Document
Document - shares | 3 Months Ended | |
Apr. 03, 2016 | May. 02, 2016 | |
Entity [Abstract] | ||
Entity Registrant Name | MASONITE INTERNATIONAL CORPORATION | |
Entity Central Index Key | 893,691 | |
Current Fiscal Year End Date | --01-01 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Apr. 3, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 30,303,303 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 03, 2016 | Mar. 29, 2015 | |
Statement of Comprehensive Income [Abstract] | ||
Net sales | $ 489,305 | $ 434,465 |
Cost of goods sold | 391,060 | 361,156 |
Gross profit | 98,245 | 73,309 |
Selling, general and administration expenses | 64,898 | 58,161 |
Restructuring costs | 19 | 2,356 |
Operating income (loss) | 33,328 | 12,792 |
Interest expense (income), net | 7,232 | 11,753 |
Loss on extinguishment of debt | 0 | 28,046 |
Other expense (income), net | 786 | (1,184) |
Income (loss) from continuing operations before income tax expense (benefit) | 25,310 | (25,823) |
Income tax expense (benefit) | 6,210 | 3,264 |
Income (loss) from continuing operations | 19,100 | (29,087) |
Income (loss) from discontinued operations, net of tax | (188) | (229) |
Net income (loss) | 18,912 | (29,316) |
Less: net income (loss) attributable to non-controlling interest | 1,084 | 1,736 |
Net income (loss) attributable to Masonite | $ 17,828 | $ (31,052) |
Earnings (loss) per common share attributable to Masonite: | ||
Basic earnings per common share attributable to Masonite (in dollars per share) | $ 0.58 | $ (1.03) |
Diluted earnings per common share attributable to Masonite (in dollars per share) | 0.57 | (1.03) |
Earnings (loss) per common share from continuing operations attributable to Masonite: | ||
Basic (in dollars per share) | 0.59 | (1.02) |
Diluted (in dollars per share) | $ 0.57 | $ (1.02) |
Other comprehensive income (loss): | ||
Net income (loss) | $ 18,912 | $ (29,316) |
Foreign exchange gain (loss) | 3,872 | (35,140) |
Amortization of actuarial net losses | (242) | (220) |
Income tax benefit (expense) related to other comprehensive income (loss) | (96) | (87) |
Other comprehensive income (loss), net of tax: | (4,018) | 35,007 |
Comprehensive income (loss) | 22,930 | (64,323) |
Less: comprehensive income (loss) attributable to non-controlling interest | 1,571 | 1,051 |
Comprehensive income (loss) attributable to Masonite | $ 21,359 | $ (65,374) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Apr. 03, 2016 | Jan. 03, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 49,982 | $ 89,187 |
Restricted cash | 12,646 | 12,645 |
Accounts receivable, net | 266,010 | 224,976 |
Inventories, net | 219,251 | 208,393 |
Prepaid expenses | 22,683 | 21,983 |
Income taxes receivable | 3,372 | 1,762 |
Total current assets | 573,944 | 558,946 |
Property, plant and equipment, net | 539,175 | 534,234 |
Investment in equity investees | 19,239 | 18,811 |
Goodwill | 126,789 | 128,170 |
Intangible assets, net | 218,056 | 225,932 |
Long-term deferred income taxes | 11,950 | 16,899 |
Other assets, net | 17,327 | 16,157 |
Total assets | 1,506,480 | 1,499,149 |
Current liabilities: | ||
Accounts payable | 109,187 | 96,480 |
Accrued expenses | 120,839 | 136,029 |
Income taxes payable | 733 | 9 |
Total current liabilities | 230,759 | 232,518 |
Long-term debt | 469,032 | 468,856 |
Long-term deferred income taxes | 98,242 | 98,682 |
Other liabilities | 42,492 | 43,527 |
Total liabilities | $ 840,525 | $ 843,583 |
Commitments and Contingencies (Note 9) | ||
Equity: | ||
Share capital: unlimited shares authorized, no par value, 30,335,134 and 30,427,865 shares issued and outstanding as of April 3, 2016, and January 3, 2016, respectively | $ 661,599 | $ 663,600 |
Additional paid-in capital | 231,561 | 231,363 |
Accumulated deficit | (137,158) | (144,628) |
Accumulated other comprehensive income (loss) | (104,417) | (107,948) |
Total equity attributable to Masonite | 651,585 | 642,387 |
Equity attributable to non-controlling interests | 14,370 | 13,179 |
Total equity | 665,955 | 655,566 |
Total liabilities and equity | $ 1,506,480 | $ 1,499,149 |
Condensed Consolidated Balance4
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - shares | Apr. 03, 2016 | Jan. 03, 2016 |
Statement of Financial Position [Abstract] | ||
Shares issued | 30,335,134 | 30,427,865 |
Shares outstanding | 30,335,134 | 30,427,865 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Changes in Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) | Total Equity Attributable to Masonite | Equity Attributable to Noncontrolling Interests |
Opening Balance, Shares at Dec. 28, 2014 | 30,015,321 | ||||||
Opening Balance, Value at Dec. 28, 2014 | $ 735,499 | $ 657,292 | $ 225,918 | $ (97,517) | $ (76,259) | $ 709,434 | $ 26,065 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | (42,649) | (47,111) | (47,111) | 4,462 | |||
Other comprehensive income (loss), net of tax | (32,789) | (31,689) | (31,689) | (1,100) | |||
Dividends to non-controlling interests | (5,797) | 0 | (5,797) | ||||
Deconsolidation of non-controlling interest | (10,451) | (10,451) | |||||
Share based compensation expense | 13,236 | 13,236 | 13,236 | ||||
Common shares issued for delivery of share based awards, Shares | 399,198 | ||||||
Common shares issued for delivery of share based awards, Value | 0 | $ 5,460 | (5,460) | 0 | |||
Common shares withheld to cover income taxes payable due to delivery of share based awards | (2,114) | (2,114) | (2,114) | ||||
Common shares issued under employee stock purchase plan | 12,913 | ||||||
Common shares issued under employee stock purchase plan, value | 631 | $ 846 | (215) | 631 | |||
Common shares issued for exercise of warrants, Shares | 433 | ||||||
Common shares issued for exercise of warrants, Value | $ 0 | $ 2 | (2) | 0 | |||
Ending Balance, Shares at Jan. 03, 2016 | 30,427,865 | 30,427,865 | |||||
Ending Balance, Value at Jan. 03, 2016 | $ 655,566 | $ 663,600 | 231,363 | (144,628) | (107,948) | 642,387 | 13,179 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 18,912 | 17,828 | 17,828 | 1,084 | |||
Other comprehensive income (loss), net of tax | 4,018 | 3,531 | 3,531 | 487 | |||
Dividends to non-controlling interests | (380) | 0 | (380) | ||||
Share based compensation expense | 3,728 | 3,728 | 3,728 | ||||
Common shares issued for delivery of share based awards, Shares | 49,409 | ||||||
Common shares issued for delivery of share based awards, Value | 0 | $ 1,906 | (1,906) | 0 | |||
Common shares withheld to cover income taxes payable due to delivery of share based awards | (278) | (278) | (278) | ||||
Common shares issued under employee stock purchase plan | 9,126 | ||||||
Common shares issued under employee stock purchase plan, value | 415 | $ 506 | (91) | 415 | |||
Common shares issued for exercise of warrants, Shares | 108,274 | ||||||
Common shares issued for exercise of warrants, Value | 0 | $ 1,255 | (1,255) | 0 | |||
Common shares repurchased and retired, Shares | (259,540) | ||||||
Common shares repurchased and retired, Value | $ (16,026) | $ (5,668) | (10,358) | (16,026) | |||
Ending Balance, Shares at Apr. 03, 2016 | 30,335,134 | 30,335,134 | |||||
Ending Balance, Value at Apr. 03, 2016 | $ 665,955 | $ 661,599 | $ 231,561 | $ (137,158) | $ (104,417) | $ 651,585 | $ 14,370 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 03, 2016 | Mar. 29, 2015 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 18,912 | $ (29,316) |
Adjustments to reconcile net income (loss) to net cash flow provided by (used in) operating activities: | ||
Loss (income) from discontinued operations, net of tax | 188 | 229 |
Loss on extinguishment of debt | 0 | 28,046 |
Depreciation | 14,570 | 15,306 |
Amortization | 6,464 | 5,011 |
Share based compensation expense | 3,728 | 2,379 |
Deferred income taxes | 4,368 | 1,765 |
Unrealized foreign exchange loss (gain) | 1,428 | (991) |
Share of loss (income) from equity investees, net of tax | (428) | (165) |
Dividend from equity investee | 0 | 1,440 |
Pension and post-retirement expense (funding), net | (1,443) | (1,407) |
Non-cash accruals and interest | 606 | (6) |
Loss (gain) on sale of property, plant and equipment | 132 | (56) |
Accounts receivable | (41,718) | (8,312) |
Inventories | (9,839) | (11,956) |
Prepaid expenses | (365) | (2,950) |
Accounts payable and accrued expenses | 7,258 | (17,116) |
Other assets and liabilities | (694) | (1,868) |
Net cash flow provided by (used in) operating activities | 3,167 | (19,967) |
Cash flows from investing activities: | ||
Proceeds from sale of property, plant and equipment | 57 | 279 |
Additions to property, plant and equipment | (23,756) | (10,190) |
Other investing activities | (584) | (830) |
Net cash flow provided by (used in) investing activities | (24,283) | (10,741) |
Cash flows from financing activities: | ||
Proceeds from issuance of long-term debt | 0 | 475,000 |
Repayments of long-term debt | (34) | (500,000) |
Payments of long-term debt extinguishment costs | 0 | (31,691) |
Payment of debt issuance costs | 0 | (6,863) |
Minimum tax withholding on share based awards | 278 | 139 |
Distributions to non-controlling interests | 380 | 500 |
Repurchases of common stock | 16,026 | 0 |
Net cash flow provided by (used in) financing activities | (16,718) | (64,193) |
Net foreign currency translation adjustment on cash | (1,371) | (7,035) |
Increase (decrease) in cash and cash equivalents | (39,205) | (101,936) |
Cash and cash equivalents, beginning of period | 89,187 | 192,037 |
Cash and cash equivalents, at end of period | $ 49,982 | $ 90,101 |
Business Overview and Significa
Business Overview and Significant Accounting Policies | 3 Months Ended |
Apr. 03, 2016 | |
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 65 manufacturing locations in 9 countries and sells doors to customers throughout the world, including the United States, Canada and the United Kingdom. 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 January 3, 2016, as filed with the SEC. There have been no changes in the significant accounting policies from those that were disclosed in the 2015 audited consolidated financial statements, other than as noted below. 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. Changes in Accounting Standards and Policies Adoption of Recent Accounting Pronouncements In September 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") 2015-16, "Simplifying the Accounting for Measurement-Period Adjustments," which amends Accounting Standards Codification ("ASC") 805, "Business Combinations." This ASU eliminates the requirement to retrospectively account for measurement-period adjustments and instead recognize such adjustments in the reporting period in which the adjustments are determined. This ASU is effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years; early adoption is permitted and prospective application is required. The adoption of this standard did not have a material impact on the presentation of our financial statements. 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 fiscal years beginning after December 15, 2015, and interim periods within those fiscal years; early adoption is permitted and prospective application is required. The adoption of this standard did not have a material impact on the presentation of 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 fiscal years beginning after December 15, 2015, and interim periods within those fiscal years; early adoption is permitted and either full retrospective or modified retrospective application is required at the entity's option. 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 March 2016, the FASB issued ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting”, which amends ASC 718 “Compensation - Stock Compensation”. This ASU simplifies several aspects of the accounting for employee share-based award transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. Under the ASU, an entity recognizes all excess tax benefits and tax deficiencies resulting from the exercise or vesting of a share-based award to an employee. It also allows an entity to elect, as an accounting policy, either to continue to estimate forfeitures of share-based awards (as currently required) or to account for forfeitures when they occur. Additionally, the ASU modifies the current exception to liability classification of an award when an employer uses a net-settlement feature to withhold shares to meet the employer’s minimum statutory tax withholding requirement. This ASU is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years; early adoption is permitted and varying types of application are required for the different aspects of the standard. We are in the process of evaluating this guidance to determine the impact it will have on our financial statements. In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)", which will replace the existing guidance in ASC 840, "Leases." The updated standard aims to increase transparency and comparability among organizations by requiring lessees to recognize lease assets and lease liabilities on the balance sheet and requiring disclosure of key information about leasing arrangements. This ASU is effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods; early adoption is permitted and modified retrospective application is required. We are in the process of evaluating this guidance to determine the impact it will have on our financial statements. |
Acquisitions, disposition and d
Acquisitions, disposition and deconsolidated entities | 3 Months Ended |
Apr. 03, 2016 | |
Business Combinations [Abstract] | |
Acquisitions, disposition and deconsolidated entities | Acquisitions and Disposition 2015 Acquisitions On October 1, 2015, we completed the acquisition of USA Wood Door, Inc. (“USA Wood Door”), based in Thorofare, New Jersey. We acquired 100% of the equity interests in USA Wood Door for consideration of approximately $13.7 million , net of cash acquired. USA Wood Door is a supplier of architectural and commercial wood doors in the Eastern United States providing door and hardware distributors with machining, resizing and value-added additions to both unfinished and prefinished doors in short lead times. The excess purchase price over the fair value of net assets acquired of $8.9 million was allocated to goodwill and relates to the Architectural segment. The goodwill principally represents the anticipated synergies to be gained from the integration into our existing Architectural door business. Under Section 338 of the Internal Revenue Code, the acquisition was treated as if it was an asset purchase. Generally, the tax basis of the assets will equal the fair market value at the time of the acquisition and the goodwill is deductible for tax purposes. The USA Wood Door acquisition acts as an extension of our distribution network in North America. On August 5, 2015, we completed the acquisition of Hickman Industries Limited ("Hickman"), headquartered in Wolverhampton, England, for total consideration of $88.0 million , net of cash acquired. We acquired 100% of the equity interests in Hickman through the purchase of all of the outstanding shares of common stock at the acquisition date. Hickman is a leading supplier of doorkits (similar to fully finished prehung door units) and other millwork in the United Kingdom and their business of providing doorkit solutions to the homebuilder market in the United Kingdom is a natural extension of our existing business in the United Kingdom. The excess purchase price over the fair value of net assets acquired of $18.2 million was allocated to goodwill. The goodwill principally represents anticipated synergies to be gained from the integration into our existing United Kingdom business. This goodwill is not deductible for tax purposes and relates to the Europe segment. The Hickman acquisition complements strategies we are pursuing with our existing United Kingdom business. On July 23, 2015, we completed the acquisition of Performance Doorset Solutions Limited ("PDS"), headquartered in Lancashire, England, for total consideration of $15.7 million , net of cash acquired. We acquired 100% of the equity interests in PDS through the purchase of all of the outstanding shares of common stock at the acquisition date. PDS is a leading supplier of custom doors and millwork in the United Kingdom that specializes in non-standard product specifications, manufacturing both wood and composite solutions. The excess purchase price over the fair value of net assets acquired of $3.1 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 segment. The PDS acquisition complements our existing United Kingdom business. The aggregate consideration paid for acquisitions during 2015 was as follows: (In thousands) USA Wood Door Hickman PDS Total 2015 Acquisitions Accounts Receivable $ 2,235 $ 20,870 $ 3,000 $ 26,105 Inventory 1,677 11,090 1,438 14,205 Property, plant and equipment 2,600 14,057 5,684 22,341 Goodwill 8,921 18,215 3,145 30,281 Intangible assets — 55,634 6,437 62,071 Accounts payable and accrued expenses (1,654 ) (23,972 ) (2,218 ) (27,844 ) Other assets and liabilities, net (81 ) (7,918 ) (1,762 ) (9,761 ) Cash consideration, net of cash acquired $ 13,698 $ 87,976 $ 15,724 $ 117,398 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 the 2015 acquisitions consist of customer relationships and are being amortized over the weighted average amortization period of 9.6 years and 9.7 years for the Hickman and PDS acquisitions, respectively. The intangible assets are not expected to have any residual value. The gross contractual value of acquired trade receivables was $1.7 million , $21.0 million and $2.6 million for the USA Wood Door, Hickman and PDS acquisitions, respectively. The following schedule represents the amount of net sales and net income (loss) attributable to Masonite from the 2015 acquisitions which have been included in the condensed consolidated statements of comprehensive income (loss) for the periods indicated subsequent to the acquisition date. Three Months Ended April 3, 2016 (In thousands) USA Wood Door National Hickman PDS Total 2015 Acquisitions Net sales $ 4,495 $ 25,755 $ 4,551 $ 34,801 Net income (loss) attributable to Masonite 498 2,139 150 2,787 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. The pro forma results have been calculated after adjusting the results of the acquired entities 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 the respective acquisitions, 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 acquisitions; 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 29, 2015 (In thousands, except per share amounts) Masonite 2015 Acquisitions Historical Sales to 2015 Acquisitions Pro Forma Net sales $ 434,465 $ 36,613 $ (4,238 ) $ 466,840 Net income (loss) attributable to Masonite (31,052 ) 1,766 (692 ) (29,978 ) Basic earnings (loss) per common share $ (1.03 ) $ (1.00 ) Diluted earnings (loss) per common share $ (1.03 ) $ (1.00 ) Disposition and Deconsolidated Entity Africa On December 22, 2015, following a comprehensive assessment of Masonite (Africa) Limited (“MAL”), our South African subsidiary, the MAL Board of Directors approved a plan to enter into Business Rescue proceedings, the South African equivalent of bankruptcy proceedings in the United States, similar to a Chapter 11 reorganization. As a result of this plan, a Business Rescue Practitioner was appointed to manage the affairs of the business and we no longer maintain operational control over MAL. For this reason, we deconsolidated MAL effective December 22, 2015. Subsequent to deconsolidation, we use the cost method to account for our equity investment in MAL, which has been reflected as $10.0 million in our condensed consolidated balance sheets as of April 3, 2016 , and January 3, 2016 , based on the estimated fair value of our portion of MAL’s net assets on the date of deconsolidation. The fair value of the investment in MAL was determined using a discounted future cash flows analysis based upon management's view of the most likely outcomes of the Business Rescue proceedings. The resulting valuation is net of future disposal costs and third party fees, and is subject to the volatility of the South African Rand. This valuation was performed on a non-recurring basis and is categorized as having Level 3 valuation inputs as established by the FASB's Fair Value Framework. The Level 3 unobservable inputs include an estimate of future cash flows for the business. France On July 31, 2015, we completed the sale of all of the capital stock of Premdor S.A.S., Masonite’s door business in France, to an investment fund managed by Perceva S.A.S., a Paris-based independent investment firm (the "Buyer"). Pursuant to a stock purchase agreement dated July 16, 2015, the Buyer acquired all of Masonite’s door manufacturing and distribution business in France for nominal consideration. Premdor S.A.S. generated $2.1 million of losses from continuing operations before income tax expense (benefit) during the three months ended March 29, 2015 . |
Goodwill and Intangbile Assets
Goodwill and Intangbile Assets | 3 Months Ended |
Apr. 03, 2016 | |
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 American Residential Europe Architectural Total December 28, 2014 $ 2,891 $ 19,008 $ 77,300 $ 99,199 Goodwill from 2015 acquisitions — 21,360 8,921 30,281 Foreign exchange fluctuations (56 ) (1,062 ) (192 ) (1,310 ) January 3, 2016 2,835 39,306 86,029 128,170 Foreign exchange fluctuations 16 (1,545 ) 148 (1,381 ) April 3, 2016 $ 2,851 $ 37,761 $ 86,177 $ 126,789 The cost and accumulated amortization values of our intangible assets were as follows as of the dates indicated: April 3, 2016 (In thousands) Cost Accumulated Amortization Translation Adjustment Net Book Value Definite life intangible assets: Customer relationships $ 155,927 $ (52,406 ) $ (8,027 ) $ 95,494 Patents 29,967 (17,740 ) (774 ) 11,453 Software 30,090 (24,075 ) (179 ) 5,836 Other 12,280 (8,230 ) (1,654 ) 2,396 228,264 (102,451 ) (10,634 ) 115,179 Indefinite life intangible assets: Trademarks and tradenames 111,538 — (8,661 ) 102,877 Total intangible assets $ 339,802 $ (102,451 ) $ (19,295 ) $ 218,056 January 3, 2016 (In thousands) Cost Accumulated Amortization Translation Adjustment Net Book Value Definite life intangible assets: Customer relationships $ 155,927 $ (48,025 ) $ (5,648 ) $ 102,254 Patents 29,643 (17,168 ) (885 ) 11,590 Software 29,830 (23,187 ) (208 ) 6,435 Other 12,280 (7,853 ) (1,567 ) 2,860 227,680 (96,233 ) (8,308 ) 123,139 Indefinite life intangible assets: Trademarks and tradenames 111,538 — (8,745 ) 102,793 Total intangible assets $ 339,218 $ (96,233 ) $ (17,053 ) $ 225,932 Amortization of intangible assets was $6.2 million and $4.7 million for the three months ended April 3, 2016 , and March 29, 2015 , 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 April 3, 2016 , is as follows: (In thousands) Fiscal year: 2016 (remaining nine months) $ 17,819 2017 21,312 2018 16,243 2019 15,091 2020 12,716 |
Accounts Receivable
Accounts Receivable | 3 Months Ended |
Apr. 03, 2016 | |
Receivables [Abstract] | |
Accounts Receivable | Accounts Receivable Our customers consist mainly of wholesale distributors, dealers, homebuilders and retail home centers. Our ten largest customers accounted for 55.6% and 54.1% of total accounts receivable as of April 3, 2016 , and January 3, 2016 , respectively. Our two largest customers, The Home Depot, Inc. and Lowe's Companies, Inc., individually accounted for more than 10% of the consolidated gross accounts receivable balance as of April 3, 2016 , and January 3, 2016 . No other individual customers accounted for greater than 10% of consolidated gross accounts receivable balance at either April 3, 2016 , or January 3, 2016 . The allowance for doubtful accounts balance was $2.4 million and $3.1 million as of April 3, 2016 , and January 3, 2016 , respectively. 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 in selling, general and administration expense within the condensed consolidated statements of comprehensive income (loss). |
Inventories
Inventories | 3 Months Ended |
Apr. 03, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories The amounts of inventory on hand were as follows as of the dates indicated: (In thousands) April 3, January 3, Raw materials $ 150,775 $ 145,856 Finished goods 74,999 69,045 Provision for obsolete or aged inventory (6,523 ) (6,508 ) Inventories, net $ 219,251 $ 208,393 |
Property, Plant and Equipment
Property, Plant and Equipment | 3 Months Ended |
Apr. 03, 2016 | |
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) April 3, January 3, Land $ 25,496 $ 25,316 Buildings 160,670 155,709 Machinery and equipment 563,625 551,264 Property, plant and equipment, gross 749,791 732,289 Accumulated depreciation (210,616 ) (198,055 ) Property, plant and equipment, net $ 539,175 $ 534,234 Total depreciation expense was $14.6 million and $15.3 million in the three months ended April 3, 2016 , and March 29, 2015 , respectively. Depreciation expense is included primarily within cost of goods sold in the condensed consolidated statements of comprehensive income (loss). |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Apr. 03, 2016 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt (In thousands) April 3, January 3, 5.625% senior unsecured notes due 2023 $ 475,000 $ 475,000 Debt issuance costs for 2023 Notes (6,022 ) (6,232 ) Capital lease obligations and other long-term debt 54 88 Total long-term debt $ 469,032 $ 468,856 Interest expense related to our consolidated indebtedness under senior unsecured notes was $7.0 million and $11.2 million for the three months ended April 3, 2016 , and March 29, 2015 , 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 $467.9 million after deducting $7.1 million of debt issuance costs. The debt issuance costs were capitalized as a reduction to the carrying value of debt and are being accreted 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 $500.0 million aggregate principal prior senior unsecured notes due 2021 (the "2021 Notes") and to pay related premiums, fees and expenses. 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 debt issuance costs of $7.8 million relating to the 2021 Notes were written off in conjunction with their extinguishment. 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. 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, as described in the indenture, 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 April 3, 2016 , and January 3, 2016 , we were in compliance with all covenants under the indenture governing the 2023 Notes. ABL Facility On April 9, 2015, we and certain of our subsidiaries amended and restated our asset-based revolving credit facility (the "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 borrowing base is calculated based on a percentage of the value of selected U.S. and Canadian accounts receivable and 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 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. In addition to paying interest on any outstanding principal under the ABL Facility 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 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) pay dividends on our common shares and make other restricted payments, (ii) make investments and acquisitions, (iii) engage in transactions with our affiliates, (iv) sell assets, (v) merge and (vi) create liens. The Amended and Restated Credit Agreement amended 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 April 3, 2016 , and January 3, 2016 , we were in compliance with all covenants under the credit agreement governing the ABL Facility. As of April 3, 2016 , and January 3, 2016 , there were no amounts outstanding under the ABL Facility. |
Share Based Compensation Plans
Share Based Compensation Plans | 3 Months Ended |
Apr. 03, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share Based Compensation Plans | Share Based Compensation Plans Share-based compensation expense was $3.7 million and $2.4 million for the three months ended April 3, 2016 , and March 29, 2015 , respectively. As of April 3, 2016 , the total remaining unrecognized compensation expense related to share based compensation amounted to $21.6 million , which will be amortized over the weighted average remaining requisite service period of 2.5 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, which was amended on June 21, 2013, by our Board of Directors and further amended on May 12, 2015, by approval of our shareholders (as amended and restated, 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 ten 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 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 certain material amendments are subject to shareholder approval. The aggregate number of common shares that can be issued with respect to equity awards under the 2012 Plan cannot exceed 2,000,000 shares plus the number of shares subject to existing grants under the 2009 Plan that may expire or be forfeited or cancelled. As of April 3, 2016 , there were 1,547,967 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 April 3, 2016 , the liability and asset relating to deferred compensation had a fair value of $2.8 million and $2.7 million , respectively. 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 April 3, 2016 , 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 three 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 the three months ended March 29, 2015 . No SARs vested during the three months ended April 3, 2016 . Three months ended April 3, 2016 Stock Appreciation Rights Aggregate Intrinsic Value (in thousands) Weighted Average Exercise Price Average Remaining Contractual Life (Years) Outstanding, beginning of period 891,147 $ 36,681 $ 20.07 4.9 Granted 121,805 58.37 Exercised (24,443 ) 1,122 15.35 Cancelled (2,400 ) 32.68 Outstanding, end of period 986,109 $ 40,908 $ 24.89 5.4 Exercisable, end of period 679,384 $ 33,765 $ 16.67 4.0 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 5.0 The value of SARs granted in the three months ended April 3, 2016, as determined using the Black-Scholes Merton valuation model, was $2.0 million and is expected to be recognized over the average requisite service period of 2.0 years. Expected volatility is based upon the historical volatility of our public industry peers’ common shares amongst other considerations. The expected term is calculated using the simplified method, due to insufficient exercise activity during recent years as a basis from which to estimate future exercise patterns. The weighted average grant date assumptions used for the SARs granted were as follows for the periods indicated: 2016 Grants SAR value (model conclusion) $ 16.78 Risk-free rate 1.6 % Expected dividend yield 0.0 % Expected volatility 26.2 % Expected term (years) 6.0 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 three years and call for the underlying shares to be delivered no later than 30 days following the vesting date unless the participant is subject to a blackout period. In such case, the shares are to be delivered once the blackout restriction has been lifted. It is assumed that all time-based RSUs will vest. Three Months Ended April 3, 2016 March 29, 2015 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 526,930 $ 49.31 543,373 $ 34.56 Granted 172,251 57.51 177,862 61.24 Delivered (31,120 ) (18,852 ) Withheld to cover (1) (4,745 ) (2,303 ) Cancelled (3,440 ) (1,445 ) Outstanding, end of period 659,876 $ 50.94 698,635 $ 37.43 ____________ (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 April 3, 2016 , 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 April 3, 2016 , was $9.9 million and is being recognized over the weighted average requisite service period of 2.3 years. During the three months ended April 3, 2016 , there were 35,865 RSUs vested at a fair value of $2.1 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 will increase the amount of common shares outstanding and reduce additional paid-in capital. There were no 2014 Warrants outstanding during any period presented. Activity relating to the 2016 Warrants was as follows for the period presented: Three Months Ended April 3, 2016 March 29, 2015 Outstanding, beginning of period 2,497,971 2,500,001 Exercised (1,076,387 ) — Outstanding, end of period 1,421,584 2,500,001 Common shares issued 108,274 — |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Apr. 03, 2016 | |
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: 2016 (remaining nine months) $ 14,638 2017 18,180 2018 17,041 2019 15,658 2020 13,354 Thereafter 77,363 Total future minimum lease payments $ 156,234 Total rent expense, including non-cancelable operating leases and month-to-month leases, was $6.4 million and $5.7 million for the three months ended April 3, 2016 , and March 29, 2015 , 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 |
Apr. 03, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Costs | Restructuring Costs Restructuring costs were not material in the three months ended April 3, 2016 . The following table summarizes the restructuring charges recorded for the periods indicated: Three Months Ended March 29, 2015 (In thousands) North American Residential Europe Corporate & Other Total 2015 Plan $ — $ 1,687 $ 624 $ 2,311 2013 Plan 4 41 — 45 Total Restructuring Costs $ 4 $ 1,728 $ 624 $ 2,356 Cumulative Amount Incurred Through April 3, 2016 (In thousands) North American Residential Europe Corporate & Other Total 2015 Plan $ — $ 2,337 $ 3,166 $ 5,503 2014 Plan — — 9,503 9,503 2013 Plan 3,025 2,733 2,157 7,915 2012 and Prior Plans 2,378 12,695 3,609 18,682 Total Restructuring Costs $ 5,403 $ 17,765 $ 18,435 $ 41,603 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 and the rationalization of certain of our European facilities, including 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 Africa and Europe outside of the United Kingdom. Costs associated with the 2015 Plan include severance and closure charges and are substantially completed. As of April 3, 2016 , we do not expect to incur any material 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 April 3, 2016, 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 April 3, 2016 , 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 April 3, 2016 , 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) January 3, Severance Closure Costs Cash Payments April 3, 2015 Plan $ 774 $ (8 ) $ 27 $ 276 $ 517 2014 Plan 442 — — 13 429 2013 Plan 316 — — 192 124 2012 and Prior Plans 858 — — 187 671 Total $ 2,390 $ (8 ) $ 27 $ 668 $ 1,741 (In thousands) December 28, Severance Closure Costs Cash Payments March 29, 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 |
Income Taxes
Income Taxes | 3 Months Ended |
Apr. 03, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income tax expense (benefit) for income taxes consists of the following: Three Months Ended (In thousands) April 3, 2016 March 29, 2015 Current $ 1,842 $ 1,499 Deferred 4,368 1,765 Income tax expense (benefit) $ 6,210 $ 3,264 The effective tax rate differs from the Canadian statutory rate of 26.6% primarily due to changes in our valuation allowances, tax exempt income, and mix of earnings in foreign jurisdictions which are subject to tax rates that differ from the Canadian statutory rate. 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 $44.1 million and $40.9 million was required for our deferred income tax assets as of April 3, 2016 , and January 3, 2016 , 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, India, Mexico and Luxembourg. We expect to maintain valuation allowances on deferred tax assets arising in these jurisdictions until a sustained level of income is reached. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 3 Months Ended |
Apr. 03, 2016 | |
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) April 3, 2016 March 29, 2015 Transactions involving cash: Interest paid $ 13,487 $ 19,906 Interest received 70 167 Income taxes paid 2,737 1,507 Income tax refunds 62 9 Non-cash transactions: Property, plant and equipment additions in accounts payable 4,118 2,264 |
Segment Information
Segment Information | 3 Months Ended |
Apr. 03, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information During the first quarter of 2016, we changed our reportable segments to align with changes in how we manage our business, review operating performance and allocate resources as a result of the deconsolidation of Africa and other internal reporting changes. All prior period information was recast to reflect this change. Our reportable segments are organized and managed principally by end market: North American Residential, Europe and Architectural. The North American Residential reportable segment is the aggregation of the Wholesale and Retail operating segments. The Europe reportable segment is the aggregation of the United Kingdom, Central Eastern Europe and France (prior to disposal) operating segments. The Architectural reportable segment consists solely of the Architectural operating segment. The Corporate & Other category includes unallocated corporate costs and the results of immaterial operating segments which were not aggregated into any reportable segment, including the historical results of our Africa operating segment. Operating segments are aggregated into reportable segments only if they exhibit similar economic characteristics. In addition to similar economic characteristics we also consider the following factors in determining the reportable segments: the nature of business activities, the management structure directly accountable to our chief operating decision maker for operating and administrative activities, availability of discrete financial information and information presented to the Board of Directors and investors. 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 reportable 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. Adjusted EBITDA should not be considered as an alternative to either net income or operating cash flows determined in accordance with GAAP. Beginning with the third quarter of 2015, we revised our calculation of Adjusted EBITDA to separately exclude loss (gain) on disposal of subsidiaries. The revision to this definition had no impact on our reported Adjusted EBITDA for the three months ended March 29, 2015. 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; • loss (gain) on disposal of subsidiaries; • interest expense (income), net; • loss on 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. Adjusted EBITDA is used to evaluate and compare the 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 segments is as follows for the periods indicated: (In thousands) Three Months Ended April 3, 2016 (In thousands) North American Residential Europe Architectural Corporate & Other Total Net sales $ 330,616 $ 80,607 $ 76,309 $ 6,473 $ 494,005 Intersegment sales (1,887 ) (16 ) (2,797 ) — (4,700 ) Net sales to external customers $ 328,729 $ 80,591 $ 73,512 $ 6,473 $ 489,305 Adjusted EBITDA $ 51,375 $ 10,118 $ 4,431 $ (7,683 ) $ 58,241 (In thousands) Three Months Ended March 29, 2015 (In thousands) North American Residential Europe Architectural Corporate & Other Total Net sales $ 274,641 $ 75,103 $ 69,390 $ 19,248 $ 438,382 Intersegment sales (1,373 ) (78 ) (2,466 ) — (3,917 ) Net sales to external customers $ 273,268 $ 75,025 $ 66,924 $ 19,248 $ 434,465 Adjusted EBITDA $ 29,347 $ 6,569 $ 4,030 $ (2,158 ) $ 37,788 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) April 3, 2016 March 29, 2015 Adjusted EBITDA $ 58,241 $ 37,788 Less (plus): Depreciation 14,570 15,306 Amortization 6,464 5,011 Share based compensation expense 3,728 2,379 Loss (gain) on disposal of property, plant and equipment 132 (56 ) Restructuring costs 19 2,356 Interest expense (income), net 7,232 11,753 Loss on extinguishment of debt — 28,046 Other expense (income), net 786 (1,184 ) Income tax expense (benefit) 6,210 3,264 Loss (income) from discontinued operations, net of tax 188 229 Net income (loss) attributable to non-controlling interest 1,084 1,736 Net income (loss) attributable to Masonite $ 17,828 $ (31,052 ) |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Apr. 03, 2016 | |
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 2023 Notes as of April 3, 2016 and January 3, 2016 , was $490.4 million and $484.3 million , respectively, compared to a carrying value of $469.0 million and $468.8 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 |
Apr. 03, 2016 | |
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. (In thousands, except share and per share information) Three Months Ended April 3, 2016 March 29, 2015 Net income (loss) attributable to Masonite $ 17,828 $ (31,052 ) Income (loss) from discontinued operations, net of tax (188 ) (229 ) Income (loss) from continuing operations attributable to Masonite $ 18,016 $ (30,823 ) Shares used in computing basic earnings per share 30,494,976 30,056,085 Effect of dilutive securities: Incremental shares issuable under share compensation plans and warrants 876,980 — Shares used in computing diluted earnings per share 31,371,956 30,056,085 Basic earnings (loss) per common share attributable to Masonite: Continuing operations attributable to Masonite $ 0.59 $ (1.02 ) Discontinued operations attributable to Masonite, net of tax (0.01 ) (0.01 ) Total Basic earnings per common share attributable to Masonite $ 0.58 $ (1.03 ) Diluted earnings (loss) per common share attributable to Masonite: Continuing operations attributable to Masonite $ 0.57 $ (1.02 ) Discontinued operations attributable to Masonite, net of tax — (0.01 ) Total Diluted earnings per common share attributable to Masonite $ 0.57 $ (1.03 ) Incremental shares issuable from anti-dilutive instruments excluded from diluted earnings per common share: Warrants — 2,500,001 Stock appreciation rights — 489,427 Restricted stock units — 472,556 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 , 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 in that period. |
Other Comprehensive Income and
Other Comprehensive Income and Accumulated Other Comprehensive Income | 3 Months Ended |
Apr. 03, 2016 | |
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) April 3, 2016 March 29, 2015 Accumulated foreign exchange gains (losses), beginning of period $ (90,111 ) $ (57,473 ) Foreign exchange gain (loss) 3,872 (35,140 ) Less: foreign exchange gain (loss) attributable to non-controlling interest 487 (685 ) Accumulated foreign exchange gains (losses), end of period (86,726 ) (91,928 ) Accumulated pension and other post-retirement adjustments, beginning of period (17,837 ) (18,786 ) Amortization of actuarial net losses 242 220 Income tax benefit (expense) on amortization of actuarial net losses (96 ) (87 ) Accumulated pension and other post-retirement adjustments (17,691 ) (18,653 ) Accumulated other comprehensive income (loss) $ (104,417 ) $ (110,581 ) Other comprehensive income (loss), net of tax: $ 4,018 $ (35,007 ) Less: other comprehensive income (loss) attributable to non-controlling interest 487 (685 ) Other comprehensive income (loss) attributable to Masonite $ 3,531 $ (34,322 ) 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 |
Apr. 03, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entity | Variable Interest Entity As of April 3, 2016 , and January 3, 2016 , 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 operating principles with the VIE. As primary beneficiary via the operating principles, 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) April 3, January 3, Current assets $ 11,386 $ 9,987 Property, plant and equipment, net 15,108 15,638 Long-term deferred income taxes 10,073 9,121 Other assets, net 2,268 2,270 Current liabilities (3,584 ) (5,133 ) Other long-term liabilities (3,249 ) (2,944 ) Non-controlling interest (5,227 ) (4,981 ) Net assets of the VIE consolidated by Masonite $ 26,775 $ 23,958 Current assets include $5.2 million and $2.1 million of cash and cash equivalents as of April 3, 2016 , and January 3, 2016 , 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. Furthermore, 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 Event
Subsequent Event | 3 Months Ended |
Apr. 03, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event South Africa On May 5, 2016, the business rescue practitioner that was appointed to oversee the affairs of MAL proposed a business rescue plan that would result in the sale of the business. The transaction that has been proposed as part of the plan is expected to be completed in the third quarter of 2016 and is subject to various customary closing conditions, including creditor and shareholder approval of the plan, competition commission clearance, and other regulatory approvals. |
Business Overview and Signifi25
Business Overview and Significant Accounting Policies (Policies) | 3 Months Ended |
Apr. 03, 2016 | |
Accounting Policies [Abstract] | |
Adoption of Recent Accounting Pronouncements | Adoption of Recent Accounting Pronouncements In September 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") 2015-16, "Simplifying the Accounting for Measurement-Period Adjustments," which amends Accounting Standards Codification ("ASC") 805, "Business Combinations." This ASU eliminates the requirement to retrospectively account for measurement-period adjustments and instead recognize such adjustments in the reporting period in which the adjustments are determined. This ASU is effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years; early adoption is permitted and prospective application is required. The adoption of this standard did not have a material impact on the presentation of our financial statements. 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 fiscal years beginning after December 15, 2015, and interim periods within those fiscal years; early adoption is permitted and prospective application is required. The adoption of this standard did not have a material impact on the presentation of 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 fiscal years beginning after December 15, 2015, and interim periods within those fiscal years; early adoption is permitted and either full retrospective or modified retrospective application is required at the entity's option. 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 March 2016, the FASB issued ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting”, which amends ASC 718 “Compensation - Stock Compensation”. This ASU simplifies several aspects of the accounting for employee share-based award transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. Under the ASU, an entity recognizes all excess tax benefits and tax deficiencies resulting from the exercise or vesting of a share-based award to an employee. It also allows an entity to elect, as an accounting policy, either to continue to estimate forfeitures of share-based awards (as currently required) or to account for forfeitures when they occur. Additionally, the ASU modifies the current exception to liability classification of an award when an employer uses a net-settlement feature to withhold shares to meet the employer’s minimum statutory tax withholding requirement. This ASU is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years; early adoption is permitted and varying types of application are required for the different aspects of the standard. We are in the process of evaluating this guidance to determine the impact it will have on our financial statements. In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)", which will replace the existing guidance in ASC 840, "Leases." The updated standard aims to increase transparency and comparability among organizations by requiring lessees to recognize lease assets and lease liabilities on the balance sheet and requiring disclosure of key information about leasing arrangements. This ASU is effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods; early adoption is permitted and modified retrospective application is required. 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 |
Apr. 03, 2016 | |
Business Combinations [Abstract] | |
Aggregate consideration paid for acquisitions | The aggregate consideration paid for acquisitions during 2015 was as follows: (In thousands) USA Wood Door Hickman PDS Total 2015 Acquisitions Accounts Receivable $ 2,235 $ 20,870 $ 3,000 $ 26,105 Inventory 1,677 11,090 1,438 14,205 Property, plant and equipment 2,600 14,057 5,684 22,341 Goodwill 8,921 18,215 3,145 30,281 Intangible assets — 55,634 6,437 62,071 Accounts payable and accrued expenses (1,654 ) (23,972 ) (2,218 ) (27,844 ) Other assets and liabilities, net (81 ) (7,918 ) (1,762 ) (9,761 ) Cash consideration, net of cash acquired $ 13,698 $ 87,976 $ 15,724 $ 117,398 |
Pro forma information of acquisitions | Three Months Ended March 29, 2015 (In thousands, except per share amounts) Masonite 2015 Acquisitions Historical Sales to 2015 Acquisitions Pro Forma Net sales $ 434,465 $ 36,613 $ (4,238 ) $ 466,840 Net income (loss) attributable to Masonite (31,052 ) 1,766 (692 ) (29,978 ) Basic earnings (loss) per common share $ (1.03 ) $ (1.00 ) Diluted earnings (loss) per common share $ (1.03 ) $ (1.00 ) The following schedule represents the amount of net sales and net income (loss) attributable to Masonite from the 2015 acquisitions which have been included in the condensed consolidated statements of comprehensive income (loss) for the periods indicated subsequent to the acquisition date. Three Months Ended April 3, 2016 (In thousands) USA Wood Door National Hickman PDS Total 2015 Acquisitions Net sales $ 4,495 $ 25,755 $ 4,551 $ 34,801 Net income (loss) attributable to Masonite 498 2,139 150 2,787 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Apr. 03, 2016 | |
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 American Residential Europe Architectural Total December 28, 2014 $ 2,891 $ 19,008 $ 77,300 $ 99,199 Goodwill from 2015 acquisitions — 21,360 8,921 30,281 Foreign exchange fluctuations (56 ) (1,062 ) (192 ) (1,310 ) January 3, 2016 2,835 39,306 86,029 128,170 Foreign exchange fluctuations 16 (1,545 ) 148 (1,381 ) April 3, 2016 $ 2,851 $ 37,761 $ 86,177 $ 126,789 |
Cost and accumulated amortized values of intangible assets | The cost and accumulated amortization values of our intangible assets were as follows as of the dates indicated: April 3, 2016 (In thousands) Cost Accumulated Amortization Translation Adjustment Net Book Value Definite life intangible assets: Customer relationships $ 155,927 $ (52,406 ) $ (8,027 ) $ 95,494 Patents 29,967 (17,740 ) (774 ) 11,453 Software 30,090 (24,075 ) (179 ) 5,836 Other 12,280 (8,230 ) (1,654 ) 2,396 228,264 (102,451 ) (10,634 ) 115,179 Indefinite life intangible assets: Trademarks and tradenames 111,538 — (8,661 ) 102,877 Total intangible assets $ 339,802 $ (102,451 ) $ (19,295 ) $ 218,056 January 3, 2016 (In thousands) Cost Accumulated Amortization Translation Adjustment Net Book Value Definite life intangible assets: Customer relationships $ 155,927 $ (48,025 ) $ (5,648 ) $ 102,254 Patents 29,643 (17,168 ) (885 ) 11,590 Software 29,830 (23,187 ) (208 ) 6,435 Other 12,280 (7,853 ) (1,567 ) 2,860 227,680 (96,233 ) (8,308 ) 123,139 Indefinite life intangible assets: Trademarks and tradenames 111,538 — (8,745 ) 102,793 Total intangible assets $ 339,218 $ (96,233 ) $ (17,053 ) $ 225,932 |
Estimated future amortization of intangible assets with definite lives | The estimated future amortization of intangible assets with definite lives as of April 3, 2016 , is as follows: (In thousands) Fiscal year: 2016 (remaining nine months) $ 17,819 2017 21,312 2018 16,243 2019 15,091 2020 12,716 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Apr. 03, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | The amounts of inventory on hand were as follows as of the dates indicated: (In thousands) April 3, January 3, Raw materials $ 150,775 $ 145,856 Finished goods 74,999 69,045 Provision for obsolete or aged inventory (6,523 ) (6,508 ) Inventories, net $ 219,251 $ 208,393 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 3 Months Ended |
Apr. 03, 2016 | |
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) April 3, January 3, Land $ 25,496 $ 25,316 Buildings 160,670 155,709 Machinery and equipment 563,625 551,264 Property, plant and equipment, gross 749,791 732,289 Accumulated depreciation (210,616 ) (198,055 ) Property, plant and equipment, net $ 539,175 $ 534,234 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Apr. 03, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | (In thousands) April 3, January 3, 5.625% senior unsecured notes due 2023 $ 475,000 $ 475,000 Debt issuance costs for 2023 Notes (6,022 ) (6,232 ) Capital lease obligations and other long-term debt 54 88 Total long-term debt $ 469,032 $ 468,856 |
Share Based Compensation Plans
Share Based Compensation Plans (Tables) | 3 Months Ended |
Apr. 03, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock appreciation rights award activity | Three months ended April 3, 2016 Stock Appreciation Rights Aggregate Intrinsic Value (in thousands) Weighted Average Exercise Price Average Remaining Contractual Life (Years) Outstanding, beginning of period 891,147 $ 36,681 $ 20.07 4.9 Granted 121,805 58.37 Exercised (24,443 ) 1,122 15.35 Cancelled (2,400 ) 32.68 Outstanding, end of period 986,109 $ 40,908 $ 24.89 5.4 Exercisable, end of period 679,384 $ 33,765 $ 16.67 4.0 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 5.0 |
Schedule of Share-based Compensation, Stock Appreciation Rights, Valuation Assumptions | The weighted average grant date assumptions used for the SARs granted were as follows for the periods indicated: 2016 Grants SAR value (model conclusion) $ 16.78 Risk-free rate 1.6 % Expected dividend yield 0.0 % Expected volatility 26.2 % Expected term (years) 6.0 |
Restricted stock units award activity | Three Months Ended April 3, 2016 March 29, 2015 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 526,930 $ 49.31 543,373 $ 34.56 Granted 172,251 57.51 177,862 61.24 Delivered (31,120 ) (18,852 ) Withheld to cover (1) (4,745 ) (2,303 ) Cancelled (3,440 ) (1,445 ) Outstanding, end of period 659,876 $ 50.94 698,635 $ 37.43 ____________ (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 | Activity relating to the 2016 Warrants was as follows for the period presented: Three Months Ended April 3, 2016 March 29, 2015 Outstanding, beginning of period 2,497,971 2,500,001 Exercised (1,076,387 ) — Outstanding, end of period 1,421,584 2,500,001 Common shares issued 108,274 — |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Apr. 03, 2016 | |
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: 2016 (remaining nine months) $ 14,638 2017 18,180 2018 17,041 2019 15,658 2020 13,354 Thereafter 77,363 Total future minimum lease payments $ 156,234 |
Restructuring Costs (Tables)
Restructuring Costs (Tables) | 3 Months Ended |
Apr. 03, 2016 | |
Restructuring and Related Activities [Abstract] | |
Total restructuring costs by plan | Three Months Ended March 29, 2015 (In thousands) North American Residential Europe Corporate & Other Total 2015 Plan $ — $ 1,687 $ 624 $ 2,311 2013 Plan 4 41 — 45 Total Restructuring Costs $ 4 $ 1,728 $ 624 $ 2,356 Cumulative Amount Incurred Through April 3, 2016 (In thousands) North American Residential Europe Corporate & Other Total 2015 Plan $ — $ 2,337 $ 3,166 $ 5,503 2014 Plan — — 9,503 9,503 2013 Plan 3,025 2,733 2,157 7,915 2012 and Prior Plans 2,378 12,695 3,609 18,682 Total Restructuring Costs $ 5,403 $ 17,765 $ 18,435 $ 41,603 |
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) January 3, Severance Closure Costs Cash Payments April 3, 2015 Plan $ 774 $ (8 ) $ 27 $ 276 $ 517 2014 Plan 442 — — 13 429 2013 Plan 316 — — 192 124 2012 and Prior Plans 858 — — 187 671 Total $ 2,390 $ (8 ) $ 27 $ 668 $ 1,741 (In thousands) December 28, Severance Closure Costs Cash Payments March 29, 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 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Apr. 03, 2016 | |
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) April 3, 2016 March 29, 2015 Current $ 1,842 $ 1,499 Deferred 4,368 1,765 Income tax expense (benefit) $ 6,210 $ 3,264 |
Supplemental Cash Flow Inform35
Supplemental Cash Flow Information (Tables) | 3 Months Ended |
Apr. 03, 2016 | |
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) April 3, 2016 March 29, 2015 Transactions involving cash: Interest paid $ 13,487 $ 19,906 Interest received 70 167 Income taxes paid 2,737 1,507 Income tax refunds 62 9 Non-cash transactions: Property, plant and equipment additions in accounts payable 4,118 2,264 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Apr. 03, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Certain information with respect to segments is as follows for the periods indicated: (In thousands) Three Months Ended April 3, 2016 (In thousands) North American Residential Europe Architectural Corporate & Other Total Net sales $ 330,616 $ 80,607 $ 76,309 $ 6,473 $ 494,005 Intersegment sales (1,887 ) (16 ) (2,797 ) — (4,700 ) Net sales to external customers $ 328,729 $ 80,591 $ 73,512 $ 6,473 $ 489,305 Adjusted EBITDA $ 51,375 $ 10,118 $ 4,431 $ (7,683 ) $ 58,241 (In thousands) Three Months Ended March 29, 2015 (In thousands) North American Residential Europe Architectural Corporate & Other Total Net sales $ 274,641 $ 75,103 $ 69,390 $ 19,248 $ 438,382 Intersegment sales (1,373 ) (78 ) (2,466 ) — (3,917 ) Net sales to external customers $ 273,268 $ 75,025 $ 66,924 $ 19,248 $ 434,465 Adjusted EBITDA $ 29,347 $ 6,569 $ 4,030 $ (2,158 ) $ 37,788 |
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) April 3, 2016 March 29, 2015 Adjusted EBITDA $ 58,241 $ 37,788 Less (plus): Depreciation 14,570 15,306 Amortization 6,464 5,011 Share based compensation expense 3,728 2,379 Loss (gain) on disposal of property, plant and equipment 132 (56 ) Restructuring costs 19 2,356 Interest expense (income), net 7,232 11,753 Loss on extinguishment of debt — 28,046 Other expense (income), net 786 (1,184 ) Income tax expense (benefit) 6,210 3,264 Loss (income) from discontinued operations, net of tax 188 229 Net income (loss) attributable to non-controlling interest 1,084 1,736 Net income (loss) attributable to Masonite $ 17,828 $ (31,052 ) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Apr. 03, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | (In thousands, except share and per share information) Three Months Ended April 3, 2016 March 29, 2015 Net income (loss) attributable to Masonite $ 17,828 $ (31,052 ) Income (loss) from discontinued operations, net of tax (188 ) (229 ) Income (loss) from continuing operations attributable to Masonite $ 18,016 $ (30,823 ) Shares used in computing basic earnings per share 30,494,976 30,056,085 Effect of dilutive securities: Incremental shares issuable under share compensation plans and warrants 876,980 — Shares used in computing diluted earnings per share 31,371,956 30,056,085 Basic earnings (loss) per common share attributable to Masonite: Continuing operations attributable to Masonite $ 0.59 $ (1.02 ) Discontinued operations attributable to Masonite, net of tax (0.01 ) (0.01 ) Total Basic earnings per common share attributable to Masonite $ 0.58 $ (1.03 ) Diluted earnings (loss) per common share attributable to Masonite: Continuing operations attributable to Masonite $ 0.57 $ (1.02 ) Discontinued operations attributable to Masonite, net of tax — (0.01 ) Total Diluted earnings per common share attributable to Masonite $ 0.57 $ (1.03 ) Incremental shares issuable from anti-dilutive instruments excluded from diluted earnings per common share: Warrants — 2,500,001 Stock appreciation rights — 489,427 Restricted stock units — 472,556 |
Other Comprehensive Income an38
Other Comprehensive Income and Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Apr. 03, 2016 | |
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) April 3, 2016 March 29, 2015 Accumulated foreign exchange gains (losses), beginning of period $ (90,111 ) $ (57,473 ) Foreign exchange gain (loss) 3,872 (35,140 ) Less: foreign exchange gain (loss) attributable to non-controlling interest 487 (685 ) Accumulated foreign exchange gains (losses), end of period (86,726 ) (91,928 ) Accumulated pension and other post-retirement adjustments, beginning of period (17,837 ) (18,786 ) Amortization of actuarial net losses 242 220 Income tax benefit (expense) on amortization of actuarial net losses (96 ) (87 ) Accumulated pension and other post-retirement adjustments (17,691 ) (18,653 ) Accumulated other comprehensive income (loss) $ (104,417 ) $ (110,581 ) Other comprehensive income (loss), net of tax: $ 4,018 $ (35,007 ) Less: other comprehensive income (loss) attributable to non-controlling interest 487 (685 ) Other comprehensive income (loss) attributable to Masonite $ 3,531 $ (34,322 ) |
Variable Interest Entity (Table
Variable Interest Entity (Tables) | 3 Months Ended |
Apr. 03, 2016 | |
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) April 3, January 3, Current assets $ 11,386 $ 9,987 Property, plant and equipment, net 15,108 15,638 Long-term deferred income taxes 10,073 9,121 Other assets, net 2,268 2,270 Current liabilities (3,584 ) (5,133 ) Other long-term liabilities (3,249 ) (2,944 ) Non-controlling interest (5,227 ) (4,981 ) Net assets of the VIE consolidated by Masonite $ 26,775 $ 23,958 |
Business Overview and Signifi40
Business Overview and Significant Accounting Policies (Details) | Apr. 03, 2016Countryfacility |
Accounting Policies [Abstract] | |
Number of manufacturing locations | facility | 65 |
Number of countries | Country | 9 |
Acquisitions (Narrative) (Detai
Acquisitions (Narrative) (Details) - USD ($) $ in Thousands | Oct. 01, 2015 | Aug. 05, 2015 | Jul. 23, 2015 |
National Hickman | |||
Business Acquisition [Line Items] | |||
Cash consideration, net of cash acquired | $ 87,976 | ||
Acquired equity interests, percent | 100.00% | ||
Goodwill | $ 18,215 | ||
Gross contractual value of acquired trade receivables | $ 21,000 | ||
Performance Doorset Solutions | |||
Business Acquisition [Line Items] | |||
Cash consideration, net of cash acquired | $ 15,724 | ||
Acquired equity interests, percent | 100.00% | ||
Goodwill | $ 3,145 | ||
Gross contractual value of acquired trade receivables | $ 2,600 | ||
USA Wood Door | |||
Business Acquisition [Line Items] | |||
Cash consideration, net of cash acquired | $ 13,698 | ||
Acquired equity interests, percent | 100.00% | ||
Goodwill | $ 8,921 | ||
Gross contractual value of acquired trade receivables | $ 1,700 | ||
Customer Relationships | National Hickman | |||
Business Acquisition [Line Items] | |||
Amortization period for acquired customer relationships | 9 years 7 months 9 days | ||
Customer Relationships | Performance Doorset Solutions | |||
Business Acquisition [Line Items] | |||
Amortization period for acquired customer relationships | 9 years 8 months 16 days |
Acquisitions (Aggregate Conside
Acquisitions (Aggregate Consideration) (Details) - USD ($) $ in Thousands | Oct. 01, 2015 | Aug. 05, 2015 | Jul. 23, 2015 | Jan. 03, 2016 |
USA Wood Door | ||||
Business Acquisition [Line Items] | ||||
Accounts receivable | $ 2,235 | |||
Inventory | 1,677 | |||
Property, plant and equipment | 2,600 | |||
Goodwill | 8,921 | |||
Intangible assets | 0 | |||
Accounts payable and accrued expenses | (1,654) | |||
Other assets and liabilities, net | (81) | |||
Cash consideration, net of cash acquired | $ 13,698 | |||
National Hickman | ||||
Business Acquisition [Line Items] | ||||
Accounts receivable | $ 20,870 | |||
Inventory | 11,090 | |||
Property, plant and equipment | 14,057 | |||
Goodwill | 18,215 | |||
Intangible assets | 55,634 | |||
Accounts payable and accrued expenses | (23,972) | |||
Other assets and liabilities, net | (7,918) | |||
Cash consideration, net of cash acquired | $ 87,976 | |||
Performance Doorset Solutions | ||||
Business Acquisition [Line Items] | ||||
Accounts receivable | $ 3,000 | |||
Inventory | 1,438 | |||
Property, plant and equipment | 5,684 | |||
Goodwill | 3,145 | |||
Intangible assets | 6,437 | |||
Accounts payable and accrued expenses | (2,218) | |||
Other assets and liabilities, net | (1,762) | |||
Cash consideration, net of cash acquired | $ 15,724 | |||
Business Acquisitions 2015 | ||||
Business Acquisition [Line Items] | ||||
Accounts receivable | $ 26,105 | |||
Inventory | 14,205 | |||
Property, plant and equipment | 22,341 | |||
Goodwill | 30,281 | |||
Intangible assets | 62,071 | |||
Accounts payable and accrued expenses | (27,844) | |||
Other assets and liabilities, net | (9,761) | |||
Cash consideration, net of cash acquired | $ 117,398 |
Acquisitions (Revenues and Earn
Acquisitions (Revenues and Earnings) (Details) $ in Thousands | 3 Months Ended |
Apr. 03, 2016USD ($) | |
USA Wood Door | |
Business Acquisition [Line Items] | |
Net Sales | $ 4,495 |
Net income (loss) attributable to Masonite | 498 |
National Hickman | |
Business Acquisition [Line Items] | |
Net Sales | 25,755 |
Net income (loss) attributable to Masonite | 2,139 |
Performance Doorset Solutions | |
Business Acquisition [Line Items] | |
Net Sales | 4,551 |
Net income (loss) attributable to Masonite | 150 |
Business Acquisitions 2015 | |
Business Acquisition [Line Items] | |
Net Sales | 34,801 |
Net income (loss) attributable to Masonite | $ 2,787 |
Acquisitions (Pro Forma Informa
Acquisitions (Pro Forma Information) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Apr. 03, 2016 | Mar. 29, 2015 | |
Business Acquisition, Pro Forma Information [Line Items] | ||
Net sales | $ 489,305 | $ 434,465 |
Pro forma revenue | 466,840 | |
Net income (loss) attributable to Masonite | $ 17,828 | (31,052) |
Pro forma net income (loss) attributable to Masonite | (29,978) | |
Pro forma intercompany sales | (4,238) | |
Pro forma net income resulting from intercompany sales | $ (692) | |
Basic earnings per common share attributable to Masonite (in dollars per share) | $ 0.58 | $ (1.03) |
Pro forma earnings per share, basic (in dollars per share) | (1) | |
Diluted earnings per common share attributable to Masonite (in dollars per share) | $ 0.57 | (1.03) |
Pro forma earnings per share, diluted (in dollars per share) | $ (1) | |
Business Acquisitions 2015 | ||
Business Acquisition, Pro Forma Information [Line Items] | ||
Pro forma revenue | $ 36,613 | |
Pro forma net income (loss) attributable to Masonite | $ 1,766 |
Acquisitions and Disposition De
Acquisitions and Disposition Deconsolidated Entity (Narrative) (Details) - USD ($) $ in Millions | Apr. 03, 2016 | Jan. 03, 2016 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Equity investment in MAL | $ 10 | $ 10 |
Acquisitions and Disposition Di
Acquisitions and Disposition Disposition (Narrative) (Details) $ in Millions | 3 Months Ended |
Apr. 03, 2016USD ($) | |
Premdor, S.A.S. [Member] | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Losses from Premdor S.A.S. from continuing operations | $ (2.1) |
Goodwill and Intangible Asset47
Goodwill and Intangible Assets (Schedule of Goodwill) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Apr. 03, 2016 | Jan. 03, 2016 | |
Goodwill [Roll Forward] | ||
Goodwill, beginning | $ 128,170 | |
Goodwill, ending | 126,789 | $ 128,170 |
North American Residential | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning | 2,835 | 2,891 |
Goodwill from acquisitions | 0 | |
Foreign exchange fluctuations | 16 | (56) |
Goodwill, ending | 2,851 | 2,835 |
Europe | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning | 39,306 | 19,008 |
Goodwill from acquisitions | 21,360 | |
Foreign exchange fluctuations | (1,545) | (1,062) |
Goodwill, ending | 37,761 | 39,306 |
Architectural | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning | 86,029 | 77,300 |
Goodwill from acquisitions | 8,921 | |
Foreign exchange fluctuations | 148 | (192) |
Goodwill, ending | 86,177 | 86,029 |
Operating Segments | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning | 128,170 | 99,199 |
Goodwill from acquisitions | 30,281 | |
Foreign exchange fluctuations | (1,381) | (1,310) |
Goodwill, ending | $ 126,789 | $ 128,170 |
Goodwill and Intangible Asset48
Goodwill and Intangible Assets (Cost and Accumulated Amortized Values) (Details) - USD ($) $ in Thousands | Apr. 03, 2016 | Jan. 03, 2016 |
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | $ 228,264 | $ 227,680 |
Finite-lived intangible assets, accumulated amortization | (102,451) | (96,233) |
Finite-lived intangible assets, translation adjustment | (10,634) | (8,308) |
Finite-lived intangible assets, net | 115,179 | 123,139 |
Total intangible assets, gross | 339,802 | 339,218 |
Total intangible assets, translation adjustment | (19,295) | (17,053) |
Total intangible assets, net | 218,056 | 225,932 |
Customer Relationships | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 155,927 | 155,927 |
Finite-lived intangible assets, accumulated amortization | (52,406) | (48,025) |
Finite-lived intangible assets, translation adjustment | (8,027) | (5,648) |
Finite-lived intangible assets, net | 95,494 | 102,254 |
Patents | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 29,967 | 29,643 |
Finite-lived intangible assets, accumulated amortization | (17,740) | (17,168) |
Finite-lived intangible assets, translation adjustment | (774) | (885) |
Finite-lived intangible assets, net | 11,453 | 11,590 |
Software | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 30,090 | 29,830 |
Finite-lived intangible assets, accumulated amortization | (24,075) | (23,187) |
Finite-lived intangible assets, translation adjustment | (179) | (208) |
Finite-lived intangible assets, net | 5,836 | 6,435 |
Other | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 12,280 | 12,280 |
Finite-lived intangible assets, accumulated amortization | (8,230) | (7,853) |
Finite-lived intangible assets, translation adjustment | (1,654) | (1,567) |
Finite-lived intangible assets, net | 2,396 | 2,860 |
Trademarks and Trade Names | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, accumulated amortization | 0 | 0 |
Indefinite-lived intangible assets, gross | 111,538 | 111,538 |
Indefinite-lived intangible assets, net | 102,877 | 102,793 |
Total intangible assets, translation adjustment | $ (8,661) | $ (8,745) |
Goodwill and Intangible Asset49
Goodwill and Intangible Assets (Estimated Future Amortization of Intangible Assets) (Details) $ in Thousands | Apr. 03, 2016USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2016 (remaining nine months) | $ 17,819 |
2,017 | 21,312 |
2,018 | 16,243 |
2,019 | 15,091 |
2,020 | $ 12,716 |
Goodwill and Intangible Asset50
Goodwill and Intangible Assets (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 03, 2016 | Mar. 29, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization of intangible assets | $ 6.2 | $ 4.7 |
Accounts Receivable (Details)
Accounts Receivable (Details) $ in Millions | 3 Months Ended | 12 Months Ended |
Apr. 03, 2016USD ($)Customer | Jan. 03, 2016USD ($)Customer | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Allowance for doubtful accounts | $ | $ 2.4 | $ 3.1 |
Accounts Receivable | Customer Concentration Risk | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Concentration risk, customers | Customer | 10 | 10 |
Concentration risk, percent | 55.60% | 54.10% |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Apr. 03, 2016 | Jan. 03, 2016 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 150,775 | $ 145,856 |
Finished goods | 74,999 | 69,045 |
Provision for obsolete or aged inventory | (6,523) | (6,508) |
Inventories, net | $ 219,251 | $ 208,393 |
Property, Plant and Equipment53
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Apr. 03, 2016 | Jan. 03, 2016 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 749,791 | $ 732,289 |
Accumulated depreciation | (210,616) | (198,055) |
Property, plant and equipment, net | 539,175 | 534,234 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 25,496 | 25,316 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 160,670 | 155,709 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 563,625 | $ 551,264 |
Property, Plant and Equipment54
Property, Plant and Equipment (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 03, 2016 | Mar. 29, 2015 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation | $ 14,570 | $ 15,306 |
Long-Term Debt (Details)
Long-Term Debt (Details) - USD ($) $ in Thousands | Mar. 23, 2015 | Apr. 03, 2016 | Jan. 03, 2016 |
Debt Instrument [Line Items] | |||
Capital lease obligations and other long-term debt | $ 54 | $ 88 | |
Total long-term debt | 469,032 | 468,856 | |
Senior Notes | Senior Notes Due 2023 | |||
Debt Instrument [Line Items] | |||
Long-term debt | 475,000 | 475,000 | |
Debt issuance cost | $ (7,100) | $ (6,022) | $ (6,232) |
Long-Term Debt (Narrative) (Det
Long-Term Debt (Narrative) (Details) - USD ($) | Apr. 09, 2015 | Mar. 23, 2015 | Mar. 23, 2015 | Apr. 03, 2016 | Mar. 29, 2015 | Jan. 03, 2016 | May. 31, 2011 |
Debt Instrument [Line Items] | |||||||
Proceeds from issuance of long-term debt | $ 0 | $ 475,000,000 | |||||
Loss on extinguishment of debt | 0 | (28,046,000) | |||||
Senior Notes | Senior Notes Due 2021, Redemption | |||||||
Debt Instrument [Line Items] | |||||||
Debt issuance cost | $ 7,800,000 | ||||||
Redemption premium | 31,700,000 | ||||||
Unamortized premium on Senior Notes | (11,500,000) | $ (11,500,000) | |||||
Loss on extinguishment of debt | 28,000,000 | ||||||
Senior Notes | Senior Notes Due 2021 | |||||||
Debt Instrument [Line Items] | |||||||
Extinguishment of debt | 500,000,000 | ||||||
Senior Notes | Senior Notes Due 2023 | |||||||
Debt Instrument [Line Items] | |||||||
Interest expense | 7,000,000 | ||||||
Debt Instrument, Face Amount | 475,000,000 | $ 475,000,000 | |||||
Interest rate stated percentage | 5.625% | ||||||
Proceeds from issuance of long-term debt | $ 467,900,000 | ||||||
Debt issuance cost | $ 7,100,000 | $ 6,022,000 | 6,232,000 | ||||
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 | ||||||
Revolving Credit Facility | ABL Facility 2020 | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 150,000,000 | ||||||
Maximum pro forma secured leverage ratio | 4.5 | ||||||
Line of credit, amount outstanding | $ 0 | $ 0 | |||||
Revolving Credit Facility | ABL Facility 2016 | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 125,000,000 | ||||||
Minimum | Revolving Credit Facility | ABL Facility 2020 | |||||||
Debt Instrument [Line Items] | |||||||
Unutilized commitment fee percentage | 0.25% | ||||||
Minimum | Revolving Credit Facility | ABL Facility 2020 | Base Rate | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 0.25% | ||||||
Minimum | Revolving Credit Facility | ABL Facility 2020 | Eurodollar Rate | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 1.25% | ||||||
Maximum | Revolving Credit Facility | ABL Facility 2020 | Base Rate | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 0.75% | ||||||
Maximum | Revolving Credit Facility | ABL Facility 2020 | Eurodollar Rate | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 1.75% |
Share Based Compensation Plan57
Share Based Compensation Plans Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | Jul. 12, 2012 | Jan. 01, 2012 | Apr. 03, 2016 | Mar. 29, 2015 | Jan. 03, 2016 | Dec. 28, 2014 | Jun. 09, 2012 | Jun. 09, 2009 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based compensation | $ 3,728 | $ 2,379 | ||||||
Share based compensation unrecognized | $ 21,600 | |||||||
Weighted average remaining requisite service period | 2 years 6 months 3 days | |||||||
Deferred compensation liability | $ 2,800 | |||||||
Deferred compensation asset | $ 2,700 | |||||||
Dividends, per share, cash paid | $ 4.54 | |||||||
Warrants issued | 2,500,001 | 2,500,001 | 5,833,335 | |||||
Exercise price of warrants | $ 50.77 | $ 55.31 | ||||||
Expiration June 2014 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Warrants issued | 3,333,334 | |||||||
Expiration June 2016 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Warrants issued | 1,421,584 | 2,497,971 | 2,500,001 | |||||
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 | |||||||
2012 Plan | Common Stock | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Equity awards not to exceed | 2,000,000 | |||||||
Common stock available for future issuance | 1,547,967 | |||||||
Stock Appreciation Rights (SARs) | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Plan term | 10 years | |||||||
Award vesting period | 3 years | |||||||
Fair value of shares vested | $ 400 | |||||||
Average requisite service period | 2 years | |||||||
Award granted, fair value | $ 2,000 | |||||||
Restricted Stock Units (RSUs) | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Award vesting period | 3 years | |||||||
Fair value of shares vested | $ 2,100 | |||||||
Average requisite service period | 2 years 3 months 20 days | |||||||
Units vested | 35,865 | |||||||
Award granted, fair value | $ 9,900 | |||||||
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 Plan58
Share Based Compensation Plans (SARs) (Details) - Stock Appreciation Rights (SARs) - USD ($) $ / shares in Units, $ in Thousands | Apr. 03, 2016 | Jan. 03, 2016 | Mar. 29, 2015 | Dec. 28, 2014 | Apr. 03, 2016 | Mar. 29, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||||
Outstanding, beginning of period, shares | 891,147 | 1,231,468 | ||||
Granted, shares | 121,805 | |||||
Exercised, shares | (24,443) | (141,772) | ||||
Cancelled, shares | (2,400) | (800) | ||||
Outstanding, end of period, shares | 986,109 | 891,147 | 1,088,896 | 1,231,468 | 986,109 | 1,088,896 |
Exercisable, shares | 679,384 | 852,059 | 679,384 | 852,059 | ||
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 | $ 36,681 | $ 48,516 | ||||
Exercised, aggregate intrinsic value | 1,122 | 6,546 | ||||
Outstanding, end period, aggregate intrinsic value | $ 40,908 | $ 36,681 | $ 51,253 | $ 48,516 | 40,908 | 51,253 |
Exercisable, aggregate intrinsic value | $ 33,765 | $ 42,831 | $ 33,765 | $ 42,831 | ||
Outstanding, beginning of period, weighted average remaining contractual term | 5 years 4 months 26 days | 4 years 10 months 29 days | 5 years 8 months 16 days | 5 years 10 months 29 days | ||
Outstanding, end of period, weighted average remaining contractual term | 5 years 4 months 26 days | 4 years 10 months 29 days | 5 years 8 months 16 days | 5 years 10 months 29 days | ||
Exercisable, weighted average remaining contractual term | 4 years | 5 years | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||||||
Outstanding, beginning of period, weighted average exercise price | $ 20.07 | $ 19.59 | ||||
Granted, weighted average exercise price | 58.37 | |||||
Exercised, weighted average exercise price | 15.35 | 16.73 | ||||
Forfeited, weighted average exercise price | 32.68 | 32.68 | ||||
Outstanding, end of period, weighted average exercise price | $ 24.89 | $ 20.07 | $ 19.97 | $ 19.59 | 24.89 | 19.97 |
Exercisable, weighted average exercise price | $ 16.67 | $ 16.73 | $ 16.67 | $ 16.73 |
Share Based Compensation Plan59
Share Based Compensation Plans (Weighted Average Grant Date Assumptions) (Details) | 3 Months Ended |
Apr. 03, 2016$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Option value (model conclusion) | $ 16.78 |
Risk-free rate | 1.60% |
Expected dividend yield | 0.00% |
Expected volatility | 26.20% |
Expected term (in years) | 6 years |
Share Based Compensation Plan60
Share Based Compensation Plans (RSUs) (Details) - Restricted Stock Units (RSUs) - $ / shares | 3 Months Ended | ||
Apr. 03, 2016 | Mar. 29, 2015 | ||
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) | 526,930 | 543,373 | |
Granted (shares) | 172,251 | 177,862 | |
Delivered (shares) | (31,120) | (18,852) | |
Withheld to cover (shares) | (4,745) | [1] | (2,303) |
Cancelled (shares) | (3,440) | (1,445) | |
Outstanding, end of period (shares) | 659,876 | 698,635 | |
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) | $ 49.31 | $ 34.56 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | 57.51 | 61.24 | |
Outstanding, end of period (weighted average grant date fair value) | $ 50.94 | $ 37.43 | |
[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. |
Share Based Compensation Plan61
Share Based Compensation Plans Warrants (Details) - shares | 3 Months Ended | 12 Months Ended | |
Apr. 03, 2016 | Mar. 29, 2015 | Jan. 03, 2016 | |
Class of Warrant or Right [Line Items] | |||
Outstanding, beginning of period | 2,500,001 | 2,500,001 | |
Exercised | 0 | ||
Outstanding, end of period | 2,500,001 | ||
Common shares issued | 0 | ||
Expiration June 2016 | |||
Class of Warrant or Right [Line Items] | |||
Outstanding, beginning of period | 2,497,971 | ||
Exercised | (1,076,387) | ||
Outstanding, end of period | 1,421,584 | 2,497,971 | |
Common shares issued | 108,274 |
Commitments and Contingencies62
Commitments and Contingencies (Details) $ in Thousands | Apr. 03, 2016USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2016 (remaining nine months) | $ 14,638 |
2,017 | 18,180 |
2,018 | 17,041 |
2,019 | 15,658 |
2,020 | 13,354 |
Thereafter | 77,363 |
Total future minimum lease payments | $ 156,234 |
Commitments and Contingencies63
Commitments and Contingencies (Narrative) (Details) $ in Millions | 3 Months Ended | |
Apr. 03, 2016USD ($)Lease_Option | Mar. 29, 2015USD ($) | |
Operating Leased Assets [Line Items] | ||
Lease renewal term | 5 years | |
Rent expense | $ | $ 6.4 | $ 5.7 |
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 ($) $ in Thousands | 3 Months Ended | |
Apr. 03, 2016 | Mar. 29, 2015 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | $ 19 | $ 2,356 |
Cumulative amount incurred to date | 41,603 | |
2015 Plan | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 2,311 | |
Cumulative amount incurred to date | 5,503 | |
2014 Plan | ||
Restructuring Cost and Reserve [Line Items] | ||
Cumulative amount incurred to date | 9,503 | |
2013 Plan | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 45 | |
Cumulative amount incurred to date | 7,915 | |
2012 and Prior Plans | ||
Restructuring Cost and Reserve [Line Items] | ||
Cumulative amount incurred to date | 18,682 | |
Operating Segments | North American Residential | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 4 | |
Cumulative amount incurred to date | 5,403 | |
Operating Segments | Europe | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 1,728 | |
Cumulative amount incurred to date | 17,765 | |
Operating Segments | Corporate & Other | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 624 | |
Cumulative amount incurred to date | 18,435 | |
Operating Segments | 2015 Plan | North American Residential | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 0 | |
Cumulative amount incurred to date | 0 | |
Operating Segments | 2015 Plan | Europe | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 1,687 | |
Cumulative amount incurred to date | 2,337 | |
Operating Segments | 2015 Plan | Corporate & Other | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 624 | |
Cumulative amount incurred to date | 3,166 | |
Operating Segments | 2014 Plan | North American Residential | ||
Restructuring Cost and Reserve [Line Items] | ||
Cumulative amount incurred to date | 0 | |
Operating Segments | 2014 Plan | Europe | ||
Restructuring Cost and Reserve [Line Items] | ||
Cumulative amount incurred to date | 0 | |
Operating Segments | 2014 Plan | Corporate & Other | ||
Restructuring Cost and Reserve [Line Items] | ||
Cumulative amount incurred to date | 9,503 | |
Operating Segments | 2013 Plan | North American Residential | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 4 | |
Cumulative amount incurred to date | 3,025 | |
Operating Segments | 2013 Plan | Europe | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 41 | |
Cumulative amount incurred to date | 2,733 | |
Operating Segments | 2013 Plan | Corporate & Other | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | $ 0 | |
Cumulative amount incurred to date | 2,157 | |
Operating Segments | 2012 and Prior Plans | North American Residential | ||
Restructuring Cost and Reserve [Line Items] | ||
Cumulative amount incurred to date | 2,378 | |
Operating Segments | 2012 and Prior Plans | Europe | ||
Restructuring Cost and Reserve [Line Items] | ||
Cumulative amount incurred to date | 12,695 | |
Operating Segments | 2012 and Prior Plans | Corporate & Other | ||
Restructuring Cost and Reserve [Line Items] | ||
Cumulative amount incurred to date | $ 3,609 |
Restructuring Costs (Details)
Restructuring Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 03, 2016 | Mar. 29, 2015 | |
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, beginning balance | $ 2,390 | $ 2,333 |
Restructuring Charges | 19 | 2,356 |
Cash payments | 668 | 1,583 |
Restructuring reserve, ending balance | 1,741 | 3,106 |
Severance | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring Charges | (8) | 1,536 |
Closure Costs | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring Charges | 27 | 820 |
2015 Plan | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, beginning balance | 774 | 0 |
Restructuring Charges | 2,311 | |
Cash payments | 276 | 998 |
Restructuring reserve, ending balance | 517 | 1,313 |
2015 Plan | Severance | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring Charges | (8) | 1,536 |
2015 Plan | Closure Costs | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring Charges | 27 | 775 |
2014 Plan | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, beginning balance | 442 | 839 |
Cash payments | 13 | 223 |
Restructuring reserve, ending balance | 429 | 616 |
2014 Plan | Severance | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring Charges | 0 | 0 |
2014 Plan | Closure Costs | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring Charges | 0 | 0 |
2013 Plan | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, beginning balance | 316 | 341 |
Restructuring Charges | 45 | |
Cash payments | 192 | 65 |
Restructuring reserve, ending balance | 124 | 321 |
2013 Plan | Severance | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring Charges | 0 | 0 |
2013 Plan | Closure Costs | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring Charges | 0 | 45 |
2012 and Prior Plans | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, beginning balance | 858 | 1,153 |
Cash payments | 187 | 297 |
Restructuring reserve, ending balance | 671 | 856 |
2012 and Prior Plans | Severance | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring Charges | 0 | 0 |
2012 and Prior Plans | Closure Costs | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring Charges | $ 0 | $ 0 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 03, 2016 | Mar. 29, 2015 | |
Income Tax Disclosure [Abstract] | ||
Current | $ 1,842 | $ 1,499 |
Deferred | 4,368 | 1,765 |
Income tax expense (benefit) | $ 6,210 | $ 3,264 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 03, 2016 | Jan. 03, 2016 | |
Income Tax Disclosure [Abstract] | ||
Canadian federal statutory rate | 26.60% | |
Deferred tax asset, valuation allowance | $ 44.1 | $ 40.9 |
Supplemental Cash Flow Inform68
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 03, 2016 | Mar. 29, 2015 | |
Transactions involving cash: | ||
Interest paid | $ 13,487 | $ 19,906 |
Interest received | 70 | 167 |
Income taxes paid | 2,737 | 1,507 |
Income tax refunds | 62 | 9 |
Non-cash transactions: | ||
Property, plant and equipment additions in accounts payable | $ 4,118 | $ 2,264 |
Segment Information (Geographic
Segment Information (Geographic Segments Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 03, 2016 | Mar. 29, 2015 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | $ 489,305 | $ 434,465 |
Adjusted EBITDA | 58,241 | 37,788 |
Operating Segments | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 494,005 | 438,382 |
Intersegment Eliminations | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | (4,700) | (3,917) |
North American Residential | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 328,729 | 273,268 |
Adjusted EBITDA | 51,375 | 29,347 |
North American Residential | Operating Segments | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 330,616 | 274,641 |
North American Residential | Intersegment Eliminations | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | (1,887) | (1,373) |
Europe | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 80,591 | 75,025 |
Adjusted EBITDA | 10,118 | 6,569 |
Europe | Operating Segments | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 80,607 | 75,103 |
Europe | Intersegment Eliminations | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | (16) | (78) |
Architectural | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 73,512 | 66,924 |
Adjusted EBITDA | 4,431 | 4,030 |
Architectural | Operating Segments | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 76,309 | 69,390 |
Architectural | Intersegment Eliminations | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | (2,797) | (2,466) |
Corporate & Other | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 6,473 | 19,248 |
Adjusted EBITDA | (7,683) | (2,158) |
Corporate & Other | Operating Segments | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 6,473 | 19,248 |
Corporate & Other | Intersegment Eliminations | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | $ 0 | $ 0 |
Segment Information (Reconcilia
Segment Information (Reconciliation of Consolidated Adjusted EBITDA to Net Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 03, 2016 | Mar. 29, 2015 | |
Segment Reporting [Abstract] | ||
Adjusted EBITDA | $ 58,241 | $ 37,788 |
Depreciation | 14,570 | 15,306 |
Amortization | 6,464 | 5,011 |
Share based compensation expense | 3,728 | 2,379 |
Loss (gain) on disposal of property, plant and equipment | 132 | (56) |
Restructuring costs | 19 | 2,356 |
Interest expense (income), net | 7,232 | 11,753 |
Loss on extinguishment of debt | 0 | 28,046 |
Other expense (income), net | 786 | (1,184) |
Income tax expense (benefit) | 6,210 | 3,264 |
Loss (income) from discontinued operations, net of tax | 188 | 229 |
Net income (loss) attributable to non-controlling interest | (1,084) | (1,736) |
Net income (loss) attributable to Masonite | $ 17,828 | $ (31,052) |
Fair Value of Financial Instr71
Fair Value of Financial Instruments (Details) - Senior Notes - Fair Value, Inputs, Level 2 - USD ($) $ in Millions | Apr. 03, 2016 | Jan. 03, 2016 |
Estimate of Fair Value Measurement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Estimated fair value of senior notes | $ 490.4 | $ 484.3 |
Reported Value Measurement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Estimated fair value of senior notes | $ 469 | $ 468.8 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Apr. 03, 2016 | Mar. 29, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Net income (loss) attributable to Masonite | $ 17,828 | $ (31,052) |
Income (loss) from discontinued operations, net of tax | (188) | (229) |
Income (loss) from continuing operations attributable to Masonite | $ 18,016 | $ (30,823) |
Effect of dilutive securities: | ||
Shares used in computing basic earnings per share | 30,494,976 | 30,056,085 |
Incremental shares issuable under share compensation plans and warrants | 876,980 | 0 |
Shares used in computing diluted earnings per share | 31,371,956 | 30,056,085 |
Basic earnings (loss) per common share attributable to Masonite: | ||
Continuing operations attributable to Masonite | $ 0.59 | $ (1.02) |
Discontinued operations attributable to Masonite, net of tax | (0.01) | (0.01) |
Total Basic earnings per common share attributable to Masonite | 0.58 | (1.03) |
Continuing operations attributable to Masonite | 0.57 | (1.02) |
Discontinued operations attributable to Masonite, net of tax | 0 | (0.01) |
Total Diluted earnings per common share attributable to Masonite | $ 0.57 | $ (1.03) |
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 | 0 | 2,500,001 |
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 | 0 | 489,427 |
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 | 0 | 472,556 |
Other Comprehensive Income an73
Other Comprehensive Income and Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Apr. 03, 2016 | Mar. 29, 2015 | Jan. 03, 2016 | |
Accumulated Foreign Exchange Gains (Losses) [Roll Forward] | |||
Accumulated foreign exchange gains (losses), beginning of period | $ (90,111) | $ (57,473) | $ (57,473) |
Foreign exchange gain (loss) | 3,872 | (35,140) | |
Less: foreign exchange gain (loss) attributable to non-controlling interest | 487 | (685) | |
Accumulated foreign exchange gains (losses), end of period | (86,726) | (91,928) | (90,111) |
Accumulated Amortization of Actuarial Net Losses [Roll Forward] | |||
Accumulated pension and other post-retirement adjustments, beginning of period | (17,837) | (18,786) | (18,786) |
Amortization of actuarial net losses | (242) | (220) | |
Income tax benefit (expense) on amortization of actuarial net losses | (96) | (87) | |
Accumulated pension and other post-retirement adjustments | (17,691) | (18,653) | (17,837) |
Accumulated other comprehensive income (loss) | (104,417) | (110,581) | (107,948) |
Other comprehensive income (loss), net of tax: | 4,018 | (35,007) | $ (32,789) |
Less: other comprehensive income (loss) attributable to non-controlling interest | 487 | (685) | |
Other comprehensive income (loss) attributable to Masonite | $ 3,531 | $ (34,322) |
Variable Interest Entity (Detai
Variable Interest Entity (Details) - USD ($) $ in Thousands | Apr. 03, 2016 | Jan. 03, 2016 |
Variable Interest Entity [Line Items] | ||
Current assets | $ 573,944 | $ 558,946 |
Property, plant and equipment, net | 539,175 | 534,234 |
Long-term deferred income taxes | 11,950 | 16,899 |
Other assets, net | 17,327 | 16,157 |
Current liabilities | (230,759) | (232,518) |
Other long-term liabilities | (42,492) | (43,527) |
Net assets of the VIE consolidated by Masonite | 651,585 | 642,387 |
Variable Interest Entity, Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Current assets | 11,386 | 9,987 |
Property, plant and equipment, net | 15,108 | 15,638 |
Long-term deferred income taxes | 10,073 | 9,121 |
Other assets, net | 2,268 | 2,270 |
Current liabilities | (3,584) | (5,133) |
Other long-term liabilities | (3,249) | (2,944) |
Non-controlling interest | (5,227) | (4,981) |
Net assets of the VIE consolidated by Masonite | $ 26,775 | $ 23,958 |
Variable Interest Entity (Narra
Variable Interest Entity (Narrative) (Details) $ in Thousands | Apr. 03, 2016USD ($) | Jan. 03, 2016USD ($) | Mar. 29, 2015USD ($) | Dec. 28, 2014USD ($) |
Variable Interest Entity [Line Items] | ||||
Cash and cash equivalents | $ 49,982 | $ 89,187 | $ 90,101 | $ 192,037 |
Variable Interest Entity, Primary Beneficiary | ||||
Variable Interest Entity [Line Items] | ||||
Number of variable interest entities | 1 | 1 | ||
Cash and cash equivalents | $ 5,200 | $ 2,100 |