and applicable rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Accordingly, they do not include all of the information and notes required by GAAP for annual financial statements. In the opinion of management, all adjustments consisting of normal and recurring entries considered necessary for a fair presentation of the results for the interim periods presented have been included. All significant intercompany balances and transactions have been eliminated. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect reported amounts in the financial statements and accompanying notes. These estimates are based on information available as of the date of the unaudited condensed consolidated financial statements; therefore, actual results could differ from those estimates. Interim results are not necessarily indicative of the results for a full year. | |
These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the fiscal year ended December 28, 2014, as filed with the SEC. There have been no changes in the significant accounting policies from those that were disclosed in the 2014 audited consolidated financial statements. | |
Our fiscal year is the 52- or 53-week period ending on the Sunday closest to December 31. In a 52-week year, each fiscal quarter consists of 13 weeks. For ease of disclosure, the 13-week periods are referred to as three-month periods. Our 2015 fiscal year, which ends on January 3, 2016, will contain 53 weeks of operating results, with the additional week occurring in the fourth quarter. | |
Changes in Accounting Standards and Policies | |
Adoption of Recent Accounting Pronouncements | |
In April 2014, the FASB issued ASU 2014-08, "Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity," which amends the definition of a discontinued operation in ASC 205-20 and requires entities to provide additional disclosures about discontinued operations as well as disposal transactions that do not meet the discontinued operations criteria. The FASB issued the ASU to provide more decision-useful information and to make it more difficult for a disposal transaction to qualify as a discontinued operation. This ASU is effective for annual reporting periods beginning after December 15, 2014, and interim periods within those annual periods; early application is permitted. The adoption of this standard did not have a material impact on the presentation of our financial statements. | |
Other Recent Accounting Pronouncements not yet Adopted | |
In April 2015, the FASB issued ASU 2015-04, “Practical Expedient for the Measurement Date of an Employer’s Defined Benefit Obligation and Plan Assets.” This ASU provides a practical expedient option to entities that have defined benefit plans and have a fiscal year end that does not coincide with a calendar month end. This ASU allows an entity to elect to measure defined benefit plan assets and obligations using the calendar month-end that is closest to its fiscal year end. This ASU is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2015, and interim periods within those annual periods; early adoption is permitted. We are in the process of evaluating this guidance to determine the impact it will have on our financial statements. | |
In April 2015, the FASB issued ASU 2015-03, “Simplifying the Presentation of Debt Issuance Costs.” This ASU requires capitalized debt issuance costs to be presented as a reduction to the carrying value of debt instead of being classified as a deferred charge, as currently required. This ASU is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2015, and interim periods within those annual periods; early adoption is permitted and retroactive application is required. We are in the process of evaluating this guidance to determine the impact it will have on our financial statements. | |
In February 2015, the FASB issued ASU 2015-02, “Amendments to the Consolidation Analysis,” which amended ASC 810, “Consolidation.” This ASU modifies the evaluation of whether limited partnerships are variable interest entities (“VIEs”) and affects the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships. This ASU is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2015, and interim periods within those annual periods; early adoption is permitted. We are in the process of evaluating this guidance to determine the impact it will have on our financial statements. | |
In August 2014, the FASB issued ASU 2014-15, "Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern," which amended ASC 205-40, "Presentation of Financial Statements - Going Concern". This ASU requires management to perform interim and annual assessments of an entity's ability to continue as a going concern within one year of the date of issuance of the entity's financial statements and to provide related footnote disclosures. This ASU is effective for annual reporting periods ending after December 15, 2016, and interim periods thereafter; early adoption is permitted. We are in the process of evaluating this guidance to determine the impact it will have on our financial statements. | |
In May 2014, the FASB issued ASU 2014-09, "Revenue From Contracts With Customers," which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The core principle of the revenue model is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This ASU is effective for annual reporting periods beginning after December 15, 2016, and interim periods within those annual periods; early application is not permitted. In April 2015, the FASB voted for a one year deferral of the effective date of ASU 2014-09 and issued an exposure draft. If approved, the new guidance will be effective for annual and interim periods beginning on or after December 15, 2017. We are in the process of evaluating this guidance to determine the impact it will have on our financial statements. |
Acquisitions
Acquisitions | 3 Months Ended | |||||||||||
Mar. 29, 2015 | ||||||||||||
Business Combinations [Abstract] | ||||||||||||
Acquisitions | Acquisitions | |||||||||||
2014 Acquisitions | ||||||||||||
On December 1, 2014, we completed the acquisition of Harring Doors Corporation (“Harring”), headquartered in London, Ontario, for total consideration of $3.9 million, net of cash acquired. We acquired 100% of the equity interests in Harring through the purchase of all of the outstanding shares of common stock at the acquisition date. Harring manufactures interior and exterior stile and rail wood doors for architectural door applications at its facility in London, Ontario. The excess purchase price over the fair value of net assets acquired of $2.0 million was allocated to goodwill. The goodwill principally represents anticipated synergies to be gained from the integration into our North American architectural wood door business. This goodwill is not deductible for tax purposes and relates to the North America segment. The acquisition of Harring complements our architectural wood door business. | ||||||||||||
On February 24, 2014, we completed the acquisition of Door-Stop International Limited ("Door-Stop") for total consideration of $50.4 million, net of cash acquired. We acquired 100% of the equity interests in Door-Stop through the purchase of all outstanding shares of common stock on the acquisition date. Door-Stop is based in Nottinghamshire, United Kingdom, utilizes an internet-based ordering process and manufactures exterior door sets for the residential repair and renovation markets. The excess purchase price over the fair value of net tangible and intangible assets acquired of $20.4 million was allocated to goodwill. The goodwill principally represents the future expected value of the operations of the business. This goodwill is not deductible for tax purposes and relates to the Europe, Asia and Latin America segment. The Door-Stop acquisition complements our existing global fiberglass business. | ||||||||||||
The aggregate consideration paid for acquisitions during 2014 was as follows: | ||||||||||||
(In thousands) | Harring Acquisition | Door-Stop Acquisition | Total 2014 Acquisitions | |||||||||
Accounts receivable | $ | 1,180 | $ | 2,648 | $ | 3,828 | ||||||
Inventory | 443 | 2,665 | 3,108 | |||||||||
Property, plant and equipment | 1,167 | 4,303 | 5,470 | |||||||||
Goodwill | 1,951 | 20,359 | 22,310 | |||||||||
Intangible assets | — | 28,776 | 28,776 | |||||||||
Accounts payable and accrued expenses | (731 | ) | (3,492 | ) | (4,223 | ) | ||||||
Other assets and liabilities, net | (109 | ) | (4,904 | ) | (5,013 | ) | ||||||
Cash consideration, net of cash acquired | $ | 3,901 | $ | 50,355 | $ | 54,256 | ||||||
The fair values of tangible assets acquired and liabilities assumed from the Harring acquisition were based upon preliminary calculations and valuations and the estimates and assumptions for the acquisition are subject to change as we obtain additional information during the measurement period (up to one year from the acquisition date). The primary areas of the preliminary estimates which are not yet finalized relate to certain tangible assets acquired and liabilities assumed, including goodwill. The fair values of intangible assets acquired are based on management’s estimates and assumptions including variations of the income approach, the cost approach and the market approach. Intangible assets acquired from Door-Stop consist of customer relationships and are being amortized over the weighted average amortization period of 9.9 years. The intangible assets are not expected to have any residual value. The gross contractual value of acquired trade receivables was $1.2 million and $2.8 million for the Harring and Door-Stop acquisitions, respectively. | ||||||||||||
The following schedule represents the amount of revenue and earnings from the Door-Stop acquisition which have been included in the condensed consolidated statements of comprehensive income (loss) for the periods indicated subsequent to the acquisition date. Amounts of revenue and earnings included in the condensed consolidated statements of comprehensive income (loss) for Harring were not material for the three months ended March 29, 2015. | ||||||||||||
Three Months Ended | ||||||||||||
(In thousands) | 29-Mar-15 | 30-Mar-14 | ||||||||||
Net sales | $ | 11,866 | $ | 5,009 | ||||||||
Net income (loss) attributable to Masonite | 1,126 | 654 | ||||||||||
Pro Forma Information | ||||||||||||
The following unaudited pro forma financial information represents the condensed consolidated financial information as if the acquisitions had been included in our condensed consolidated results beginning on the first day of the fiscal year prior to their respective acquisition dates. Pro forma information relating to the Harring acquisition has been excluded as it is not materially different from amounts reported. The pro forma results have been calculated after adjusting the results of the acquired entity to remove intercompany transactions and transaction costs incurred and to reflect the additional depreciation and amortization that would have been charged assuming the fair value adjustments to property, plant and equipment and intangible assets had been applied on the first day of the fiscal year prior to acquisition, together with the consequential tax effects. The pro forma results do not reflect any cost savings, operating synergies or revenue enhancements that the combined company may achieve as a result of the acquisition; the costs to combine the companies' operations; or the costs necessary to achieve these costs savings, operating synergies and revenue enhancements. The pro forma results do not necessarily reflect the actual results of operations of the combined companies' under our ownership and operation. | ||||||||||||
Three Months Ended March 30, 2014 | ||||||||||||
(In thousands, except per share amounts) | Masonite | Door-Stop | Pro Forma | |||||||||
Net sales | $ | 422,460 | $ | 6,659 | $ | 429,119 | ||||||
Net income (loss) attributable to Masonite | (16,586 | ) | 624 | (15,962 | ) | |||||||
Basic earnings (loss) per common share | $ | (0.56 | ) | $ | (0.55 | ) | ||||||
Diluted earnings (loss) per common share | $ | (0.56 | ) | $ | (0.55 | ) | ||||||
In the table above, amounts under the Door-Stop heading reflect pro forma results for the period prior to acquisition through the acquisition date of February 24, 2014. All actual results from Door-Stop subsequent to the acquisition date are reflected under the Masonite heading above. |
Goodwill_and_Intangbile_Assets
Goodwill and Intangbile Assets | 3 Months Ended | |||||||||||||||
Mar. 29, 2015 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||
Goodwill and Intangible Assets | Goodwill and Intangible Assets | |||||||||||||||
Changes in the carrying amount of goodwill were as follows as of the dates indicated: | ||||||||||||||||
(In thousands) | North America Segment | Europe, Asia and Latin America Segment | Total | |||||||||||||
December 28, 2014 | 79,818 | 19,381 | 99,199 | |||||||||||||
Foreign exchange fluctuations | (224 | ) | (808 | ) | (1,032 | ) | ||||||||||
March 29, 2015 | $ | 79,594 | $ | 18,573 | $ | 98,167 | ||||||||||
The cost and accumulated amortization values of our intangible assets were as follows for the periods indicated: | ||||||||||||||||
March 29, 2015 | ||||||||||||||||
(In thousands) | Cost | Accumulated Amortization | Translation Adjustment | Net Book Value | ||||||||||||
Definite life intangible assets: | ||||||||||||||||
Customer relationships | $ | 107,381 | $ | (36,131 | ) | $ | (3,360 | ) | $ | 67,890 | ||||||
Patents | 29,162 | (15,339 | ) | (676 | ) | 13,147 | ||||||||||
Software | 29,132 | (20,259 | ) | (87 | ) | 8,786 | ||||||||||
Other | 9,457 | (6,984 | ) | (1,448 | ) | 1,025 | ||||||||||
175,132 | (78,713 | ) | (5,571 | ) | 90,848 | |||||||||||
Indefinite life intangible assets: | ||||||||||||||||
Trademarks and tradenames | 111,053 | — | (7,562 | ) | 103,491 | |||||||||||
Total intangible assets | $ | 286,185 | $ | (78,713 | ) | $ | (13,133 | ) | $ | 194,339 | ||||||
December 28, 2014 | ||||||||||||||||
(In thousands) | Cost | Accumulated Amortization | Translation Adjustment | Net Book Value | ||||||||||||
Definite life intangible assets: | ||||||||||||||||
Customer relationships | $ | 107,381 | $ | (33,181 | ) | $ | (2,360 | ) | $ | 71,840 | ||||||
Patents | 28,630 | (14,696 | ) | (308 | ) | 13,626 | ||||||||||
Software | 28,832 | (19,322 | ) | 63 | 9,573 | |||||||||||
Other | 9,457 | (6,810 | ) | (1,426 | ) | 1,221 | ||||||||||
174,300 | (74,009 | ) | (4,031 | ) | 96,260 | |||||||||||
Indefinite life intangible assets: | ||||||||||||||||
Trademarks and tradenames | 111,053 | — | (3,941 | ) | 107,112 | |||||||||||
Total intangible assets | $ | 285,353 | $ | (74,009 | ) | $ | (7,972 | ) | $ | 203,372 | ||||||
Amortization of intangible assets was $4.7 million and $4.4 million for the three months ended March 29, 2015, and March 30, 2014, respectively. Amortization expense is classified within selling, general and administration expenses in the condensed consolidated statements of comprehensive income (loss). | ||||||||||||||||
The estimated future amortization of intangible assets with definite lives as of March 29, 2015, is as follows: | ||||||||||||||||
(In thousands) | ||||||||||||||||
Fiscal year: | ||||||||||||||||
2015 (remaining nine months) | $ | 13,966 | ||||||||||||||
2016 | 17,248 | |||||||||||||||
2017 | 15,149 | |||||||||||||||
2018 | 11,885 | |||||||||||||||
2019 | 11,505 | |||||||||||||||
Accounts_Receivable
Accounts Receivable | 3 Months Ended |
Mar. 29, 2015 | |
Receivables [Abstract] | |
Accounts Receivable | Accounts Receivable |
Our customers consist mainly of wholesale distributors, dealers, and retail home centers. Our ten largest customers accounted for 49.3% and 48.8% of total accounts receivable as of March 29, 2015, and December 28, 2014, respectively. Our largest customer, The Home Depot, Inc., accounted for more than 10% of the consolidated gross accounts receivable balance as of March 29, 2015, and December 28, 2014. No other individual customer accounted for greater than 10% of the consolidated gross accounts receivable balance at either March 29, 2015, or December 28, 2014. The allowance for doubtful accounts balance was $2.6 million as of both March 29, 2015, and December 28, 2014. | |
We maintain accounts receivable sales programs with third parties (the "AR Sales Programs"). Under the AR Sales Programs, we can transfer ownership of eligible trade accounts receivable of certain customers. Receivables are sold outright to third parties who assume the full risk of collection, without recourse to us in the event of a loss. Transfers of receivables under these programs are accounted for as sales. Proceeds from the transfers reflect the face value of the accounts receivable less a discount. Receivables sold under the AR Sales Programs are excluded from trade accounts receivable in the condensed consolidated balance sheets and are included in cash flows from operating activities in the condensed consolidated statements of cash flows. The discounts on the sales of trade accounts receivable sold under the AR Sales Programs were not material for any of the periods presented and were recorded to selling, general and administration expense within the condensed consolidated statements of comprehensive income (loss). |
Inventories
Inventories | 3 Months Ended | |||||||
Mar. 29, 2015 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Inventories | Inventories | |||||||
The amounts of inventory on hand were as follows as of the dates indicated: | ||||||||
(In thousands) | March 29, | December 28, | ||||||
2015 | 2014 | |||||||
Raw materials | $ | 164,519 | $ | 159,763 | ||||
Finished goods | 70,494 | 69,517 | ||||||
Provision for obsolete or aged inventory | (6,458 | ) | (6,548 | ) | ||||
Inventories, net | $ | 228,555 | $ | 222,732 | ||||
Property_Plant_and_Equipment
Property, Plant and Equipment | 3 Months Ended | |||||||
Mar. 29, 2015 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Property, Plant and Equipment | Property, Plant and Equipment | |||||||
The carrying amounts of our property, plant and equipment and accumulated depreciation were as follows as of the dates indicated: | ||||||||
(In thousands) | March 29, | December 28, | ||||||
2015 | 2014 | |||||||
Land | $ | 43,462 | $ | 44,971 | ||||
Buildings | 165,049 | 170,344 | ||||||
Machinery and equipment | 527,197 | 530,599 | ||||||
Property, plant and equipment, gross | 735,708 | 745,914 | ||||||
Accumulated depreciation | (180,574 | ) | (169,680 | ) | ||||
Property, plant and equipment, net | $ | 555,134 | $ | 576,234 | ||||
Total depreciation expense was $15.3 million and $15.4 million in the three months ended March 29, 2015, and March 30, 2014, respectively. Depreciation expense is included primarily within cost of goods sold in the condensed consolidated statements of comprehensive income (loss). |
LongTerm_Debt
Long-Term Debt | 3 Months Ended | |||||||
Mar. 29, 2015 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Long-Term Debt | Long-Term Debt | |||||||
(In thousands) | March 29, | December 28, | ||||||
2015 | 2014 | |||||||
5.625% senior unsecured notes due 2023 | $ | 475,000 | $ | — | ||||
8.25% senior unsecured notes due 2021 | — | 500,000 | ||||||
Unamortized premium on 2021 Notes | — | 11,920 | ||||||
Total long-term debt | $ | 475,000 | $ | 511,920 | ||||
Interest expense related to our consolidated indebtedness under senior unsecured notes was $11.2 million and $9.5 million for the three months ended March 29, 2015, and March 30, 2014, respectively. | ||||||||
5.625% Senior Notes due 2023 | ||||||||
On March 23, 2015, we issued $475.0 million aggregate principal senior unsecured notes (the “2023 Notes”). The 2023 Notes were issued in a private placement for resale to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and to buyers outside the United States pursuant to Regulation S under the Securities Act. The 2023 Notes were issued without registration rights and are not listed on any securities exchange. The 2023 Notes were issued at par and bear interest at 5.625% per annum, payable in cash semiannually in arrears on March 15 and September 15 of each year and are due March 15, 2023. We received net proceeds of $468.1 million after deducting $6.9 million of transaction issuance costs. The transaction costs were capitalized as deferred financing costs (included in other assets) and are being amortized to interest expense over the term of the 2023 Notes using the effective interest method. The net proceeds from the 2023 Notes, together with available cash balances, were used to redeem the $500.0 million aggregate principal of 2021 Notes (as described below) and to pay related premiums, fees and expenses. | ||||||||
We may redeem the 2023 Notes, in whole or in part, at any time prior to March 15, 2018, at a price equal to 100% of the principal amount plus the applicable premium, plus accrued and unpaid interest, if any, to the date of redemption. The applicable premium means, with respect to a note at any date of redemption, the greater of (i) 1.00% of the then-outstanding principal amount of such note and (ii) the excess of (a) the present value at such date of redemption of (1) the redemption price of such note at March 15, 2018, plus (2) all remaining required interest payments due on such note through such date (excluding accrued but unpaid interest to the date of redemption), computed using a discount rate equal to the Treasury Rate plus 50 basis points, over (b) the principal amount of such note on such redemption date. We may also redeem the 2023 Notes, in whole or in part, at any time on or after March 15, 2018, at the applicable redemption prices specified under the indenture governing the 2023 Notes, plus accrued and unpaid interest, if any, to the date of redemption. If we experience certain changes of control or consummate certain asset sales and do not reinvest the net proceeds, we must offer to repurchase all of the 2023 Notes at a purchase price of 101.00% of their principal amount, plus accrued and unpaid interest, if any, to the repurchase date. | ||||||||
Obligations under the 2023 Notes are fully and unconditionally guaranteed, jointly and severally, on a senior unsecured basis, by certain of our directly or indirectly wholly-owned subsidiaries. | ||||||||
The indenture governing the 2023 Notes contains restrictive covenants that, among other things, limit our ability and the ability of our subsidiaries to: (i) incur additional debt and issue disqualified or preferred stock, (ii) make restricted payments, (iii) sell assets, (iv) create or permit restrictions on the ability of our restricted subsidiaries to pay dividends or make other distributions to the parent company, (v) create or incur certain liens, (vi) enter into sale and leaseback transactions, (vii) merge or consolidate with other entities and (viii) enter into transactions with affiliates. The foregoing limitations are subject to exceptions as set forth in the indenture governing the 2023 Notes. In addition, if in the future the 2023 Notes have an investment grade rating from at least two nationally recognized statistical rating organizations, certain of these covenants will be replaced with a less restrictive covenant. | ||||||||
The indenture governing the 2023 Notes contains customary events of default (subject in certain cases to customary grace and cure periods). As of March 29, 2015, we were in compliance with all covenants under the indenture governing the 2023 Notes. | ||||||||
8.25% Senior Notes due 2021 | ||||||||
On January 21, 2014, March 9, 2012, and April 15, 2011, we issued $125.0 million, $100.0 million and $275.0 million aggregate principal senior unsecured notes, respectively (the "2021 Notes"). All issuances of the 2021 Notes had the same terms, rights and obligations, and were issued in the same series. The 2021 Notes were issued in three private placements for resale to qualified institutional buyers pursuant to Rule 144A under the Securities Act and to buyers outside the United States pursuant to Regulation S under the Securities Act. The 2021 Notes were issued without registration rights and were not listed on any securities exchange. The 2021 Notes bore interest at 8.25% per annum, payable in cash semiannually in arrears on April 15 and October 15 of each year and were due April 15, 2021. We received net proceeds of $136.8 million, $101.5 million and $265.5 million in 2014, 2012 and 2011, respectively, after deducting $1.9 million, $2.0 million and $9.5 million of transaction issuance costs. The transaction costs were capitalized as deferred financing costs (included in other assets) and were being amortized to interest expense over the term of the 2021 Notes using the effective interest method. The 2021 Notes were issued at 108.75%, 103.50% and par in 2014, 2012 and 2011, respectively. The resulting premiums of $10.9 million and $3.5 million in 2014 and 2012, respectively, were being amortized to interest expense over the term of the 2021 Notes using the effective interest method. The net proceeds from the 2021 Notes were used to fund a $124.9 million return of capital to shareholders in 2011, in the amount of $4.54 per share; as well as the acquisitions of eight companies since 2011 for aggregate consideration of $297.5 million. The remaining proceeds from the 2021 Notes were used for general corporate purposes. | ||||||||
In conjunction with the closing of the 2023 Notes offering, the 2021 Notes were fully redeemed and considered extinguished as of March 23, 2015. Under the terms of the indenture governing the 2021 Notes, we paid the applicable premium, as described in the indenture, of $31.7 million. Additionally, the unamortized premium of $11.5 million and unamortized transaction costs of $7.8 million relating to the 2021 Notes were written off in conjunction with the extinguishment of the 2021 Notes. The resulting loss on extinguishment of debt was $28.0 million and is recorded as part of income (loss) from continuing operations before income tax expense (benefit) in the condensed consolidated statements of comprehensive income (loss). Additionally, the cash payment of interest accrued to, but not including, the redemption date was accelerated to the redemption date. | ||||||||
ABL Facility | ||||||||
In May 2011, we and certain of our subsidiaries, as borrowers, entered into a $125.0 million asset-based revolving credit facility (the "ABL Facility"). The borrowing base is calculated based on a percentage of the value of selected U.S. and Canadian accounts receivable and U.S. and Canadian inventory, less certain ineligible amounts. | ||||||||
Obligations under the ABL Facility are secured by a first priority security interest in substantially all of the current assets of Masonite and our subsidiaries. In addition, obligations under the ABL Facility are fully and unconditionally guaranteed, jointly and severally, on a senior unsecured basis, by certain of our directly or indirectly wholly-owned subsidiaries. | ||||||||
Borrowings under the ABL Facility will bear interest at a variable rate per annum equal to, at our option, (i) LIBOR, plus a margin ranging from 2.00% to 2.50% per annum, or (ii) the Base Rate (as defined in the ABL Facility agreement), plus a margin ranging from 1.00% to 1.50% per annum. | ||||||||
In addition to paying interest on any outstanding principal under the ABL Facility, we are required to pay a commitment fee in respect of unutilized commitments of 0.25% of the aggregate commitments under the ABL Facility if the average utilization is greater than 50% for any applicable period, and 0.375% of the aggregate commitments under the ABL Facility if the average utilization is less than or equal to 50% for any applicable period. We must also pay customary letter of credit fees and agency fees. | ||||||||
The ABL Facility contains various customary representations, warranties and covenants by us that, among other things, and subject to certain exceptions, restrict Masonite's ability and the ability of our subsidiaries to: (i) incur additional indebtedness, (ii) pay dividends on our common stock and make other restricted payments, (iii) make investments and acquisitions, (iv) engage in transactions with our affiliates, (v) sell assets, (vi) merge and (vii) create liens. As of March 29, 2015, and December 28, 2014, we were in compliance with all covenants under the credit agreement governing the ABL Facility and there were no amounts outstanding under the ABL Facility. | ||||||||
The ABL Facility was amended and restated on April 9, 2015. Refer to footnote 18, "Subsequent Events". |
Share_Based_Compensation_Plans
Share Based Compensation Plans | 3 Months Ended | |||||||||||||
Mar. 29, 2015 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||
Share Based Compensation Plans | Share Based Compensation Plans | |||||||||||||
Share-based compensation expense was $2.4 million and $2.3 million for the three months ended March 29, 2015, and March 30, 2014, respectively. As of March 29, 2015, the total remaining unrecognized compensation expense related to share based compensation amounted to $20.0 million, which will be amortized over the weighted average remaining requisite service period of 2.1 years. Share based compensation expense is recognized using a graded-method approach, or to a lesser extent a cliff-vesting approach, depending on the terms of the individual award and is classified within selling, general and administration expenses in the condensed consolidated statements of comprehensive income (loss). All share based awards are settled through issuance of new shares of our common stock. The share based award agreements contain restrictions on sale or transfer other than in limited circumstances. All other transfers would cause the share based awards to become null and void. | ||||||||||||||
Equity Incentive Plan | ||||||||||||||
Prior to July 9, 2012, we had a management equity incentive plan (the "2009 Plan"). The 2009 Plan required granting by June 9, 2012, equity instruments which upon exercise would result in management (excluding directors) owning 9.55% of our common equity (3,554,811 shares) on a fully diluted basis, after giving consideration to the potential exercise of warrants and the equity instruments granted to directors. Under the 2009 Plan, we were required to issue equity instruments to directors that represented 0.90% (335,004 shares) of the common equity on a fully diluted basis. The requirement for issuance to employees was satisfied in June 2012, and the requirement for issuance to directors was satisfied in July 2009. No awards have been granted under the 2009 Plan since May 30, 2012, and no future awards will be granted under the 2009 Plan; however, all outstanding awards under the 2009 Plan will continue to be governed by their existing terms. Aside from shares issuable for outstanding awards, there are no further shares of common stock available for future issuance under the 2009 Plan. | ||||||||||||||
On July 12, 2012, the Board of Directors adopted the Masonite International Corporation 2012 Equity Incentive Plan (the "2012 Plan"). The 2012 Plan was adopted because the Board believes awards granted will help to attract, motivate and retain employees and non-employee directors, align employee and stockholder interests and encourage a performance-based culture built on employee stock ownership. The 2012 Plan permits us to offer eligible directors, employees and consultants cash and share-based incentives, including stock options, stock appreciation rights, restricted stock, other share-based awards (including restricted stock units) and cash-based awards. The 2012 Plan is effective for 10 years from the date of its adoption. Awards granted under the 2012 Plan are at the discretion of the Human Resources and Compensation Committee of the Board of Directors. The Human Resources and Compensation Committee may grant any award under the 2012 Plan in the form of a performance compensation award. The 2012 Plan may be amended, suspended or terminated by the Board at any time; provided, that any amendment, suspension or termination which impairs the rights of a participant is subject to such participant's consent and; provided further, that any material amendments are subject to shareholder approval. Prior to June 21, 2013, the aggregate number of common shares that could be issued with respect to equity awards under the 2012 Plan could not exceed 1,500,000 shares plus the number of shares subject to existing grants under the 2009 Plan that may expire or be forfeited or cancelled. On June 21, 2013, the Board of Directors approved an increase of 500,000 common shares issuable under the 2012 Plan, bringing the total number of shares issuable under the 2012 Plan to 2,000,000 plus the number of shares subject to existing grants under the 2009 plan that may expire or be forfeited or cancelled. As of March 29, 2015, there were 1,731,944 shares of common stock available for future issuance under the 2012 Plan. | ||||||||||||||
Deferred Compensation Plan | ||||||||||||||
We offer to certain of our employees and directors a Deferred Compensation Plan ("DCP"). The DCP is an unfunded non-qualified deferred compensation plan that permits those certain employees and directors to defer a portion of their compensation to a future time. Eligible employees may elect to defer a portion of their base salary, bonus and/or restricted stock units and eligible directors may defer a portion of their director fees or restricted stock units. All contributions to the DCP on behalf of the participant are fully vested (other than restricted stock unit deferrals which remain subject to the vesting terms of the applicable equity incentive plan) and placed into a grantor trust, commonly referred to as a "rabbi trust." Although we are permitted to make matching contributions under the terms of the DCP, we have not elected to do so. The DCP invests the contributions in diversified securities from a selection of investments and the participants choose their investments and may periodically reallocate the assets in their respective accounts. Participants are entitled to receive the benefits in their accounts upon separation of service or upon a specified date, with benefits payable as a single lump sum or in annual installments. All plan investments are categorized as having Level 1 valuation inputs as established by the FASB’s Fair Value Framework. | ||||||||||||||
Assets of the rabbi trust, other than Company stock, are recorded at fair value and included in other assets in the condensed consolidated balance sheets. These assets in the rabbi trust are classified as trading securities and changes in their fair values are recorded in other income (loss) in the condensed consolidated statements of comprehensive income (loss). The liability relating to deferred compensation represents our obligation to distribute funds to the participants in the future and is included in other liabilities in the condensed consolidated balance sheets. As of March 29, 2015, the liability and asset relating to deferred compensation each had a fair value of $1.8 million. Any unfunded gain or loss relating to changes in the fair value of the deferred compensation liability is recognized in selling, general and administration expense in the condensed consolidated statements of comprehensive income (loss). | ||||||||||||||
As of March 29, 2015, participation in the deferred compensation plan is limited and no restricted stock awards have been deferred into the deferred compensation plan. | ||||||||||||||
Stock Appreciation Rights | ||||||||||||||
We have granted Stock Appreciation Rights ("SARs") to certain employees under both the 2009 Plan and the 2012 Plan, which entitle the recipient to the appreciation in value of a number of common shares over the exercise price over a period of time, each as specified in the applicable award agreement. The exercise price of any SAR granted may not be less than the fair market value of our common shares on the date of grant. The compensation expense for the SARs is measured based on the fair value of the SARs at the date of grant and is recognized over the requisite service period. The SARs vest over a maximum of four years, have a life of ten years and settle in common shares. It is assumed that all time-based SARs will vest. | ||||||||||||||
The total fair value of SARs vested was $0.4 million in both the three months ended March 29, 2015, and March 30, 2014. | ||||||||||||||
Three Months Ended March 29, 2015 | Stock Appreciation Rights | Aggregate Intrinsic Value (in thousands) | Weighted Average Exercise Price | Average Remaining Contractual Life (Years) | ||||||||||
Outstanding, beginning of period | 1,231,468 | $ | 48,516 | $ | 19.59 | 5.9 | ||||||||
Exercised | (141,772 | ) | 6,546 | 16.73 | ||||||||||
Cancelled | (800 | ) | 32.68 | |||||||||||
Outstanding, end of period | 1,088,896 | $ | 51,253 | $ | 19.97 | 5.7 | ||||||||
Exercisable, end of period | 852,059 | $ | 42,831 | $ | 16.73 | 5 | ||||||||
Three Months Ended March 30, 2014 | Stock Appreciation Rights | Aggregate Intrinsic Value (in thousands) | Weighted Average Exercise Price | Average Remaining Contractual Life (Years) | ||||||||||
Outstanding, beginning of period | 1,812,658 | $ | 59,525 | $ | 18.16 | 6.4 | ||||||||
Exercised | (130,186 | ) | 14.02 | |||||||||||
Cancelled | (16,210 | ) | 41.38 | |||||||||||
Outstanding, end of period | 1,666,262 | $ | 63,569 | $ | 18.22 | 6.2 | ||||||||
Exercisable, end of period | 1,308,842 | $ | 53,593 | $ | 15.42 | 5.5 | ||||||||
Restricted Stock Units | ||||||||||||||
We have granted Restricted Stock Units ("RSUs") to directors and certain employees under both the 2009 Plan and the 2012 Plan. The RSUs confer the right to receive shares of our common stock at a specified future date or when certain conditions are met. The compensation expense for the RSUs awarded is based on the fair value of the RSUs at the date of grant and is recognized over the requisite service period. The RSUs vest over a maximum of four years, and call for the underlying shares to be delivered no later than the fourth anniversary of the grant dates. It is assumed that all time-based RSUs will vest. | ||||||||||||||
Three Months Ended | ||||||||||||||
March 29, 2015 | March 30, 2014 | |||||||||||||
Total Restricted Stock Units Outstanding | Weighted Average Grant Date Fair Value | Total Restricted Stock Units Outstanding | Weighted Average Grant Date Fair Value | |||||||||||
Outstanding, beginning of period | 543,373 | $ | 34.56 | 618,963 | $ | 22.09 | ||||||||
Granted | 177,862 | — | 183,421 | |||||||||||
Delivered | (18,852 | ) | (7,669 | ) | ||||||||||
Withheld to cover (1) | (2,303 | ) | (2,020 | ) | ||||||||||
Cancelled | (1,445 | ) | (542 | ) | ||||||||||
Outstanding, end of period | 698,635 | $ | 37.43 | 792,153 | $ | 29.45 | ||||||||
____________ | ||||||||||||||
(1) A portion of the vested RSUs delivered were net share settled to cover the minimum statutory requirements for income and other employment taxes, at the individual participant’s election. We remit the equivalent cash to the appropriate taxing authorities. These net share settlements had the effect of share repurchases by us as we reduced and retired the number of shares that would have otherwise been issued as a result of the vesting. | ||||||||||||||
Approximately one-half of the RSUs granted during the three months ended March 29, 2015, vest at specified future dates, with only service requirements, while the remaining portion of the RSUs vest based on both performance and service requirements. The value of RSUs granted in the three months ended March 29, 2015, was $10.9 million and is being recognized over the weighted average requisite service period of 1.8 years. During the three months ended March 29, 2015, there were 21,155 RSUs vested at a fair value of $1.2 million. | ||||||||||||||
Warrants | ||||||||||||||
On June 9, 2009, we issued 5,833,335 warrants, representing the right to purchase our common shares for $55.31 per share, subsequently adjusted to $50.77 per share for the $4.54 per share return of capital in 2011. Of these, 3,333,334 had an expiration date of June 9, 2014 (the "2014 Warrants"), and 2,500,001 are scheduled to expire on June 9, 2016 (the "2016 Warrants"). During the six months prior to their respective expiration dates, the warrants provide the holders with a cashless exercise option. We have accounted for these warrants as equity instruments. Future exercises and forfeitures will reduce the amount of warrants. Future exercises will increase the amount of common shares outstanding and reduce additional paid-in capital. | ||||||||||||||
Activity relating to the warrants was as followed for the periods presented: | ||||||||||||||
Three Months Ended | ||||||||||||||
March 29, 2015 | March 30, 2014 | |||||||||||||
2016 Warrants | 2014 Warrants | 2016 Warrants | Total Warrants | |||||||||||
Outstanding, beginning of period | 2,500,001 | 3,333,334 | 2,500,001 | 5,833,335 | ||||||||||
Exercised | — | (879,681 | ) | — | (879,681 | ) | ||||||||
Outstanding, end of period | 2,500,001 | 2,453,653 | 2,500,001 | 4,953,654 | ||||||||||
Common shares issued | — | 98,739 | — | 98,739 | ||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended | |||
Mar. 29, 2015 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
Commitments and Contingencies | Commitments and Contingencies | |||
For lease agreements that provide for escalating rent payments or rent-free occupancy periods, we recognize rent expense on a straight line basis over the non-cancelable lease term and any option renewal period where failure to exercise such option would result in an economic penalty in such amount that renewal appears, at the inception of the lease, to be reasonably assured. The lease term commences on the date when all conditions precedent to our obligation to pay rent are satisfied. The leases contain provisions for renewal ranging from zero to three options of generally five years each. Minimum payments, for the following future periods, under non-cancelable operating leases and service agreements with initial or remaining terms of one year or more consist of the following: | ||||
(In thousands) | ||||
Fiscal year: | ||||
2015 (remaining nine months) | $ | 12,275 | ||
2016 | 13,317 | |||
2017 | 10,985 | |||
2018 | 10,029 | |||
2019 | 9,307 | |||
Thereafter | 69,524 | |||
Total future minimum lease payments | $ | 125,437 | ||
Total rent expense, including non-cancelable operating leases and month-to-month leases, was $5.7 million, $6.2 million for the three months ended March 29, 2015, and March 30, 2014, respectively. | ||||
We have provided customary indemnifications to our landlords under certain property lease agreements for claims by third parties in connection with their use of the premises. We also have provided routine indemnifications against adverse effects related to changes in tax laws and patent infringements by third parties. The maximum amount of these indemnifications cannot be reasonably estimated due to their nature. In some cases, we have recourse against other parties to mitigate the risk of loss from these indemnifications. Historically, we have not made any significant payments relating to such indemnifications. | ||||
From time to time, we are involved in various claims and legal actions. In the opinion of management, the ultimate disposition of these matters, individually and in the aggregate, will not have a material effect on our condensed consolidated financial statements, results of operations or liquidity. |
Restructuring_Costs
Restructuring Costs | 3 Months Ended | |||||||||||||||||||||||
Mar. 29, 2015 | ||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||||||||||||||
Restructuring Costs | Restructuring Costs | |||||||||||||||||||||||
The following table summarizes the restructuring charges recorded for the periods indicated: | ||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
29-Mar-15 | 30-Mar-14 | |||||||||||||||||||||||
(In thousands) | North America | Europe, Asia and Latin America | Total | North America | Europe, Asia and Latin America | Total | ||||||||||||||||||
2015 Plan | 624 | 1,687 | 2,311 | — | — | — | ||||||||||||||||||
2013 Plan | 4 | 41 | 45 | 15 | 674 | 689 | ||||||||||||||||||
2012 and Prior Plans | — | — | — | 17 | 15 | 32 | ||||||||||||||||||
Total Restructuring Costs | $ | 628 | $ | 1,728 | $ | 2,356 | $ | 32 | $ | 689 | $ | 721 | ||||||||||||
Cumulative Amount Incurred Through | ||||||||||||||||||||||||
29-Mar-15 | ||||||||||||||||||||||||
(In thousands) | North America | Europe, Asia and Latin America | Africa | Total | ||||||||||||||||||||
2015 Plan | 624 | 1,687 | — | 2,311 | ||||||||||||||||||||
2014 Plan | — | 9,503 | — | 9,503 | ||||||||||||||||||||
2013 Plan | 2,953 | 3,705 | 1,149 | 7,807 | ||||||||||||||||||||
2012 and Prior Plans | 10,396 | 20,202 | — | 30,598 | ||||||||||||||||||||
Total Restructuring Costs | $ | 13,973 | $ | 35,097 | $ | 1,149 | $ | 50,219 | ||||||||||||||||
During 2015, we began implementing a multi-year plan to reorganize and consolidate certain aspects of our global head office (the "2015 Plan"). The 2015 Plan includes the creation of a new shared services function, the rationalization of certain of our European facilities and related headcount reductions. The 2015 Plan was implemented in response to the need for more effective business processes enabled by the planned implementation of our new enterprise resource planning system as well as ongoing weak market conditions in Europe outside of the United Kingdom. Costs associated with the 2015 Plan include severance and closure charges and are expected to be completed by the first quarter of 2016. As of March 29, 2015, we expect to incur approximately $3 million of future charges relating to the 2015 Plan. | ||||||||||||||||||||||||
On August 20, 2014, the Board of Directors of Masonite Israel Ltd. (“Israel”), one of our wholly-owned subsidiaries, decided to voluntarily seek a Stay of Proceedings from the Israeli courts in an attempt to restructure the business (the “2014 Plan”). The court filing was made on August 21, 2014, and the court appointed a trustee to oversee the operation of the business and to attempt to restructure it. The action to seek court protection followed a comprehensive evaluation of the alternatives for the business, including an organized sale process that was ultimately unsuccessful. We determined that the subsidiary should be deconsolidated at that time, as it had become subject to the control of a court. We have had and will continue to have no continuing involvement with Israel subsequent to August 21, 2014, and Israel will not be considered a related party. As of March 29, 2015, pending the ultimate resolution of the Stay of Proceedings, we do not anticipate any material future charges related to the 2014 Plan. | ||||||||||||||||||||||||
During 2013, we began implementing plans to rationalize certain of our facilities, including related headcount reductions, in Canada due to synergy opportunities related to recent acquisitions in the residential interior wood door markets. We have also rationalized certain of our operations, including related headcount reductions, in Ireland, South Africa and Israel in order to respond to declines in demand in international markets. Additionally, the decision was made to discontinue sales into the Polish market subsequent to the decision to cease manufacturing operations in 2012 (collectively, the "2013 Plan"). Costs associated with the 2013 Plan include severance and closure charges, including impairment of certain property, plant and equipment, and are substantially completed. As of March 29, 2015, we do not expect to incur any material future charges for the 2013 Plan. | ||||||||||||||||||||||||
Prior years’ restructuring costs relate to the closure of certain of our U.S. manufacturing facilities due to the start-up of our highly automated interior door slab assembly plant in Denmark, South Carolina, synergy opportunities related to acquisitions in the architectural interior wood door market and footprint optimization efforts resulting from declines in demand in specific markets, primarily in Europe. In response to the decline in demand, we reviewed the required levels of production and reduced the workforce and plant capacity accordingly, resulting in severance and closure charges. These actions were taken in order to rationalize capacity with existing and forecasted market demand conditions. The restructuring plans initiated in 2012 and prior years (the "2012 and Prior Plans") are substantially completed, although cash payments are expected to continue through 2019, primarily related to lease payments at closed facilities. As of March 29, 2015, we do not expect to incur any future charges for the 2012 and Prior Plans. | ||||||||||||||||||||||||
The changes in the accrual for restructuring by activity were as follows for the periods indicated: | ||||||||||||||||||||||||
(In thousands) | December 28, | Severance | Closure Costs | Cash Payments | March 29, | |||||||||||||||||||
2014 | 2015 | |||||||||||||||||||||||
2015 Plan | $ | — | $ | 1,536 | $ | 775 | $ | 998 | $ | 1,313 | ||||||||||||||
2014 Plan | 839 | — | — | 223 | 616 | |||||||||||||||||||
2013 Plan | 341 | — | 45 | 65 | 321 | |||||||||||||||||||
2012 and Prior Plans | 1,153 | — | — | 297 | 856 | |||||||||||||||||||
Total | $ | 2,333 | $ | 1,536 | $ | 820 | $ | 1,583 | $ | 3,106 | ||||||||||||||
(In thousands) | December 29, | Severance | Closure Costs | Cash Payments | March 30, | |||||||||||||||||||
2013 | 2014 | |||||||||||||||||||||||
2013 Plan | 2,348 | 77 | 612 | 1,839 | 1,198 | |||||||||||||||||||
2012 and Prior Plans | 2,061 | 2 | 30 | 200 | 1,893 | |||||||||||||||||||
Total | $ | 4,409 | $ | 79 | $ | 642 | $ | 2,039 | $ | 3,091 | ||||||||||||||
Income_Taxes
Income Taxes | 3 Months Ended | |||||||
Mar. 29, 2015 | ||||||||
Income Tax Disclosure [Abstract] | ||||||||
Income Taxes | Income Taxes | |||||||
Income tax expense (benefit) for income taxes consists of the following: | ||||||||
Three Months Ended | ||||||||
(In thousands) | 29-Mar-15 | 30-Mar-14 | ||||||
Current | $ | 1,499 | $ | 1,069 | ||||
Deferred | 1,765 | (1,050 | ) | |||||
Income tax expense (benefit) | $ | 3,264 | $ | 19 | ||||
The effective tax rate differs from the Canadian federal statutory rate of 26.5% primarily due to changes in our valuation allowances, tax exempt income, and earnings in foreign jurisdictions which are subject to lower tax rates. | ||||||||
We currently have deferred tax assets in certain jurisdictions resulting from net operating losses and other deductible temporary differences, which will reduce taxable income in these jurisdictions in future periods. We have determined that a valuation allowance of $45.2 million and $35.8 million was required for our deferred income tax assets as of March 29, 2015, and December 28, 2014, respectively. A valuation allowance has been established on deferred tax assets resulting from net operating loss carry forwards and other carry forward attributes primarily in Canada, Chile, France, India and Luxembourg. We expect to record valuation allowances on deferred tax assets arising in these jurisdictions until a sustained level of taxable income is reached. |
Supplemental_Cash_Flow_Informa
Supplemental Cash Flow Information | 3 Months Ended | |||||||
Mar. 29, 2015 | ||||||||
Supplemental Cash Flow Elements [Abstract] | ||||||||
Supplemental Cash Flow Information | Supplemental Cash Flow Information | |||||||
Certain cash and non-cash transactions were as follows for the periods indicated: | ||||||||
Three Months Ended | ||||||||
(In thousands) | March 29, 2015 | March 30, 2014 | ||||||
Transactions involving cash: | ||||||||
Interest paid | $ | 19,906 | $ | 51 | ||||
Interest received | 167 | 101 | ||||||
Income taxes paid | 1,507 | 1,415 | ||||||
Income tax refunds | 9 | — | ||||||
Non-cash transactions: | ||||||||
Property, plant and equipment additions in accounts payable | 2,264 | 5,417 | ||||||
Segment_Information
Segment Information | 3 Months Ended | |||||||||||||||
Mar. 29, 2015 | ||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||
Segment Information | Segment Information | |||||||||||||||
Our reportable segments are organized and managed principally by geographic region: North America; Europe, Asia and Latin America; and Africa. Our management reviews net sales and Adjusted EBITDA (as defined below) to evaluate segment performance and allocate resources. Net assets are not allocated to the geographic segments. Adjusted EBITDA is a non-GAAP financial measure which does not have a standardized meaning under GAAP and is unlikely to be comparable to similar measures used by other companies. Beginning in the first quarter of 2015, we revised our calculation of Adjusted EBITDA to separately exclude loss on extinguishment of debt, which would be a component of other expense (income), net, but is separately stated due to its magnitude. The revision of this definition had no impact on our reported Adjusted EBITDA for the three months ended March 30, 2014. Adjusted EBITDA (as revised) is defined as net income (loss) attributable to Masonite adjusted to exclude the following items: | ||||||||||||||||
• depreciation; | ||||||||||||||||
• amortization; | ||||||||||||||||
• share based compensation expense; | ||||||||||||||||
• loss (gain) on disposal of property, plant and equipment; | ||||||||||||||||
• registration and listing fees; | ||||||||||||||||
• restructuring costs; | ||||||||||||||||
• asset impairment; | ||||||||||||||||
• interest expense (income), net; | ||||||||||||||||
• loss from extinguishment of debt; | ||||||||||||||||
• other expense (income), net; | ||||||||||||||||
• income tax expense (benefit); | ||||||||||||||||
• loss (income) from discontinued operations, net of tax; and | ||||||||||||||||
• net income (loss) attributable to non-controlling interest. | ||||||||||||||||
This definition of Adjusted EBITDA differs from the definitions of EBITDA contained in the indenture governing the 2023 Notes and the credit agreement governing the ABL Facility. Although Adjusted EBITDA is not a measure of financial condition or performance determined in accordance with GAAP, it is used to evaluate and compare the operating performance of the segments and it is one of the primary measures used to determine employee incentive compensation. Intersegment transfers are negotiated on an arm’s length basis, using market prices. | ||||||||||||||||
Certain information with respect to geographic segments is as follows for the periods indicated: | ||||||||||||||||
(In thousands) | Three Months Ended March 29, 2015 | |||||||||||||||
(In thousands) | North America | Europe, Asia and Latin America | Africa | Total | ||||||||||||
Sales | $ | 336,288 | $ | 93,016 | $ | 11,280 | $ | 440,584 | ||||||||
Intersegment sales | (332 | ) | (5,787 | ) | — | (6,119 | ) | |||||||||
Net sales to external customers | $ | 335,956 | $ | 87,229 | $ | 11,280 | $ | 434,465 | ||||||||
Adjusted EBITDA | $ | 29,638 | $ | 8,771 | $ | (621 | ) | $ | 37,788 | |||||||
(In thousands) | Three Months Ended March 30, 2014 | |||||||||||||||
(In thousands) | North America | Europe, Asia and Latin America | Africa | Total | ||||||||||||
Sales | $ | 314,767 | $ | 100,564 | $ | 13,392 | $ | 428,723 | ||||||||
Intersegment sales | (326 | ) | (5,937 | ) | — | (6,263 | ) | |||||||||
Net sales to external customers | $ | 314,441 | $ | 94,627 | $ | 13,392 | $ | 422,460 | ||||||||
Adjusted EBITDA | $ | 16,003 | $ | 3,034 | $ | 681 | $ | 19,718 | ||||||||
A reconciliation of our consolidated Adjusted EBITDA to net income (loss) attributable to Masonite is set forth as follows for the periods indicated: | ||||||||||||||||
Three Months Ended | ||||||||||||||||
(In thousands) | March 29, 2015 | March 30, 2014 | ||||||||||||||
Adjusted EBITDA | $ | 37,788 | $ | 19,718 | ||||||||||||
Less (plus): | ||||||||||||||||
Depreciation | 15,306 | 15,446 | ||||||||||||||
Amortization | 5,011 | 5,691 | ||||||||||||||
Share based compensation expense | 2,379 | 2,283 | ||||||||||||||
Loss (gain) on disposal of property, plant and equipment | (56 | ) | 1,087 | |||||||||||||
Restructuring costs | 2,356 | 721 | ||||||||||||||
Interest expense (income), net | 11,753 | 9,993 | ||||||||||||||
Loss on extinguishment of debt | 28,046 | — | ||||||||||||||
Other expense (income), net | (1,184 | ) | 181 | |||||||||||||
Income tax expense (benefit) | 3,264 | 19 | ||||||||||||||
Loss (income) from discontinued operations, net of tax | 229 | 142 | ||||||||||||||
Net income (loss) attributable to non-controlling interest | 1,736 | 741 | ||||||||||||||
Net income (loss) attributable to Masonite | $ | (31,052 | ) | $ | (16,586 | ) |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 29, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments |
The carrying amounts of our cash and cash equivalents, restricted cash, accounts receivable, income taxes receivable, accounts payable, accrued expenses and income taxes payable approximate fair value because of the short-term maturity of those instruments. The estimated fair value of the Senior Notes as of March 29, 2015, and December 28, 2014, was $491.7 million and $532.5 million, respectively, compared to a carrying value of $475.0 million and $511.9 million, respectively. This estimate is based on market quotes and calculations based on current market rates available to us and is categorized as having Level 2 valuation inputs as established by the FASB’s Fair Value Framework. Market quotes used in these calculations are based on bid prices for our debt instruments and are obtained from and corroborated with multiple independent sources. The market quotes obtained from independent sources are within the range of management’s expectations. |
Earnings_Per_Share
Earnings Per Share | 3 Months Ended | |||||||
Mar. 29, 2015 | ||||||||
Earnings Per Share [Abstract] | ||||||||
Earnings Per Share | Earnings Per Share | |||||||
Basic earnings per share ("EPS") is calculated by dividing earnings attributable to Masonite by the weighted-average number of our common shares outstanding during the period. Diluted EPS is calculated by dividing earnings attributable to Masonite by the weighted-average number of common shares plus the incremental number of shares issuable from non-vested and vested RSUs, SARs and warrants outstanding during the period. | ||||||||
Three Months Ended | ||||||||
(In thousands, except share and per share information) | March 29, 2015 | March 30, 2014 | ||||||
Net income (loss) attributable to Masonite | $ | (31,052 | ) | $ | (16,586 | ) | ||
Income (loss) from discontinued operations, net of tax | (229 | ) | (142 | ) | ||||
Income (loss) from continuing operations attributable to Masonite | $ | (30,823 | ) | $ | (16,444 | ) | ||
Shares used in computing basic and diluted earnings per share | 30,056,085 | 29,186,262 | ||||||
Effect of dilutive securities: | ||||||||
Incremental shares issuable under share compensation plans | — | — | ||||||
Shares used in computing diluted earnings per share | 30,056,085 | 29,186,262 | ||||||
Basic earnings (loss) per common share attributable to Masonite: | ||||||||
Continuing operations attributable to Masonite | $ | (1.02 | ) | $ | (0.56 | ) | ||
Discontinued operations attributable to Masonite, net of tax | (0.01 | ) | — | |||||
Total Basic earnings per common share attributable to Masonite | $ | (1.03 | ) | $ | (0.56 | ) | ||
Diluted earnings (loss) per common share attributable to Masonite: | ||||||||
Continuing operations attributable to Masonite | $ | (1.02 | ) | $ | (0.56 | ) | ||
Discontinued operations attributable to Masonite, net of tax | (0.01 | ) | — | |||||
Total Diluted earnings per common share attributable to Masonite | $ | (1.03 | ) | $ | (0.56 | ) | ||
Incremental shares issuable from anti-dilutive instruments excluded from diluted earnings per common share: | ||||||||
Warrants | 2,500,001 | 4,953,654 | ||||||
Stock appreciation rights | 489,427 | 818,895 | ||||||
Restricted stock units | 472,556 | 597,153 | ||||||
The weighted average number of shares outstanding utilized for the diluted EPS calculation contemplates the exercise of all currently outstanding SARs and warrants and the conversion of all RSUs. The dilutive effect of such equity awards is calculated based on the weighted average share price for each fiscal period using the treasury stock method. For the three months ended March 29, 2015, and March 30, 2014, no potential common shares relating to our equity awards were included in the computation of diluted loss per share, as their effect would have been anti-dilutive given our net loss position for those periods. |
Other_Comprehensive_Income_and
Other Comprehensive Income and Accumulated Other Comprehensive Income | 3 Months Ended | |||||||
Mar. 29, 2015 | ||||||||
Equity [Abstract] | ||||||||
Other Comprehensive Income and Accumulated Other Comprehensive Income | Other Comprehensive Income and Accumulated Other Comprehensive Income | |||||||
A rollforward of the components of accumulated other comprehensive income (loss) is as follows for the periods indicated: | ||||||||
Three Months Ended | ||||||||
(In thousands) | March 29, 2015 | March 30, 2014 | ||||||
Accumulated foreign exchange gains (losses), beginning of period | $ | (57,473 | ) | $ | (8,797 | ) | ||
Foreign exchange gain (loss) | (35,140 | ) | (7,485 | ) | ||||
Income tax benefit (expense) on foreign exchange gain (loss) | — | — | ||||||
Less: foreign exchange gain (loss) attributable to non-controlling interest | (685 | ) | (471 | ) | ||||
Accumulated foreign exchange gains (losses), end of period | (91,928 | ) | (15,811 | ) | ||||
Accumulated amortization of actuarial net losses, beginning of period | 1,890 | 1,890 | ||||||
Amortization of actuarial net losses | 220 | — | ||||||
Income tax benefit (expense) on amortization of actuarial net losses | (87 | ) | — | |||||
Accumulated amortization of actuarial net losses, end of period | 2,023 | 1,890 | ||||||
Accumulated pension and other post-retirement adjustments | (20,676 | ) | (12,694 | ) | ||||
Accumulated other comprehensive income (loss) | $ | (110,581 | ) | $ | (26,615 | ) | ||
Other comprehensive income (loss), net of tax: | $ | (35,007 | ) | $ | (7,485 | ) | ||
Less: other comprehensive income (loss) attributable to non-controlling interest | (685 | ) | (471 | ) | ||||
Other comprehensive income (loss) attributable to Masonite | $ | (34,322 | ) | $ | (7,014 | ) | ||
Actuarial net losses are reclassified out of accumulated other comprehensive income (loss) into cost of goods sold in the condensed consolidated statements of comprehensive income (loss). |
Variable_Interest_Entity
Variable Interest Entity | 3 Months Ended | |||||||
Mar. 29, 2015 | ||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||
Variable Interest Entity | Variable Interest Entity | |||||||
As of March 29, 2015, and December 28, 2014, we held an interest in one variable interest entity ("VIE"), Magna Foremost Sdn Bhd, which is located in Kuala Lumpur, Malaysia. The VIE is integrated into our supply chain and manufactures door facings. We are the primary beneficiary of the VIE via the terms of the existing supply agreement with the VIE. As primary beneficiary via the supply agreement, we receive a disproportionate amount of earnings on sales to third parties in relation to our voting interest, and as a result, receive a majority of the VIE’s residual returns. Sales to third parties did not have a material impact on our condensed consolidated financial statements. We also have the power to direct activities of the VIE that most significantly impact the entity’s economic performance. As its primary beneficiary, we have consolidated the results of the VIE. Our net cumulative investment in the VIE was comprised of the following as of the dates indicated: | ||||||||
(In thousands) | March 29, | December 28, | ||||||
2015 | 2014 | |||||||
Current assets | $ | 9,324 | $ | 8,346 | ||||
Property, plant and equipment, net | 19,355 | 17,788 | ||||||
Long-term deferred income taxes | 11,797 | 12,321 | ||||||
Other assets, net | 2,387 | 2,234 | ||||||
Current liabilities | (2,032 | ) | (2,496 | ) | ||||
Other long-term liabilities | (4,249 | ) | (4,479 | ) | ||||
Non-controlling interest | (5,678 | ) | (7,785 | ) | ||||
Net assets of the VIE consolidated by Masonite | $ | 30,904 | $ | 25,929 | ||||
Current assets include $4.4 million and $3.1 million of cash and cash equivalents as of March 29, 2015, and December 28, 2014, respectively. Assets recognized as a result of consolidating this VIE do not represent additional assets that could be used to satisfy claims against our general assets. Conversely, liabilities recognized as a result of consolidating these entities do not represent additional claims on our general assets; rather, they represent claims against the specific assets of the consolidated VIE. |
Subsequent_Events
Subsequent Events | 3 Months Ended |
Mar. 29, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events |
We have evaluated events and transactions occurring subsequent to March 29, 2015, through the date the financial statements were issued. | |
ABL Facility | |
On April 9, 2015, we and certain of our subsidiaries amended and restated the credit agreement for our ABL Facility in order to extend the maturity date of the ABL Facility and amend certain other provisions. The amended and restated ABL Facility increased the revolving commitments to $150.0 million from $125.0 million and extended the final maturity date to April 9, 2020, from May 17, 2016. The ABL Facility will bear interest at a rate equal to, at our option, (i) the Base Rate, Canadian Prime Rate or Canadian Base Rate (each as defined in the Amended and Restated Credit Agreement) plus a margin ranging from 0.25% to 0.75% per annum, or (ii) the Eurodollar Base Rate or BA Rate (each as defined in the Amended and Restated Credit Agreement), plus a margin ranging from 1.25% to 1.75% per annum. A commitment fee is payable on the undrawn portion of the ABL Facility in an amount equal to 0.25% per annum of the average daily balance of unused commitments during each calendar quarter. | |
The Amended and Restated Credit Agreement amends the ABL Facility to, among other things, (i) permit us to incur unlimited unsecured debt as long as such debt does not contain covenants or default provisions that are more restrictive than those contained in the ABL Facility, (ii) permit us to incur debt as long as the pro forma secured leverage ratio is less than 4.5 to 1.0, and (iii) add certain additional exceptions and exemptions under the restricted payment, investment and indebtedness covenants (including increasing the amount of certain debt permitted to be incurred under an existing exception). As of May 7, 2015, there were no amounts outstanding under the ABL Facility. |
Recovered_Sheet1
Business Overview and Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 29, 2015 | |
Accounting Policies [Abstract] | |
Adoption of Recent Accounting Pronouncements | In April 2014, the FASB issued ASU 2014-08, "Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity," which amends the definition of a discontinued operation in ASC 205-20 and requires entities to provide additional disclosures about discontinued operations as well as disposal transactions that do not meet the discontinued operations criteria. The FASB issued the ASU to provide more decision-useful information and to make it more difficult for a disposal transaction to qualify as a discontinued operation. This ASU is effective for annual reporting periods beginning after December 15, 2014, and interim periods within those annual periods; early application is permitted. The adoption of this standard did not have a material impact on the presentation of our financial statements. |
Other Recent Accounting Pronouncements not yet Adopted | |
In April 2015, the FASB issued ASU 2015-04, “Practical Expedient for the Measurement Date of an Employer’s Defined Benefit Obligation and Plan Assets.” This ASU provides a practical expedient option to entities that have defined benefit plans and have a fiscal year end that does not coincide with a calendar month end. This ASU allows an entity to elect to measure defined benefit plan assets and obligations using the calendar month-end that is closest to its fiscal year end. This ASU is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2015, and interim periods within those annual periods; early adoption is permitted. We are in the process of evaluating this guidance to determine the impact it will have on our financial statements. | |
In April 2015, the FASB issued ASU 2015-03, “Simplifying the Presentation of Debt Issuance Costs.” This ASU requires capitalized debt issuance costs to be presented as a reduction to the carrying value of debt instead of being classified as a deferred charge, as currently required. This ASU is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2015, and interim periods within those annual periods; early adoption is permitted and retroactive application is required. We are in the process of evaluating this guidance to determine the impact it will have on our financial statements. | |
In February 2015, the FASB issued ASU 2015-02, “Amendments to the Consolidation Analysis,” which amended ASC 810, “Consolidation.” This ASU modifies the evaluation of whether limited partnerships are variable interest entities (“VIEs”) and affects the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships. This ASU is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2015, and interim periods within those annual periods; early adoption is permitted. We are in the process of evaluating this guidance to determine the impact it will have on our financial statements. | |
In August 2014, the FASB issued ASU 2014-15, "Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern," which amended ASC 205-40, "Presentation of Financial Statements - Going Concern". This ASU requires management to perform interim and annual assessments of an entity's ability to continue as a going concern within one year of the date of issuance of the entity's financial statements and to provide related footnote disclosures. This ASU is effective for annual reporting periods ending after December 15, 2016, and interim periods thereafter; early adoption is permitted. We are in the process of evaluating this guidance to determine the impact it will have on our financial statements. | |
In May 2014, the FASB issued ASU 2014-09, "Revenue From Contracts With Customers," which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The core principle of the revenue model is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This ASU is effective for annual reporting periods beginning after December 15, 2016, and interim periods within those annual periods; early application is not permitted. In April 2015, the FASB voted for a one year deferral of the effective date of ASU 2014-09 and issued an exposure draft. If approved, the new guidance will be effective for annual and interim periods beginning on or after December 15, 2017. We are in the process of evaluating this guidance to determine the impact it will have on our financial statements. |
Acquisitions_Tables
Acquisitions (Tables) | 3 Months Ended | |||||||||||
Mar. 29, 2015 | ||||||||||||
Business Combinations [Abstract] | ||||||||||||
Aggregate consideration paid for acquisitions | The aggregate consideration paid for acquisitions during 2014 was as follows: | |||||||||||
(In thousands) | Harring Acquisition | Door-Stop Acquisition | Total 2014 Acquisitions | |||||||||
Accounts receivable | $ | 1,180 | $ | 2,648 | $ | 3,828 | ||||||
Inventory | 443 | 2,665 | 3,108 | |||||||||
Property, plant and equipment | 1,167 | 4,303 | 5,470 | |||||||||
Goodwill | 1,951 | 20,359 | 22,310 | |||||||||
Intangible assets | — | 28,776 | 28,776 | |||||||||
Accounts payable and accrued expenses | (731 | ) | (3,492 | ) | (4,223 | ) | ||||||
Other assets and liabilities, net | (109 | ) | (4,904 | ) | (5,013 | ) | ||||||
Cash consideration, net of cash acquired | $ | 3,901 | $ | 50,355 | $ | 54,256 | ||||||
Pro forma information of acquisitions | ||||||||||||
Three Months Ended March 30, 2014 | ||||||||||||
(In thousands, except per share amounts) | Masonite | Door-Stop | Pro Forma | |||||||||
Net sales | $ | 422,460 | $ | 6,659 | $ | 429,119 | ||||||
Net income (loss) attributable to Masonite | (16,586 | ) | 624 | (15,962 | ) | |||||||
Basic earnings (loss) per common share | $ | (0.56 | ) | $ | (0.55 | ) | ||||||
Diluted earnings (loss) per common share | $ | (0.56 | ) | $ | (0.55 | ) | ||||||
In the table above, amounts under the Door-Stop heading reflect pro forma results for the period prior to acquisition through the acquisition date of February 24, 2014. All actual results from Door-Stop subsequent to the acquisition date are reflected under the Masonite heading above. | ||||||||||||
Amounts of revenue and earnings included in the condensed consolidated statements of comprehensive income (loss) for Harring were not material for the three months ended March 29, 2015. | ||||||||||||
Three Months Ended | ||||||||||||
(In thousands) | 29-Mar-15 | 30-Mar-14 | ||||||||||
Net sales | $ | 11,866 | $ | 5,009 | ||||||||
Net income (loss) attributable to Masonite | 1,126 | 654 | ||||||||||
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended | |||||||||||||||
Mar. 29, 2015 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||
Changes in carrying amount of goodwill | Changes in the carrying amount of goodwill were as follows as of the dates indicated: | |||||||||||||||
(In thousands) | North America Segment | Europe, Asia and Latin America Segment | Total | |||||||||||||
December 28, 2014 | 79,818 | 19,381 | 99,199 | |||||||||||||
Foreign exchange fluctuations | (224 | ) | (808 | ) | (1,032 | ) | ||||||||||
March 29, 2015 | $ | 79,594 | $ | 18,573 | $ | 98,167 | ||||||||||
Cost and accumulated amortized values of intangible assets | The cost and accumulated amortization values of our intangible assets were as follows for the periods indicated: | |||||||||||||||
March 29, 2015 | ||||||||||||||||
(In thousands) | Cost | Accumulated Amortization | Translation Adjustment | Net Book Value | ||||||||||||
Definite life intangible assets: | ||||||||||||||||
Customer relationships | $ | 107,381 | $ | (36,131 | ) | $ | (3,360 | ) | $ | 67,890 | ||||||
Patents | 29,162 | (15,339 | ) | (676 | ) | 13,147 | ||||||||||
Software | 29,132 | (20,259 | ) | (87 | ) | 8,786 | ||||||||||
Other | 9,457 | (6,984 | ) | (1,448 | ) | 1,025 | ||||||||||
175,132 | (78,713 | ) | (5,571 | ) | 90,848 | |||||||||||
Indefinite life intangible assets: | ||||||||||||||||
Trademarks and tradenames | 111,053 | — | (7,562 | ) | 103,491 | |||||||||||
Total intangible assets | $ | 286,185 | $ | (78,713 | ) | $ | (13,133 | ) | $ | 194,339 | ||||||
December 28, 2014 | ||||||||||||||||
(In thousands) | Cost | Accumulated Amortization | Translation Adjustment | Net Book Value | ||||||||||||
Definite life intangible assets: | ||||||||||||||||
Customer relationships | $ | 107,381 | $ | (33,181 | ) | $ | (2,360 | ) | $ | 71,840 | ||||||
Patents | 28,630 | (14,696 | ) | (308 | ) | 13,626 | ||||||||||
Software | 28,832 | (19,322 | ) | 63 | 9,573 | |||||||||||
Other | 9,457 | (6,810 | ) | (1,426 | ) | 1,221 | ||||||||||
174,300 | (74,009 | ) | (4,031 | ) | 96,260 | |||||||||||
Indefinite life intangible assets: | ||||||||||||||||
Trademarks and tradenames | 111,053 | — | (3,941 | ) | 107,112 | |||||||||||
Total intangible assets | $ | 285,353 | $ | (74,009 | ) | $ | (7,972 | ) | $ | 203,372 | ||||||
Estimated future amortization of intangible assets with definite lives | The estimated future amortization of intangible assets with definite lives as of March 29, 2015, is as follows: | |||||||||||||||
(In thousands) | ||||||||||||||||
Fiscal year: | ||||||||||||||||
2015 (remaining nine months) | $ | 13,966 | ||||||||||||||
2016 | 17,248 | |||||||||||||||
2017 | 15,149 | |||||||||||||||
2018 | 11,885 | |||||||||||||||
2019 | 11,505 | |||||||||||||||
Inventories_Tables
Inventories (Tables) | 3 Months Ended | |||||||
Mar. 29, 2015 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Inventories | The amounts of inventory on hand were as follows as of the dates indicated: | |||||||
(In thousands) | March 29, | December 28, | ||||||
2015 | 2014 | |||||||
Raw materials | $ | 164,519 | $ | 159,763 | ||||
Finished goods | 70,494 | 69,517 | ||||||
Provision for obsolete or aged inventory | (6,458 | ) | (6,548 | ) | ||||
Inventories, net | $ | 228,555 | $ | 222,732 | ||||
Property_Plant_and_Equipment_T
Property, Plant and Equipment (Tables) | 3 Months Ended | |||||||
Mar. 29, 2015 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Amounts of property, plant, and equipment | The carrying amounts of our property, plant and equipment and accumulated depreciation were as follows as of the dates indicated: | |||||||
(In thousands) | March 29, | December 28, | ||||||
2015 | 2014 | |||||||
Land | $ | 43,462 | $ | 44,971 | ||||
Buildings | 165,049 | 170,344 | ||||||
Machinery and equipment | 527,197 | 530,599 | ||||||
Property, plant and equipment, gross | 735,708 | 745,914 | ||||||
Accumulated depreciation | (180,574 | ) | (169,680 | ) | ||||
Property, plant and equipment, net | $ | 555,134 | $ | 576,234 | ||||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 3 Months Ended | |||||||
Mar. 29, 2015 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Schedule of long-term debt | ||||||||
(In thousands) | March 29, | December 28, | ||||||
2015 | 2014 | |||||||
5.625% senior unsecured notes due 2023 | $ | 475,000 | $ | — | ||||
8.25% senior unsecured notes due 2021 | — | 500,000 | ||||||
Unamortized premium on 2021 Notes | — | 11,920 | ||||||
Total long-term debt | $ | 475,000 | $ | 511,920 | ||||
Share_Based_Compensation_Plans1
Share Based Compensation Plans (Tables) | 3 Months Ended | |||||||||||||
Mar. 29, 2015 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||
Stock appreciation rights award activity | ||||||||||||||
Three Months Ended March 29, 2015 | Stock Appreciation Rights | Aggregate Intrinsic Value (in thousands) | Weighted Average Exercise Price | Average Remaining Contractual Life (Years) | ||||||||||
Outstanding, beginning of period | 1,231,468 | $ | 48,516 | $ | 19.59 | 5.9 | ||||||||
Exercised | (141,772 | ) | 6,546 | 16.73 | ||||||||||
Cancelled | (800 | ) | 32.68 | |||||||||||
Outstanding, end of period | 1,088,896 | $ | 51,253 | $ | 19.97 | 5.7 | ||||||||
Exercisable, end of period | 852,059 | $ | 42,831 | $ | 16.73 | 5 | ||||||||
Three Months Ended March 30, 2014 | Stock Appreciation Rights | Aggregate Intrinsic Value (in thousands) | Weighted Average Exercise Price | Average Remaining Contractual Life (Years) | ||||||||||
Outstanding, beginning of period | 1,812,658 | $ | 59,525 | $ | 18.16 | 6.4 | ||||||||
Exercised | (130,186 | ) | 14.02 | |||||||||||
Cancelled | (16,210 | ) | 41.38 | |||||||||||
Outstanding, end of period | 1,666,262 | $ | 63,569 | $ | 18.22 | 6.2 | ||||||||
Exercisable, end of period | 1,308,842 | $ | 53,593 | $ | 15.42 | 5.5 | ||||||||
Restricted stock units award activity | ||||||||||||||
Three Months Ended | ||||||||||||||
March 29, 2015 | March 30, 2014 | |||||||||||||
Total Restricted Stock Units Outstanding | Weighted Average Grant Date Fair Value | Total Restricted Stock Units Outstanding | Weighted Average Grant Date Fair Value | |||||||||||
Outstanding, beginning of period | 543,373 | $ | 34.56 | 618,963 | $ | 22.09 | ||||||||
Granted | 177,862 | — | 183,421 | |||||||||||
Delivered | (18,852 | ) | (7,669 | ) | ||||||||||
Withheld to cover (1) | (2,303 | ) | (2,020 | ) | ||||||||||
Cancelled | (1,445 | ) | (542 | ) | ||||||||||
Outstanding, end of period | 698,635 | $ | 37.43 | 792,153 | $ | 29.45 | ||||||||
____________ | ||||||||||||||
(1) A portion of the vested RSUs delivered were net share settled to cover the minimum statutory requirements for income and other employment taxes, at the individual participant’s election. We remit the equivalent cash to the appropriate taxing authorities. These net share settlements had the effect of share repurchases by us as we reduced and retired the number of shares that would have otherwise been issued as a result of the vesting. | ||||||||||||||
Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block] | Activity relating to the warrants was as followed for the periods presented: | |||||||||||||
Three Months Ended | ||||||||||||||
March 29, 2015 | March 30, 2014 | |||||||||||||
2016 Warrants | 2014 Warrants | 2016 Warrants | Total Warrants | |||||||||||
Outstanding, beginning of period | 2,500,001 | 3,333,334 | 2,500,001 | 5,833,335 | ||||||||||
Exercised | — | (879,681 | ) | — | (879,681 | ) | ||||||||
Outstanding, end of period | 2,500,001 | 2,453,653 | 2,500,001 | 4,953,654 | ||||||||||
Common shares issued | — | 98,739 | — | 98,739 | ||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 3 Months Ended | |||
Mar. 29, 2015 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
Minimum payments under non-cancelable operating leases and service agreements | Minimum payments, for the following future periods, under non-cancelable operating leases and service agreements with initial or remaining terms of one year or more consist of the following: | |||
(In thousands) | ||||
Fiscal year: | ||||
2015 (remaining nine months) | $ | 12,275 | ||
2016 | 13,317 | |||
2017 | 10,985 | |||
2018 | 10,029 | |||
2019 | 9,307 | |||
Thereafter | 69,524 | |||
Total future minimum lease payments | $ | 125,437 | ||
Restructuring_Costs_Tables
Restructuring Costs (Tables) | 3 Months Ended | |||||||||||||||||||||||
Mar. 29, 2015 | ||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||||||||||||||
Total restructuring costs by plan | The following table summarizes the restructuring charges recorded for the periods indicated: | |||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
29-Mar-15 | 30-Mar-14 | |||||||||||||||||||||||
(In thousands) | North America | Europe, Asia and Latin America | Total | North America | Europe, Asia and Latin America | Total | ||||||||||||||||||
2015 Plan | 624 | 1,687 | 2,311 | — | — | — | ||||||||||||||||||
2013 Plan | 4 | 41 | 45 | 15 | 674 | 689 | ||||||||||||||||||
2012 and Prior Plans | — | — | — | 17 | 15 | 32 | ||||||||||||||||||
Total Restructuring Costs | $ | 628 | $ | 1,728 | $ | 2,356 | $ | 32 | $ | 689 | $ | 721 | ||||||||||||
Cumulative Amount Incurred Through | ||||||||||||||||||||||||
29-Mar-15 | ||||||||||||||||||||||||
(In thousands) | North America | Europe, Asia and Latin America | Africa | Total | ||||||||||||||||||||
2015 Plan | 624 | 1,687 | — | 2,311 | ||||||||||||||||||||
2014 Plan | — | 9,503 | — | 9,503 | ||||||||||||||||||||
2013 Plan | 2,953 | 3,705 | 1,149 | 7,807 | ||||||||||||||||||||
2012 and Prior Plans | 10,396 | 20,202 | — | 30,598 | ||||||||||||||||||||
Total Restructuring Costs | $ | 13,973 | $ | 35,097 | $ | 1,149 | $ | 50,219 | ||||||||||||||||
Schedule of restructuring reserve by type of cost | The changes in the accrual for restructuring by activity were as follows for the periods indicated: | |||||||||||||||||||||||
(In thousands) | December 28, | Severance | Closure Costs | Cash Payments | March 29, | |||||||||||||||||||
2014 | 2015 | |||||||||||||||||||||||
2015 Plan | $ | — | $ | 1,536 | $ | 775 | $ | 998 | $ | 1,313 | ||||||||||||||
2014 Plan | 839 | — | — | 223 | 616 | |||||||||||||||||||
2013 Plan | 341 | — | 45 | 65 | 321 | |||||||||||||||||||
2012 and Prior Plans | 1,153 | — | — | 297 | 856 | |||||||||||||||||||
Total | $ | 2,333 | $ | 1,536 | $ | 820 | $ | 1,583 | $ | 3,106 | ||||||||||||||
(In thousands) | December 29, | Severance | Closure Costs | Cash Payments | March 30, | |||||||||||||||||||
2013 | 2014 | |||||||||||||||||||||||
2013 Plan | 2,348 | 77 | 612 | 1,839 | 1,198 | |||||||||||||||||||
2012 and Prior Plans | 2,061 | 2 | 30 | 200 | 1,893 | |||||||||||||||||||
Total | $ | 4,409 | $ | 79 | $ | 642 | $ | 2,039 | $ | 3,091 | ||||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 3 Months Ended | |||||||
Mar. 29, 2015 | ||||||||
Income Tax Disclosure [Abstract] | ||||||||
Income tax expense (benefit) for income taxes | Income tax expense (benefit) for income taxes consists of the following: | |||||||
Three Months Ended | ||||||||
(In thousands) | 29-Mar-15 | 30-Mar-14 | ||||||
Current | $ | 1,499 | $ | 1,069 | ||||
Deferred | 1,765 | (1,050 | ) | |||||
Income tax expense (benefit) | $ | 3,264 | $ | 19 | ||||
Supplemental_Cash_Flow_Informa1
Supplemental Cash Flow Information (Tables) | 3 Months Ended | |||||||
Mar. 29, 2015 | ||||||||
Supplemental Cash Flow Elements [Abstract] | ||||||||
Cash and non-cash transactions | Certain cash and non-cash transactions were as follows for the periods indicated: | |||||||
Three Months Ended | ||||||||
(In thousands) | March 29, 2015 | March 30, 2014 | ||||||
Transactions involving cash: | ||||||||
Interest paid | $ | 19,906 | $ | 51 | ||||
Interest received | 167 | 101 | ||||||
Income taxes paid | 1,507 | 1,415 | ||||||
Income tax refunds | 9 | — | ||||||
Non-cash transactions: | ||||||||
Property, plant and equipment additions in accounts payable | 2,264 | 5,417 | ||||||
Segment_Information_Tables
Segment Information (Tables) | 3 Months Ended | |||||||||||||||
Mar. 29, 2015 | ||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||
Schedule of Segment Reporting Information, by Segment | Certain information with respect to geographic segments is as follows for the periods indicated: | |||||||||||||||
(In thousands) | Three Months Ended March 29, 2015 | |||||||||||||||
(In thousands) | North America | Europe, Asia and Latin America | Africa | Total | ||||||||||||
Sales | $ | 336,288 | $ | 93,016 | $ | 11,280 | $ | 440,584 | ||||||||
Intersegment sales | (332 | ) | (5,787 | ) | — | (6,119 | ) | |||||||||
Net sales to external customers | $ | 335,956 | $ | 87,229 | $ | 11,280 | $ | 434,465 | ||||||||
Adjusted EBITDA | $ | 29,638 | $ | 8,771 | $ | (621 | ) | $ | 37,788 | |||||||
(In thousands) | Three Months Ended March 30, 2014 | |||||||||||||||
(In thousands) | North America | Europe, Asia and Latin America | Africa | Total | ||||||||||||
Sales | $ | 314,767 | $ | 100,564 | $ | 13,392 | $ | 428,723 | ||||||||
Intersegment sales | (326 | ) | (5,937 | ) | — | (6,263 | ) | |||||||||
Net sales to external customers | $ | 314,441 | $ | 94,627 | $ | 13,392 | $ | 422,460 | ||||||||
Adjusted EBITDA | $ | 16,003 | $ | 3,034 | $ | 681 | $ | 19,718 | ||||||||
Reconciliation of consolidated Adjusted EBITDA to net income (loss) attributable to Masonite | A reconciliation of our consolidated Adjusted EBITDA to net income (loss) attributable to Masonite is set forth as follows for the periods indicated: | |||||||||||||||
Three Months Ended | ||||||||||||||||
(In thousands) | March 29, 2015 | March 30, 2014 | ||||||||||||||
Adjusted EBITDA | $ | 37,788 | $ | 19,718 | ||||||||||||
Less (plus): | ||||||||||||||||
Depreciation | 15,306 | 15,446 | ||||||||||||||
Amortization | 5,011 | 5,691 | ||||||||||||||
Share based compensation expense | 2,379 | 2,283 | ||||||||||||||
Loss (gain) on disposal of property, plant and equipment | (56 | ) | 1,087 | |||||||||||||
Restructuring costs | 2,356 | 721 | ||||||||||||||
Interest expense (income), net | 11,753 | 9,993 | ||||||||||||||
Loss on extinguishment of debt | 28,046 | — | ||||||||||||||
Other expense (income), net | (1,184 | ) | 181 | |||||||||||||
Income tax expense (benefit) | 3,264 | 19 | ||||||||||||||
Loss (income) from discontinued operations, net of tax | 229 | 142 | ||||||||||||||
Net income (loss) attributable to non-controlling interest | 1,736 | 741 | ||||||||||||||
Net income (loss) attributable to Masonite | $ | (31,052 | ) | $ | (16,586 | ) |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 3 Months Ended | |||||||
Mar. 29, 2015 | ||||||||
Earnings Per Share [Abstract] | ||||||||
Schedule of Earnings Per Share | ||||||||
Three Months Ended | ||||||||
(In thousands, except share and per share information) | March 29, 2015 | March 30, 2014 | ||||||
Net income (loss) attributable to Masonite | $ | (31,052 | ) | $ | (16,586 | ) | ||
Income (loss) from discontinued operations, net of tax | (229 | ) | (142 | ) | ||||
Income (loss) from continuing operations attributable to Masonite | $ | (30,823 | ) | $ | (16,444 | ) | ||
Shares used in computing basic and diluted earnings per share | 30,056,085 | 29,186,262 | ||||||
Effect of dilutive securities: | ||||||||
Incremental shares issuable under share compensation plans | — | — | ||||||
Shares used in computing diluted earnings per share | 30,056,085 | 29,186,262 | ||||||
Basic earnings (loss) per common share attributable to Masonite: | ||||||||
Continuing operations attributable to Masonite | $ | (1.02 | ) | $ | (0.56 | ) | ||
Discontinued operations attributable to Masonite, net of tax | (0.01 | ) | — | |||||
Total Basic earnings per common share attributable to Masonite | $ | (1.03 | ) | $ | (0.56 | ) | ||
Diluted earnings (loss) per common share attributable to Masonite: | ||||||||
Continuing operations attributable to Masonite | $ | (1.02 | ) | $ | (0.56 | ) | ||
Discontinued operations attributable to Masonite, net of tax | (0.01 | ) | — | |||||
Total Diluted earnings per common share attributable to Masonite | $ | (1.03 | ) | $ | (0.56 | ) | ||
Incremental shares issuable from anti-dilutive instruments excluded from diluted earnings per common share: | ||||||||
Warrants | 2,500,001 | 4,953,654 | ||||||
Stock appreciation rights | 489,427 | 818,895 | ||||||
Restricted stock units | 472,556 | 597,153 | ||||||
Other_Comprehensive_Income_and1
Other Comprehensive Income and Accumulated Other Comprehensive Income (Tables) | 3 Months Ended | |||||||
Mar. 29, 2015 | ||||||||
Equity [Abstract] | ||||||||
Schedule of components of accumulated other comprehensive income (loss) | A rollforward of the components of accumulated other comprehensive income (loss) is as follows for the periods indicated: | |||||||
Three Months Ended | ||||||||
(In thousands) | March 29, 2015 | March 30, 2014 | ||||||
Accumulated foreign exchange gains (losses), beginning of period | $ | (57,473 | ) | $ | (8,797 | ) | ||
Foreign exchange gain (loss) | (35,140 | ) | (7,485 | ) | ||||
Income tax benefit (expense) on foreign exchange gain (loss) | — | — | ||||||
Less: foreign exchange gain (loss) attributable to non-controlling interest | (685 | ) | (471 | ) | ||||
Accumulated foreign exchange gains (losses), end of period | (91,928 | ) | (15,811 | ) | ||||
Accumulated amortization of actuarial net losses, beginning of period | 1,890 | 1,890 | ||||||
Amortization of actuarial net losses | 220 | — | ||||||
Income tax benefit (expense) on amortization of actuarial net losses | (87 | ) | — | |||||
Accumulated amortization of actuarial net losses, end of period | 2,023 | 1,890 | ||||||
Accumulated pension and other post-retirement adjustments | (20,676 | ) | (12,694 | ) | ||||
Accumulated other comprehensive income (loss) | $ | (110,581 | ) | $ | (26,615 | ) | ||
Other comprehensive income (loss), net of tax: | $ | (35,007 | ) | $ | (7,485 | ) | ||
Less: other comprehensive income (loss) attributable to non-controlling interest | (685 | ) | (471 | ) | ||||
Other comprehensive income (loss) attributable to Masonite | $ | (34,322 | ) | $ | (7,014 | ) |
Variable_Interest_Entity_Table
Variable Interest Entity (Tables) | 3 Months Ended | |||||||
Mar. 29, 2015 | ||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||
Consolidated results of the VIE | Our net cumulative investment in the VIE was comprised of the following as of the dates indicated: | |||||||
(In thousands) | March 29, | December 28, | ||||||
2015 | 2014 | |||||||
Current assets | $ | 9,324 | $ | 8,346 | ||||
Property, plant and equipment, net | 19,355 | 17,788 | ||||||
Long-term deferred income taxes | 11,797 | 12,321 | ||||||
Other assets, net | 2,387 | 2,234 | ||||||
Current liabilities | (2,032 | ) | (2,496 | ) | ||||
Other long-term liabilities | (4,249 | ) | (4,479 | ) | ||||
Non-controlling interest | (5,678 | ) | (7,785 | ) | ||||
Net assets of the VIE consolidated by Masonite | $ | 30,904 | $ | 25,929 | ||||
Business_Overview_and_Signific1
Business Overview and Significant Accounting Policies (Details) | Mar. 29, 2015 |
Country | |
facility | |
Accounting Policies [Abstract] | |
Manufacturing locations | 62 |
Number of countries | 10 |
Acquisitions_Narrative_Details
Acquisitions (Narrative) (Details) (USD $) | 3 Months Ended | 0 Months Ended | ||
Mar. 29, 2015 | Mar. 30, 2014 | Dec. 01, 2014 | Feb. 24, 2014 | |
Business Acquisition [Line Items] | ||||
Document Period End Date | 29-Mar-15 | |||
Cash consideration, net of cash acquired | $0 | $50,342,000 | ||
Harring Doors | ||||
Business Acquisition [Line Items] | ||||
Cash consideration, net of cash acquired | 3,901,000 | |||
Acquired equity interests, percent | 100.00% | |||
Goodwill | 1,951,000 | |||
Gross contractual value of acquired trade receivables | 1,200,000 | |||
Door-Stop | ||||
Business Acquisition [Line Items] | ||||
Cash consideration, net of cash acquired | 50,355,000 | |||
Acquired equity interests, percent | 100.00% | |||
Goodwill | 20,359,000 | |||
Gross contractual value of acquired trade receivables | $2,800,000 | |||
Customer Relationships | Door-Stop | ||||
Business Acquisition [Line Items] | ||||
Amortization period for acquired customer relationships | 9 years 10 months 29 days |
Acquisitions_Aggregate_Conside
Acquisitions (Aggregate Consideration) (Details) (USD $) | 3 Months Ended | 0 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 | Dec. 01, 2014 | Feb. 24, 2014 | Dec. 28, 2014 |
Business Acquisition [Line Items] | |||||
Cash consideration, net of cash acquired | $0 | $50,342 | |||
Harring Doors | |||||
Business Acquisition [Line Items] | |||||
Accounts receivable | 1,180 | ||||
Inventory | 443 | ||||
Property, plant and equipment | 1,167 | ||||
Goodwill | 1,951 | ||||
Intangible assets | 0 | ||||
Accounts payable and accrued expenses | -731 | ||||
Other assets and liabilities, net | -109 | ||||
Cash consideration, net of cash acquired | 3,901 | ||||
Door-Stop | |||||
Business Acquisition [Line Items] | |||||
Accounts receivable | 2,648 | ||||
Inventory | 2,665 | ||||
Property, plant and equipment | 4,303 | ||||
Goodwill | 20,359 | ||||
Intangible assets | 28,776 | ||||
Accounts payable and accrued expenses | -3,492 | ||||
Other assets and liabilities, net | -4,904 | ||||
Cash consideration, net of cash acquired | 50,355 | ||||
Business Acquisitions 2014 | |||||
Business Acquisition [Line Items] | |||||
Accounts receivable | 3,828 | ||||
Inventory | 3,108 | ||||
Property, plant and equipment | 5,470 | ||||
Goodwill | 22,310 | ||||
Intangible assets | 28,776 | ||||
Accounts payable and accrued expenses | -4,223 | ||||
Other assets and liabilities, net | -5,013 | ||||
Cash consideration, net of cash acquired | $54,256 |
Acquisitions_Revenues_and_Earn
Acquisitions Revenues and Earnings (Details) (Door-Stop, USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 |
Door-Stop | ||
Business Acquisition [Line Items] | ||
Net Sales | $11,866 | $5,009 |
Net income (loss) attributable to Masonite | $1,126 | $654 |
Acquisitions_Pro_Forma_Informa
Acquisitions (Pro Forma Information) (Details) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 |
Business Acquisition, Pro Forma Information [Line Items] | ||
Net sales | $434,465 | $422,460 |
Pro forma revenue | 429,119 | |
Net income (loss) attributable to Masonite | -31,052 | -16,586 |
Pro forma net income (loss) attributable to Masonite | -15,962 | |
Basic earnings per common share attributable to Masonite (in dollars per share) | ($1.03) | ($0.56) |
Pro forma earnings per share, basic | ($0.55) | |
Diluted earnings per common share attributable to Masonite (in dollars per share) | ($1.03) | ($0.56) |
Pro forma earnings per share, diluted | ($0.55) | |
Door-Stop | ||
Business Acquisition, Pro Forma Information [Line Items] | ||
Pro forma revenue | 6,659 | |
Pro forma net income (loss) attributable to Masonite | $624 |
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Schedule of Goodwill) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 29, 2015 | Dec. 28, 2014 |
Goodwill [Roll Forward] | ||
Goodwill, beginning | $99,199 | |
Goodwill, ending | 98,167 | 99,199 |
North America | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning | 79,818 | |
Foreign exchange fluctuations | -224 | |
Goodwill, ending | 79,594 | |
Europe, Asia and Latin America | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning | 19,381 | |
Foreign exchange fluctuations | -808 | |
Goodwill, ending | 18,573 | |
Operating Segments | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning | 99,199 | |
Foreign exchange fluctuations | -1,032 | |
Goodwill, ending | $98,167 |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets (Cost and Accumulated Amortized Values) (Details) (USD $) | Mar. 29, 2015 | Dec. 28, 2014 |
In Thousands, unless otherwise specified | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | $175,132 | $174,300 |
Finite-lived intangible assets, accumulated amortization | -78,713 | -74,009 |
Finite-lived intangible assets, translation adjustment | -5,571 | -4,031 |
Finite-lived intangible assets, net | 90,848 | 96,260 |
Total intangible assets, gross | 286,185 | 285,353 |
Total intangible assets, translation adjustment | -13,133 | -7,972 |
Total intangible assets, net | 194,339 | 203,372 |
Customer Relationships | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 107,381 | 107,381 |
Finite-lived intangible assets, accumulated amortization | -36,131 | -33,181 |
Finite-lived intangible assets, translation adjustment | -3,360 | -2,360 |
Finite-lived intangible assets, net | 67,890 | 71,840 |
Patents | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 29,162 | 28,630 |
Finite-lived intangible assets, accumulated amortization | -15,339 | -14,696 |
Finite-lived intangible assets, translation adjustment | -676 | -308 |
Finite-lived intangible assets, net | 13,147 | 13,626 |
Software | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 29,132 | 28,832 |
Finite-lived intangible assets, accumulated amortization | -20,259 | -19,322 |
Finite-lived intangible assets, translation adjustment | -87 | 63 |
Finite-lived intangible assets, net | 8,786 | 9,573 |
Other | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 9,457 | 9,457 |
Finite-lived intangible assets, accumulated amortization | -6,984 | -6,810 |
Finite-lived intangible assets, translation adjustment | -1,448 | -1,426 |
Finite-lived intangible assets, net | 1,025 | 1,221 |
Trademarks and Trade Names | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets, gross | 111,053 | 111,053 |
Indefinite-lived intangible assets, net | 103,491 | 107,112 |
Total intangible assets, translation adjustment | ($7,562) | ($3,941) |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets (Estimated Future Amortization of Intangible Assets) (Details) (USD $) | Mar. 29, 2015 |
In Thousands, unless otherwise specified | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2015 (remaining nine months) | $13,966 |
2016 | 17,248 |
2017 | 15,149 |
2018 | 11,885 |
2019 | $11,505 |
Goodwill_and_Intangible_Assets4
Goodwill and Intangible Assets (Narrative) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization of intangible assets | $4,702 | $4,447 |
Accounts_Receivable_Details
Accounts Receivable (Details) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Mar. 29, 2015 | Dec. 28, 2014 |
Customer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Allowance for doubtful accounts | 2,641 | 2,616 |
Accounts Receivable | Customer Concentration Risk | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Concentration risk, customers | 10 | |
Concentration risk, percent | 49.30% | 48.80% |
Inventories_Details
Inventories (Details) (USD $) | Mar. 29, 2015 | Dec. 28, 2014 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ||
Raw materials | $164,519 | $159,763 |
Finished goods | 70,494 | 69,517 |
Provision for obsolete or aged inventory | -6,458 | -6,548 |
Inventories, net | $228,555 | $222,732 |
Property_Plant_and_Equipment_D
Property, Plant and Equipment (Details) (USD $) | Mar. 29, 2015 | Dec. 28, 2014 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $735,708 | $745,914 |
Accumulated depreciation | -180,574 | -169,680 |
Property, plant and equipment, net | 555,134 | 576,234 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 43,462 | 44,971 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 165,049 | 170,344 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $527,197 | $530,599 |
Property_Plant_and_Equipment_N
Property, Plant and Equipment (Narrative) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 |
Property, Plant and Equipment [Abstract] | ||
Depreciation | $15,306 | $15,446 |
LongTerm_Debt_Details
Long-Term Debt (Details) (USD $) | Mar. 29, 2015 | Mar. 23, 2015 | Dec. 28, 2014 |
Debt Instrument [Line Items] | |||
Total long-term debt | $475,000,000 | $511,920,000 | |
Senior Notes | Senior Notes Due 2021 | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | 500,000,000 | ||
Long-term debt | 0 | 500,000,000 | |
Unamortized premium on 2021 Notes | 0 | 11,920,000 | |
Senior Notes | Senior Notes Due 2023 | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | 475,000,000 | ||
Long-term debt | $475,000,000 | $0 |
LongTerm_Debt_Narrative_Detail
Long-Term Debt (Narrative) (Details) (USD $) | 0 Months Ended | 3 Months Ended | 0 Months Ended | 12 Months Ended | |||||||
Jan. 01, 2012 | Mar. 29, 2015 | Mar. 30, 2014 | Mar. 23, 2015 | Dec. 28, 2014 | Dec. 30, 2012 | Jan. 01, 2012 | Jan. 21, 2014 | Mar. 09, 2012 | Apr. 15, 2011 | 31-May-11 | |
company | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Proceeds from issuance of long-term debt | $475,000,000 | $138,688,000 | |||||||||
Return of capital to shareholders | 124,900,000 | 124,900,000 | |||||||||
Dividends, per share, cash paid | $4.54 | ||||||||||
Number of businesses acquired | 8 | ||||||||||
Aggregate consideration | 297,500,000 | ||||||||||
Loss on extinguishment of debt | -28,046,000 | 0 | |||||||||
ABL Facility 2016 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Utilization percentage | 50.00% | ||||||||||
Senior Notes | Senior Notes Due 2021, Redemption | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Transaction issuance cost | -7,800,000 | ||||||||||
Unamortized premium on Senior Notes | -11,500,000 | ||||||||||
Redemption premium | 31,700,000 | ||||||||||
Loss on extinguishment of debt | -28,000,000 | ||||||||||
Senior Notes | Senior Notes, Issued January 2014 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Face Amount | 125,000,000 | ||||||||||
Proceeds from issuance of long-term debt | 136,800,000 | ||||||||||
Transaction issuance cost | -1,900,000 | ||||||||||
Issuance price, percentage | 108.75% | ||||||||||
Unamortized premium on Senior Notes | -10,900,000 | ||||||||||
Senior Notes | Senior Notes, Issued March 2012 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Face Amount | 100,000,000 | ||||||||||
Proceeds from issuance of long-term debt | 101,500,000 | ||||||||||
Transaction issuance cost | -2,000,000 | ||||||||||
Issuance price, percentage | 103.50% | ||||||||||
Unamortized premium on Senior Notes | -3,500,000 | ||||||||||
Senior Notes | Senior Notes, Issued April 2011 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Face Amount | 275,000,000 | ||||||||||
Proceeds from issuance of long-term debt | 265,500,000 | ||||||||||
Transaction issuance cost | -9,500,000 | ||||||||||
Senior Notes | Senior Notes Due 2021 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest expense | 9,500,000 | ||||||||||
Long-term debt | 0 | 500,000,000 | |||||||||
Debt Instrument, Face Amount | 500,000,000 | ||||||||||
Interest rate stated percentage | 8.25% | ||||||||||
Unamortized premium on Senior Notes | 0 | -11,920,000 | |||||||||
Senior Notes | Senior Notes Due 2023 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Long-term debt | 475,000,000 | 0 | |||||||||
Debt Instrument, Face Amount | 475,000,000 | ||||||||||
Interest rate stated percentage | 5.63% | ||||||||||
Proceeds from issuance of long-term debt | 468,100,000 | ||||||||||
Transaction issuance cost | -6,900,000 | ||||||||||
Senior Notes | Senior Notes Due 2023 | Debt Instrument, Redemption, Period One | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Redemption price, percentage | 100.00% | ||||||||||
Redemption price, premium, percentage | 1.00% | ||||||||||
Senior Notes | Senior Notes Due 2023 | Debt Instrument, Redemption, Period Two | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Redemption price, premium, percentage | 0.50% | ||||||||||
Senior Notes | Senior Notes Due 2023 | Debt Instrument, Redemption, Period Three | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Redemption price, percentage | 101.00% | ||||||||||
Senior Notes | Senior Notes Due 2021 and 2023 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest expense | 11,200,000 | ||||||||||
Line of Credit | ABL Facility 2016 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Maximum borrowing capacity | $125,000,000 | ||||||||||
Minimum | ABL Facility 2016 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Unutilized commitment fee percentage | 0.25% | ||||||||||
Minimum | Line of Credit | ABL Facility 2016 | Applicable Margin | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread on variable rate | 2.00% | ||||||||||
Minimum | Line of Credit | ABL Facility 2016 | Base Rate | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread on variable rate | 1.00% | ||||||||||
Maximum | Line of Credit | ABL Facility 2016 | Applicable Margin | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread on variable rate | 2.50% | ||||||||||
Maximum | Line of Credit | ABL Facility 2016 | Base Rate | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread on variable rate | 1.50% | ||||||||||
Maximum | Revolving Credit Facility | ABL Facility 2016 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Unutilized commitment fee percentage | 0.38% |
Share_Based_Compensation_Plans2
Share Based Compensation Plans Narrative (Details) (USD $) | 0 Months Ended | 3 Months Ended | 0 Months Ended | ||||||
Jan. 01, 2012 | Mar. 29, 2015 | Mar. 30, 2014 | Jul. 12, 2012 | Jun. 21, 2013 | Dec. 29, 2013 | Jun. 09, 2009 | Dec. 28, 2014 | Jun. 09, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Share-based compensation | $2,379,000 | $2,283,000 | |||||||
Share based compensation unrecognized | 20,000,000 | ||||||||
Weighted average remaining requisite service period | 2 years 1 month 7 days | ||||||||
Deferred compensation liability | 1,800,000 | ||||||||
Dividends, per share, cash paid | $4.54 | ||||||||
Warrants issued | 4,953,654 | 5,833,335 | 5,833,335 | ||||||
Exercise price of warrants | $50.77 | $55.31 | |||||||
Stock issued upon exercise of warrants | 98,739 | ||||||||
Expiration June 2014 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Warrants issued | 2,453,653 | 3,333,334 | 3,333,334 | ||||||
Stock issued upon exercise of warrants | 98,739 | ||||||||
Expiration June 2016 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Warrants issued | 2,500,001 | 2,500,001 | 2,500,001 | 2,500,001 | 2,500,001 | ||||
Stock issued upon exercise of warrants | 0 | 0 | |||||||
2009 Plan | Management | Common Stock | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Percentage ownership of common equity | 9.55% | ||||||||
Equity awards not to exceed | 3,554,811 | ||||||||
2009 Plan | Director | Common Stock | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Percentage ownership of common equity | 0.90% | ||||||||
Equity awards not to exceed | 335,004 | ||||||||
2012 Plan | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Plan term | 10 years 0 months 0 days | ||||||||
2012 Plan | Common Stock | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Equity awards not to exceed | 1,500,000 | 2,000,000 | |||||||
Additional increase to common shares issuable | 500,000 | ||||||||
Common stock available for future issuance | 1,731,944 | ||||||||
Stock Appreciation Rights (SARs) | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Plan term | 10 years 0 months 0 days | ||||||||
Award vesting period | 4 years 0 months 0 days | ||||||||
Fair value of shares vested | 400,000 | 400,000 | |||||||
Restricted Stock Units (RSUs) | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Award vesting period | 4 years 0 months 0 days | ||||||||
Fair value of shares vested | 1,200,000 | ||||||||
SARs granted, fair value | $10,900,000 | ||||||||
Vesting period | 1 year 0 months 292 days | ||||||||
Units vested | -21,155 | ||||||||
Service Requirement | Restricted Stock Units (RSUs) | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting percentage | 50.00% | ||||||||
Service and Performance Requirements | Restricted Stock Units (RSUs) | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting percentage | 50.00% |
Share_Based_Compensation_Plans3
Share Based Compensation Plans (SARs) (Details) (Stock Appreciation Rights (SARs), USD $) | 0 Months Ended | 3 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Mar. 29, 2015 | Dec. 28, 2014 | Dec. 29, 2013 | Mar. 29, 2015 | Mar. 30, 2014 |
Stock Appreciation Rights (SARs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||||
Outstanding, beginning of period, shares | 1,231,468 | 1,812,658 | |||
Exercised, shares | -141,772 | -130,186 | |||
Cancelled, shares | -800 | -16,210 | |||
Outstanding, end of period, shares | 1,088,896 | 1,231,468 | 1,812,658 | 1,088,896 | 1,666,262 |
Exercisable, shares | 852,059 | 852,059 | 1,308,842 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Aggregate Intrinsic Value & Average Remaining Contractual Life [Abstract] | |||||
Outstanding, beginning of period, aggregate intrinsic value | $48,516 | $59,525 | |||
Exercised, aggregate intrinsic value | 6,546 | ||||
Outstanding, end period, aggregate intrinsic value | 51,253 | 48,516 | 59,525 | 51,253 | 63,569 |
Exercisable, aggregate intrinsic value | $42,831 | $42,831 | $53,593 | ||
Outstanding, beginning of period, weighted average remaining contractual term | 5 years 8 months 16 days | 5 years 10 months 29 days | 6 years 4 months 26 days | 6 years 2 months 13 days | |
Outstanding, end of period, weighted average remaining contractual term | 5 years 8 months 16 days | 5 years 10 months 29 days | 6 years 4 months 26 days | 6 years 2 months 13 days | |
Exercisable, weighted average remaining contractual term | 5 years 0 months 0 days | 5 years 6 months 3 days | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |||||
Outstanding, beginning of period, weighted average exercise price | $19.59 | $18.16 | |||
Exercised, weighted average exercise price | $16.73 | $14.02 | |||
Forfeited, weighted average exercise price | $32.68 | $41.38 | |||
Outstanding, end of period, weighted average exercise price | $19.97 | $19.59 | $18.16 | $19.97 | $18.22 |
Exercisable, weighted average exercise price | $16.73 | $16.73 | $15.42 |
Share_Based_Compensation_Plans4
Share Based Compensation Plans (RSUs) (Details) (Restricted Stock Units (RSUs), USD $) | 3 Months Ended | |||
Mar. 29, 2015 | Mar. 30, 2014 | |||
Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Outstanding, beginning of period (shares) | 543,373 | 618,963 | ||
Granted (shares) | 177,862 | 183,421 | ||
Delivered (shares) | -18,852 | -7,669 | ||
Withheld to cover (shares) | -2,303 | [1] | -2,020 | [1] |
Cancelled (shares) | -1,445 | -542 | ||
Outstanding, end of period (shares) | 698,635 | 792,153 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||||
Outstanding, beginning of period (weighted average grant date fair value) | $34.56 | $22.09 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $0 | |||
Outstanding, end of period (weighted average grant date fair value) | $37.43 | $29.45 | ||
[1] | A portion of the vested RSUs delivered were net share settled to cover the minimum statutory requirements for income and other employment taxes, at the individual participantbs election. We remit the equivalent cash to the appropriate taxing authorities. These net share settlements had the effect of share repurchases by us as we reduced and retired the number of shares that would have otherwise been issued as a result of the vesting. |
Share_Based_Compensation_Plans5
Share Based Compensation Plans Warrants (Details) | 3 Months Ended | ||
Mar. 29, 2015 | Mar. 30, 2014 | Jun. 09, 2009 | |
Class of Warrant or Right [Line Items] | |||
Outstanding, beginning of period | 5,833,335 | 5,833,335 | |
Exercised | -879,681 | ||
Outstanding, end of period | 4,953,654 | 5,833,335 | |
Common shares issued | 98,739 | ||
Expiration June 2016 | |||
Class of Warrant or Right [Line Items] | |||
Outstanding, beginning of period | 2,500,001 | 2,500,001 | 2,500,001 |
Exercised | 0 | 0 | |
Outstanding, end of period | 2,500,001 | 2,500,001 | 2,500,001 |
Common shares issued | 0 | 0 | |
Expiration June 2014 | |||
Class of Warrant or Right [Line Items] | |||
Outstanding, beginning of period | 3,333,334 | 3,333,334 | |
Exercised | -879,681 | ||
Outstanding, end of period | 2,453,653 | 3,333,334 | |
Common shares issued | 98,739 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | Mar. 29, 2015 |
In Thousands, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | |
2015 (remaining nine months) | $12,275 |
2016 | 13,317 |
2017 | 10,985 |
2018 | 10,029 |
2019 | 9,307 |
Thereafter | 69,524 |
Total future minimum lease payments | $125,437 |
Commitments_and_Contingencies_2
Commitments and Contingencies (Narrative) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 |
Operating Leased Assets [Line Items] | ||
Lease renewal term | 5 years 0 months 0 days | |
Rent expense | $5.70 | $6.20 |
Minimum | ||
Operating Leased Assets [Line Items] | ||
Lease renewal options | 0 | |
Maximum | ||
Operating Leased Assets [Line Items] | ||
Lease renewal options | 3 |
Restructuring_Costs_Restructur
Restructuring Costs (Restructuring Costs by Plan) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | $2,356 | $721 |
Cumulative amount incurred to date | 50,219 | |
North America | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 628 | 32 |
Cumulative amount incurred to date | 13,973 | |
Europe, Asia and Latin America | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 1,728 | 689 |
Cumulative amount incurred to date | 35,097 | |
Africa | ||
Restructuring Cost and Reserve [Line Items] | ||
Cumulative amount incurred to date | 1,149 | |
2015 Plan | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 2,311 | 0 |
Cumulative amount incurred to date | 2,311 | |
2015 Plan | North America | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 624 | 0 |
Cumulative amount incurred to date | 624 | |
2015 Plan | Europe, Asia and Latin America | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 1,687 | 0 |
Cumulative amount incurred to date | 1,687 | |
2015 Plan | Africa | ||
Restructuring Cost and Reserve [Line Items] | ||
Cumulative amount incurred to date | 0 | |
2014 Plan | ||
Restructuring Cost and Reserve [Line Items] | ||
Cumulative amount incurred to date | 9,503 | |
2014 Plan | North America | ||
Restructuring Cost and Reserve [Line Items] | ||
Cumulative amount incurred to date | 0 | |
2014 Plan | Europe, Asia and Latin America | ||
Restructuring Cost and Reserve [Line Items] | ||
Cumulative amount incurred to date | 9,503 | |
2014 Plan | Africa | ||
Restructuring Cost and Reserve [Line Items] | ||
Cumulative amount incurred to date | 0 | |
2013 Plan | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 45 | 689 |
Cumulative amount incurred to date | 7,807 | |
2013 Plan | North America | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 4 | 15 |
Cumulative amount incurred to date | 2,953 | |
2013 Plan | Europe, Asia and Latin America | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 41 | 674 |
Cumulative amount incurred to date | 3,705 | |
2013 Plan | Africa | ||
Restructuring Cost and Reserve [Line Items] | ||
Cumulative amount incurred to date | 1,149 | |
2012 and Prior Plans | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 0 | 32 |
Cumulative amount incurred to date | 30,598 | |
2012 and Prior Plans | North America | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 0 | 17 |
Cumulative amount incurred to date | 10,396 | |
2012 and Prior Plans | Europe, Asia and Latin America | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 0 | 15 |
Cumulative amount incurred to date | 20,202 | |
2012 and Prior Plans | Africa | ||
Restructuring Cost and Reserve [Line Items] | ||
Cumulative amount incurred to date | $0 |
Restructuring_Costs_Narrative_
Restructuring Costs (Narrative) (Details) (2015 Plan, USD $) | Mar. 29, 2015 |
In Millions, unless otherwise specified | |
2015 Plan | |
Restructuring Cost and Reserve [Line Items] | |
Additional restructuring cost expected to incur | $3 |
Restructuring_Costs_Details
Restructuring Costs (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 | Dec. 28, 2014 |
Restructuring Reserve [Roll Forward] | |||
Restructuring reserve | $2,333 | $4,409 | $4,409 |
Restructuring Charges | 2,356 | 721 | |
Payments | 1,583 | 2,039 | |
Restructuring reserve | 3,106 | 3,091 | |
Severance | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Charges | 1,536 | 79 | |
Closure Costs | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Charges | 820 | 642 | |
2015 Plan | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring reserve | 0 | ||
Restructuring Charges | 2,311 | 0 | |
Payments | 998 | ||
Restructuring reserve | 1,313 | ||
2015 Plan | Severance | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Charges | 1,536 | ||
2015 Plan | Closure Costs | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Charges | 775 | ||
2014 Plan | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring reserve | 839 | ||
Payments | 223 | ||
Restructuring reserve | 616 | ||
2014 Plan | Severance | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Charges | 0 | ||
2014 Plan | Closure Costs | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Charges | 0 | ||
2013 Plan | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring reserve | 341 | 2,348 | 2,348 |
Restructuring Charges | 45 | 689 | |
Payments | 65 | 1,839 | |
Restructuring reserve | 321 | 1,198 | |
2013 Plan | Severance | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Charges | 0 | 77 | |
2013 Plan | Closure Costs | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Charges | 45 | 612 | |
2012 and Prior Plans | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring reserve | 1,153 | 2,061 | 2,061 |
Restructuring Charges | 0 | 32 | |
Payments | 297 | 200 | |
Restructuring reserve | 856 | 1,893 | |
2012 and Prior Plans | Severance | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Charges | 0 | 2 | |
2012 and Prior Plans | Closure Costs | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Charges | $0 | $30 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 |
Income Tax Disclosure [Abstract] | ||
Current | $1,499 | $1,069 |
Deferred | 1,765 | -1,050 |
Income tax expense (benefit) | $3,264 | $19 |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 29, 2015 | Dec. 28, 2014 |
Income Tax Disclosure [Abstract] | ||
Canadian federal statutory rate | 26.50% | |
Deferred tax asset, valuation allowance | $45.20 | $35.80 |
Supplemental_Cash_Flow_Informa2
Supplemental Cash Flow Information (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 |
Transactions involving cash: | ||
Interest paid | $19,906 | $51 |
Interest received | 167 | 101 |
Income taxes paid | 1,507 | 1,415 |
Income tax refunds | 9 | 0 |
Non-cash transactions: | ||
Property, plant and equipment additions in accounts payable | $2,264 | $5,417 |
Segment_Information_Geographic
Segment Information (Geographic Segments Information) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Sales | $434,465 | $422,460 |
Adjusted EBITDA | 37,788 | 19,718 |
Operating Segments | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Sales | 440,584 | 428,723 |
Intersegment Eliminations | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Sales | -6,119 | -6,263 |
North America | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Sales | 335,956 | 314,441 |
Adjusted EBITDA | 29,638 | 16,003 |
North America | Operating Segments | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Sales | 336,288 | 314,767 |
North America | Intersegment Eliminations | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Sales | -332 | -326 |
Europe, Asia and Latin America | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Sales | 87,229 | 94,627 |
Adjusted EBITDA | 8,771 | 3,034 |
Europe, Asia and Latin America | Operating Segments | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Sales | 93,016 | 100,564 |
Europe, Asia and Latin America | Intersegment Eliminations | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Sales | -5,787 | -5,937 |
Africa | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Sales | 11,280 | 13,392 |
Adjusted EBITDA | -621 | 681 |
Africa | Operating Segments | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Sales | 11,280 | 13,392 |
Africa | Intersegment Eliminations | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Sales | $0 | $0 |
Segment_Information_Reconcilia
Segment Information (Reconciliation of Consolidated Adjusted EBITDA to Net Income (Loss)) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 |
Segment Reporting [Abstract] | ||
Adjusted EBITDA | $37,788 | $19,718 |
Depreciation | 15,306 | 15,446 |
Amortization | 5,011 | 5,691 |
Share based compensation expense | 2,379 | 2,283 |
Loss (gain) on disposal of property, plant and equipment | -56 | 1,087 |
Restructuring costs | 2,356 | 721 |
Interest expense (income), net | 11,753 | 9,993 |
Loss on extinguishment of debt | 28,046 | 0 |
Other expense (income), net | -1,184 | 181 |
Income tax expense (benefit) | 3,264 | 19 |
Loss (income) from discontinued operations, net of tax | 229 | 142 |
Net income (loss) attributable to non-controlling interest | 1,736 | 741 |
Net income (loss) attributable to Masonite | ($31,052) | ($16,586) |
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Details) (Senior Notes, Fair Value, Inputs, Level 2, USD $) | Mar. 29, 2015 | Dec. 28, 2014 |
In Millions, unless otherwise specified | ||
Estimate of Fair Value Measurement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Estimated fair value of senior notes | $491.70 | $532.50 |
Reported Value Measurement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Estimated fair value of senior notes | $475 | $511.90 |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Net income (loss) attributable to Masonite | ($31,052) | ($16,586) |
Income (loss) from discontinued operations, net of tax | -229 | -142 |
Income (loss) from continuing operations attributable to Masonite | ($30,823) | ($16,444) |
Effect of dilutive securities: | ||
Shares used in computing basic and diluted earnings per share | 30,056,085 | 29,186,262 |
Incremental shares issuable under share compensation plans | 0 | 0 |
Shares used in computing diluted earnings per share | 30,056,085 | 29,186,262 |
Basic earnings (loss) per common share attributable to Masonite: | ||
Continuing operations attributable to Masonite | ($1.02) | ($0.56) |
Discontinued operations attributable to Masonite, net of tax | ($0.01) | $0 |
Total Basic earnings per common share attributable to Masonite | ($1.03) | ($0.56) |
Continuing operations attributable to Masonite | ($1.02) | ($0.56) |
Discontinued operations attributable to Masonite, net of tax | ($0.01) | $0 |
Total Diluted earnings per common share attributable to Masonite | ($1.03) | ($0.56) |
Warrants | ||
Incremental shares issuable from anti-dilutive instruments excluded from diluted earnings per common share: | ||
Antidilutive securities excluded from computation of earnings per share, amount | 2,500,001 | 4,953,654 |
Stock appreciation rights | ||
Incremental shares issuable from anti-dilutive instruments excluded from diluted earnings per common share: | ||
Antidilutive securities excluded from computation of earnings per share, amount | 489,427 | 818,895 |
Restricted stock units | ||
Incremental shares issuable from anti-dilutive instruments excluded from diluted earnings per common share: | ||
Antidilutive securities excluded from computation of earnings per share, amount | 472,556 | 597,153 |
Other_Comprehensive_Income_and2
Other Comprehensive Income and Accumulated Other Comprehensive Income (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 | Dec. 28, 2014 |
Accumulated Foreign Exchange Gains (Losses) [Roll Forward] | |||
Accumulated foreign exchange gains (losses), beginning of period | ($57,473) | ($8,797) | ($8,797) |
Foreign exchange gain (loss) | -35,140 | -7,485 | |
Income tax benefit (expense) on foreign exchange gain (loss) | 0 | 0 | |
Less: foreign exchange gain (loss) attributable to non-controlling interest | -685 | -471 | |
Accumulated foreign exchange gains (losses), end of period | -91,928 | -15,811 | -57,473 |
Accumulated Amortization of Actuarial Net Losses [Roll Forward] | |||
Accumulated amortization of actuarial net losses, beginning of period | 1,890 | 1,890 | 1,890 |
Amortization of actuarial net losses | 220 | 0 | |
Income tax benefit (expense) on amortization of actuarial net losses | -87 | 0 | |
Accumulated amortization of actuarial net losses, end of period | 2,023 | 1,890 | 1,890 |
Accumulated Pension and Other Post-Retirement Adjustments [Roll Forward] | |||
Accumulated pension and other post-retirement adjustments | 20,676 | 12,694 | |
Accumulated other comprehensive income (loss) | -110,581 | -26,615 | -76,259 |
Other comprehensive income (loss), net of tax: | -35,007 | -7,485 | -57,636 |
Less: other comprehensive income (loss) attributable to non-controlling interest | -685 | -471 | |
Other comprehensive income (loss) attributable to Masonite | ($34,322) | ($7,014) |
Variable_Interest_Entity_Detai
Variable Interest Entity (Details) (USD $) | Mar. 29, 2015 | Dec. 28, 2014 |
In Thousands, unless otherwise specified | ||
Variable Interest Entity [Line Items] | ||
Current assets | $616,977 | $713,343 |
Property, plant and equipment, net | 555,134 | 576,234 |
Long-term deferred income taxes | 19,135 | 20,697 |
Other assets, net | 23,567 | 24,879 |
Current liabilities | -211,458 | -237,241 |
Other long-term liabilities | -52,005 | -54,114 |
Net assets of the VIE consolidated by Masonite | 646,601 | 709,434 |
Variable Interest Entity, Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Current assets | 9,324 | 8,346 |
Property, plant and equipment, net | 19,355 | 17,788 |
Long-term deferred income taxes | 11,797 | 12,321 |
Other assets, net | 2,387 | 2,234 |
Current liabilities | -2,032 | -2,496 |
Other long-term liabilities | -4,249 | -4,479 |
Non-controlling interest | -5,678 | -7,785 |
Net assets of the VIE consolidated by Masonite | $30,904 | $25,929 |
Variable_Interest_Entity_Narra
Variable Interest Entity (Narrative) (Details) (USD $) | Mar. 29, 2015 | Dec. 28, 2014 | Mar. 30, 2014 | Dec. 29, 2013 |
In Thousands, unless otherwise specified | ||||
Variable Interest Entity [Line Items] | ||||
Cash and cash equivalents | $90,101 | $192,037 | $166,264 | $100,873 |
Variable Interest Entity, Primary Beneficiary | ||||
Variable Interest Entity [Line Items] | ||||
Number of variable interest entities | 1 | 1 | ||
Cash and cash equivalents | $4,400 | $3,100 |
Subsequent_Events_Narrative_De
Subsequent Events (Narrative) (Details) (USD $) | 3 Months Ended | 0 Months Ended | |
In Millions, unless otherwise specified | Mar. 29, 2015 | Apr. 09, 2015 | 31-May-11 |
Line of Credit | ABL Facility 2016 | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $125 | ||
Minimum | ABL Facility 2016 | |||
Debt Instrument [Line Items] | |||
Unutilized commitment fee percentage | 0.25% | ||
Minimum | Line of Credit | ABL Facility 2016 | Base Rate | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.00% | ||
Maximum | Line of Credit | ABL Facility 2016 | Base Rate | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.50% | ||
Subsequent Event | Line of Credit | ABL Facility 2020 | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $150 | ||
Maximum pro forma secured leverage ratio | 4.5 | ||
Subsequent Event | Minimum | ABL Facility 2020 | |||
Debt Instrument [Line Items] | |||
Unutilized commitment fee percentage | 0.25% | ||
Subsequent Event | Minimum | Line of Credit | ABL Facility 2020 | Base Rate | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 0.25% | ||
Subsequent Event | Minimum | Line of Credit | ABL Facility 2020 | Eurodollar Rate | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.25% | ||
Subsequent Event | Maximum | Line of Credit | ABL Facility 2020 | Base Rate | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 0.75% | ||
Subsequent Event | Maximum | Line of Credit | ABL Facility 2020 | Eurodollar Rate | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.75% |