Document
Document - shares | 3 Months Ended | |
Apr. 02, 2017 | May 04, 2017 | |
Entity [Abstract] | ||
Entity Registrant Name | MASONITE INTERNATIONAL CORPORATION | |
Entity Central Index Key | 893,691 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Apr. 2, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 29,856,884 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 02, 2017 | Apr. 03, 2016 | |
Statement of Comprehensive Income [Abstract] | ||
Net sales | $ 487,181 | $ 489,305 |
Cost of goods sold | 391,624 | 391,060 |
Gross profit | 95,557 | 98,245 |
Selling, general and administration expenses | 64,845 | 64,898 |
Restructuring costs | 293 | 19 |
Operating income (loss) | 30,419 | 33,328 |
Interest expense (income), net | 7,024 | 7,232 |
Other expense (income), net | (249) | 786 |
Income (loss) from continuing operations before income tax expense (benefit) | 23,644 | 25,310 |
Income tax expense (benefit) | (1,679) | 6,210 |
Income (loss) from continuing operations | 25,323 | 19,100 |
Income (loss) from discontinued operations, net of tax | (245) | (188) |
Net income (loss) | 25,078 | 18,912 |
Less: net income (loss) attributable to non-controlling interest | 1,513 | 1,084 |
Net income (loss) attributable to Masonite | $ 23,565 | $ 17,828 |
Earnings (loss) per common share attributable to Masonite: | ||
Basic earnings per common share attributable to Masonite (in dollars per share) | $ 0.79 | $ 0.58 |
Diluted earnings per common share attributable to Masonite (in dollars per share) | 0.77 | 0.57 |
Earnings (loss) per common share from continuing operations attributable to Masonite: | ||
Basic (in dollars per share) | 0.80 | 0.59 |
Diluted (in dollars per share) | $ 0.78 | $ 0.57 |
Other comprehensive income (loss): | ||
Net income (loss) | $ 25,078 | $ 18,912 |
Foreign currency translation gain (loss) | 5,730 | 3,872 |
Amortization of actuarial net losses | 292 | 242 |
Income tax benefit (expense) related to other comprehensive income (loss) | (757) | (96) |
Other comprehensive income (loss), net of tax | 5,265 | 4,018 |
Comprehensive income (loss) | 30,343 | 22,930 |
Less: comprehensive income (loss) attributable to non-controlling interest | 1,617 | 1,571 |
Comprehensive income (loss) attributable to Masonite | $ 28,726 | $ 21,359 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Apr. 02, 2017 | Jan. 01, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 34,473 | $ 71,714 |
Restricted cash | 12,210 | 12,196 |
Accounts receivable, net | 270,846 | 242,197 |
Inventories, net | 238,375 | 225,940 |
Prepaid expenses | 24,035 | 24,291 |
Income taxes receivable | 2,662 | 2,399 |
Total current assets | 582,601 | 578,737 |
Property, plant and equipment, net | 541,023 | 542,088 |
Investment in equity investees | 9,599 | 9,302 |
Goodwill | 129,589 | 129,286 |
Intangible assets, net | 186,334 | 190,154 |
Long-term deferred income taxes | 9,917 | 9,478 |
Other assets, net | 19,641 | 16,816 |
Total assets | 1,478,704 | 1,475,861 |
Current liabilities: | ||
Accounts payable | 107,239 | 96,178 |
Accrued expenses | 112,505 | 133,799 |
Income taxes payable | 702 | 1,201 |
Total current liabilities | 220,446 | 231,178 |
Long-term debt | 471,242 | 470,745 |
Long-term deferred income taxes | 70,810 | 70,423 |
Other liabilities | 40,604 | 43,739 |
Total liabilities | 803,102 | 816,085 |
Commitments and Contingencies (Note 8) | ||
Equity: | ||
Share capital: unlimited shares authorized, no par value, 29,929,160 and 29,774,784 shares issued and outstanding as of April 2, 2017, and January 1, 2017, respectively | 658,156 | 650,007 |
Additional paid-in capital | 220,357 | 234,926 |
Accumulated deficit | (73,595) | (89,063) |
Accumulated other comprehensive income (loss) | (143,825) | (148,986) |
Total equity attributable to Masonite | 661,093 | 646,884 |
Equity attributable to non-controlling interests | 14,509 | 12,892 |
Total equity | 675,602 | 659,776 |
Total liabilities and equity | $ 1,478,704 | $ 1,475,861 |
Condensed Consolidated Balance4
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - shares | Apr. 02, 2017 | Jan. 01, 2017 |
Statement of Financial Position [Abstract] | ||
Shares issued | 29,929,160 | 29,774,784 |
Shares outstanding | 29,929,160 | 29,774,784 |
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 Jan. 03, 2016 | 30,427,865 | ||||||
Opening Balance, Value at Jan. 03, 2016 | $ 685,726 | $ 663,600 | $ 231,363 | $ (114,468) | $ (107,948) | $ 672,547 | $ 13,179 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 104,142 | 98,622 | 98,622 | 5,520 | |||
Other comprehensive income (loss), net of tax | (40,813) | (41,038) | (41,038) | 225 | |||
Dividends to non-controlling interests | (6,032) | 0 | (6,032) | ||||
Share based compensation expense | 18,790 | 18,790 | 18,790 | ||||
Common shares issued for delivery of share based awards, Shares | 366,556 | ||||||
Common shares issued for delivery of share based awards, Value | 0 | $ 7,901 | (7,901) | 0 | |||
Common shares withheld to cover income taxes payable due to delivery of share based awards | (4,210) | (4,210) | (4,210) | ||||
Common shares issued under employee stock purchase plan | 17,469 | ||||||
Common shares issued under employee stock purchase plan, value | 888 | $ 1,090 | (202) | 888 | |||
Common shares issued for exercise of warrants, Shares | 630,951 | ||||||
Common shares issued for exercise of warrants, Value | 10,487 | $ 13,401 | (2,914) | 10,487 | |||
Common shares repurchased and retired, Shares | (1,668,057) | ||||||
Common shares repurchased and retired, Value | $ (109,202) | $ (35,985) | (73,217) | (109,202) | |||
Ending Balance, Shares at Jan. 01, 2017 | 29,774,784 | 29,774,784 | |||||
Ending Balance, Value at Jan. 01, 2017 | $ 659,776 | $ 650,007 | 234,926 | (89,063) | (148,986) | 646,884 | 12,892 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 25,078 | 23,565 | 23,565 | 1,513 | |||
Other comprehensive income (loss), net of tax | 5,265 | 5,161 | 5,161 | 104 | |||
Share based compensation expense | 2,427 | 2,427 | 2,427 | ||||
Common shares issued for delivery of share based awards, Shares | 289,471 | ||||||
Common shares issued for delivery of share based awards, Value | 0 | $ 10,681 | (10,681) | 0 | |||
Common shares withheld to cover income taxes payable due to delivery of share based awards | (6,167) | (6,167) | (6,167) | ||||
Common shares issued under employee stock purchase plan | 9,352 | ||||||
Common shares issued under employee stock purchase plan, value | 475 | $ 623 | (148) | 475 | |||
Common shares repurchased and retired, Shares | (144,447) | ||||||
Common shares repurchased and retired, Value | $ (11,252) | $ (3,155) | (8,097) | (11,252) | |||
Ending Balance, Shares at Apr. 02, 2017 | 29,929,160 | 29,929,160 | |||||
Ending Balance, Value at Apr. 02, 2017 | $ 675,602 | $ 658,156 | $ 220,357 | $ (73,595) | $ (143,825) | $ 661,093 | $ 14,509 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 02, 2017 | Apr. 03, 2016 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 25,078 | $ 18,912 |
Adjustments to reconcile net income (loss) to net cash flow provided by (used in) operating activities: | ||
Loss (income) from discontinued operations, net of tax | 245 | 188 |
Depreciation | 14,024 | 14,570 |
Amortization | 5,970 | 6,464 |
Share based compensation expense | 2,427 | 3,728 |
Deferred income taxes | (1,048) | 4,368 |
Unrealized foreign exchange loss (gain) | 266 | 1,428 |
Share of loss (income) from equity investees, net of tax | (297) | (428) |
Pension and post-retirement expense (funding), net | (1,651) | (1,443) |
Non-cash accruals and interest | 456 | 606 |
Loss (gain) on sale of property, plant and equipment | (274) | 132 |
Accounts receivable | (29,226) | (41,718) |
Inventories | (10,613) | (9,839) |
Prepaid expenses | 1,020 | (365) |
Accounts payable and accrued expenses | (4,334) | 7,258 |
Other assets and liabilities | (4,577) | (694) |
Net cash flow provided by (used in) operating activities | (2,534) | 3,167 |
Cash flows from investing activities: | ||
Proceeds from sale of property, plant and equipment | 396 | 57 |
Additions to property, plant and equipment | (14,668) | (23,756) |
Restricted cash | (14) | 0 |
Other investing activities | (1,008) | (584) |
Net cash flow provided by (used in) investing activities | (15,294) | (24,283) |
Cash flows from financing activities: | ||
Proceeds from issuance of long-term debt | 423 | 0 |
Repayments of long-term debt | (141) | (34) |
Tax witholding on share based awards | (6,167) | (278) |
Distributions to non-controlling interests | 0 | (380) |
Repurchases of common shares | (11,252) | (16,026) |
Net cash flow provided by (used in) financing activities | (17,137) | (16,718) |
Net foreign currency translation adjustment on cash | (2,276) | (1,371) |
Increase (decrease) in cash and cash equivalents | (37,241) | (39,205) |
Cash and cash equivalents, beginning of period | 71,714 | 89,187 |
Cash and cash equivalents, at end of period | $ 34,473 | $ 49,982 |
Business Overview and Significa
Business Overview and Significant Accounting Policies | 3 Months Ended |
Apr. 02, 2017 | |
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 8 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 1, 2017, as filed with the SEC. There have been no changes in the significant accounting policies from those that were disclosed in the fiscal year 2016 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 July 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2015-11, "Simplifying the Measurement of Inventory," which amended ASC 330, "Inventory." This ASU requires the measurement of inventory at the lower of cost or net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. This ASU is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years; early adoption is permitted. The adoption of this standard did not have a material impact on the presentation of our financial statements. Other Recent Accounting Pronouncements not yet Adopted In March 2017, the FASB issued ASU 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost,” which amends ASC 715, “Retirement Benefits”. This ASU requires disaggregation of the service cost component from the other components of net benefit cost. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations. This standard is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years; early adoption is permitted and retrospective application is required. We are in the process of evaluating this guidance to determine the impact it may have on our financial statements. In January 2017, the FASB issued ASU 2017-04, "Simplifying the Test for Goodwill Impairment", which amends ASC 350 "Intangibles - Goodwill and Other". This ASU simplifies the accounting for goodwill impairments and allows a goodwill impairment charge to be based upon the amount of a reporting unit's carrying value in excess of its fair value; thus, eliminating what is currently known as "Step 2" under the current guidance. This ASU is effective for annual periods beginning after December 15, 2019, and interim periods within those annual periods; early adoption is permitted and prospective application is required. We are in the process of evaluating this guidance to determine the impact it may have on our financial statements. In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers," which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The core principle of the revenue model is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In August 2015, the FASB issued ASU 2015-14, "Revenue from Contracts with Customers - Deferral of the Effective Date," and the guidance will now be effective for annual and interim periods beginning on or after December 15, 2017; early application is permitted only as of annual and interim reporting periods beginning after December 15, 2016. While we are still in the process of evaluating the effect of adoption on our consolidated financial statements and are currently assessing our contracts with customers, we do not currently expect the adoption of the new standard to have a material impact on consolidated net income (loss) attributable to Masonite, cash flows or our consolidated balance sheets. We plan to adopt this standard using the retrospective method and adoption will be effective as of January 1, 2018. |
Goodwill and Intangbile Assets
Goodwill and Intangbile Assets | 3 Months Ended |
Apr. 02, 2017 | |
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 January 1, 2017 2,843 32,410 94,033 129,286 Foreign exchange fluctuations 4 262 37 303 April 2, 2017 $ 2,847 $ 32,672 $ 94,070 $ 129,589 The cost and accumulated amortization values of our intangible assets were as follows as of the dates indicated: April 2, 2017 (In thousands) Cost Accumulated Amortization Translation Adjustment Net Book Value Definite life intangible assets: Customer relationships $ 155,927 $ (68,380 ) $ (14,901 ) $ 72,646 Patents 31,150 (20,026 ) (936 ) 10,188 Software 31,778 (27,883 ) (223 ) 3,672 Other 15,480 (9,823 ) (2,097 ) 3,560 234,335 (126,112 ) (18,157 ) 90,066 Indefinite life intangible assets: Trademarks and tradenames 108,338 — (12,070 ) 96,268 Total intangible assets $ 342,673 $ (126,112 ) $ (30,227 ) $ 186,334 January 1, 2017 (In thousands) Cost Accumulated Amortization Translation Adjustment Net Book Value Definite life intangible assets: Customer relationships $ 155,927 $ (64,762 ) $ (15,261 ) $ 75,904 Patents 30,698 (19,451 ) (971 ) 10,276 Software 31,222 (26,865 ) (234 ) 4,123 Other 12,280 (9,147 ) (1,883 ) 1,250 230,127 (120,225 ) (18,349 ) 91,553 Indefinite life intangible assets: Trademarks and tradenames 111,538 — (12,937 ) 98,601 Total intangible assets $ 341,665 $ (120,225 ) $ (31,286 ) $ 190,154 Amortization of intangible assets was $5.9 million and $6.2 million for the three months ended April 2, 2017 , and April 3, 2016 , 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 2, 2017 , is as follows: (In thousands) Fiscal year: 2017 (remaining nine months) $ 17,318 2018 16,756 2019 14,571 2020 12,027 2021 9,220 |
Accounts Receivable
Accounts Receivable | 3 Months Ended |
Apr. 02, 2017 | |
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 54.7% and 57.3% of total accounts receivable as of April 2, 2017 , and January 1, 2017 , respectively. Our two largest customers, The Home Depot, Inc. and Lowe's Companies, Inc., each accounted for more than 10% of the consolidated gross accounts receivable balance as of April 2, 2017 , and January 1, 2017 . No other individual customers accounted for greater than 10% of consolidated gross accounts receivable balance at either April 2, 2017 , or January 1, 2017 . The allowance for doubtful accounts balance was $1.1 million and $1.0 million as of April 2, 2017 , and January 1, 2017 , 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. 02, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories The amounts of inventory on hand were as follows as of the dates indicated: (In thousands) April 2, January 1, Raw materials $ 171,484 $ 165,896 Finished goods 73,165 65,791 Provision for obsolete or aged inventory (6,274 ) (5,747 ) Inventories, net $ 238,375 $ 225,940 |
Property, Plant and Equipment
Property, Plant and Equipment | 3 Months Ended |
Apr. 02, 2017 | |
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 2, January 1, Land $ 24,718 $ 24,562 Buildings 164,898 163,802 Machinery and equipment 605,543 595,929 Property, plant and equipment, gross 795,159 784,293 Accumulated depreciation (254,136 ) (242,205 ) Property, plant and equipment, net $ 541,023 $ 542,088 Total depreciation expense was $14.0 million and $14.6 million in the three months ended April 2, 2017 , and April 3, 2016 , 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. 02, 2017 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt (In thousands) April 2, January 1, 5.625% senior unsecured notes due 2023 $ 475,000 $ 475,000 Debt issuance costs for 2023 Notes (5,183 ) (5,393 ) Capital lease obligations 632 768 Other long-term debt 793 370 Total long-term debt $ 471,242 $ 470,745 Interest expense related to our consolidated indebtedness under senior unsecured notes was $6.9 million and $7.0 million for the three months ended April 2, 2017 , and April 3, 2016 , 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 of prior 8.25% senior unsecured notes due 2021 and to pay related premiums, fees and expenses. We may redeem the 2023 Notes, in whole or in part, at any time prior to March 15, 2018, at a price equal to 100% of the principal amount plus the applicable premium, plus accrued and unpaid interest, if any, to the date of redemption. The applicable premium means, with respect to a note at any date of redemption, the greater of (i) 1.00% of the then-outstanding principal amount of such note and (ii) the excess of (a) the present value at such date of redemption of (1) the redemption price of such note at March 15, 2018, plus (2) all remaining required interest payments due on such note through such date (excluding accrued but unpaid interest to the date of redemption), computed using a discount rate equal to the Treasury Rate, 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 2, 2017 , and January 1, 2017 , 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 entered into a $150.0 million asset-based revolving credit facility (the "ABL Facility") maturing on April 9, 2020. 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 secured 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 2, 2017 , and January 1, 2017 , we were in compliance with all covenants under the credit agreement governing the ABL Facility and there were no amounts outstanding under the ABL Facility. |
Share Based Compensation Plans
Share Based Compensation Plans | 3 Months Ended |
Apr. 02, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share Based Compensation Plans | Share Based Compensation Plans Share based compensation expense was $2.4 million and $3.7 million for the three months ended April 2, 2017 , and April 3, 2016 , respectively. As of April 2, 2017 , the total remaining unrecognized compensation expense related to share based compensation amounted to $23.2 million , which will be amortized over the weighted average remaining requisite service period of 2.1 years. Share based compensation expense is recognized using a graded-method approach, or to a lesser extent a cliff-vesting approach, depending on the terms of the individual award and is classified within selling, general and administration expenses in the condensed consolidated statements of comprehensive income (loss). All share based awards are settled through issuance of new shares of our common stock. The share based award agreements contain restrictions on sale or transfer other than in limited circumstances. All other transfers would cause the share based awards to become null and void. Equity Incentive Plans 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, further amended and restated by our Board of Directors on February 23, 2015, and approved by our shareholders on May 12, 2015 (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 2, 2017 , there were 1,459,106 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 2, 2017 , the liability and asset relating to deferred compensation had a fair value of $4.6 million and $4.5 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 2, 2017 , 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. We recognize forfeitures of SARs in the period in which they occur. The total fair value of SARs vested was $0.4 million during the three months ended April 2, 2017 . No SARs vested during the three months ended and April 3, 2016 . Three Months Ended April 2, 2017 Stock Appreciation Rights Aggregate Intrinsic Value (in thousands) Weighted Average Exercise Price Average Remaining Contractual Life (Years) Outstanding, beginning of period 790,290 $ 32,659 $ 24.47 4.6 Granted 59,265 77.00 Exercised (181,965 ) 10,846 19.04 Forfeited (9,019 ) 65.21 Outstanding, end of period 658,571 $ 32,339 $ 30.15 5.0 Exercisable, end of period 556,388 $ 31,248 $ 23.09 4.2 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 Forfeited (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 The value of SARs granted in the three months ended April 2, 2017 , as determined using the Black-Scholes Merton valuation model, was $1.3 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: 2017 Grants 2016 Grants SAR value (model conclusion) $ 22.65 $ 16.78 Risk-free rate 2.0 % 1.6 % Expected dividend yield 0.0 % 0.0 % Expected volatility 25.8 % 26.2 % Expected term (years) 6.0 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. We recognize forfeitures of RSUs in the period in which they occur. Three Months Ended April 2, 2017 April 3, 2016 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 501,926 $ 58.51 526,930 $ 49.31 Granted 226,808 70.60 172,251 57.51 Delivered (176,077 ) (31,120 ) Withheld to cover (1) (54,614 ) (4,745 ) Forfeited (30,664 ) (3,440 ) Outstanding, end of period 467,379 $ 65.72 659,876 $ 50.94 ____________ (1) A portion of the vested RSUs delivered were net share settled to cover statutory requirements for income and other employment taxes. 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-third of the RSUs granted during the three months ended April 2, 2017 , 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 2, 2017 , was $16.0 million and is being recognized over the weighted average requisite service period of 2.8 years. During the three months ended April 2, 2017 , there were 230,691 RSUs vested at a fair value of $12.8 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 had an expiration date of June 9, 2016 (the "2016 Warrants"). During the six months prior to their respective expiration dates, the warrants provided the holders with a cashless exercise option. There was no activity related to warrants during the three months ended April 2, 2017, and there were no warrants outstanding as of either April 2, 2017, or January 1, 2017. During the three months ended April 3, 2016, holders of the 2016 Warrants exercised 1,076,387 warrants via the cashless option and we issued 108,274 new common shares to the holders. We have accounted for these warrants as equity instruments. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Apr. 02, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Leases 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: 2017 (remaining nine months) $ 16,227 2018 20,404 2019 19,061 2020 16,361 2021 12,453 Thereafter 72,254 Total future minimum lease payments $ 156,760 Total rent expense, including non-cancelable operating leases and month-to-month leases, was $7.1 million and $6.4 million for the three months ended April 2, 2017 , and April 3, 2016 , 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. Legal Proceedings In November 2015, Derrick Byrd, a former hourly employee in California, filed a putative class action lawsuit against us in California Superior Court alleging violations of California wage and hour laws with respect to meal periods and rest breaks and other technical wage and hour issues. In January 2016, we removed the lawsuit to the United States District Court for the Central District of California and on February 25, 2016, the court dismissed the complaint in its entirety. On March 18, 2016, the plaintiff filed an amended complaint, which we moved to dismiss, and we moved to strike several of the plaintiff’s causes of action. On July 7, 2016, the court dismissed several of the plaintiff’s causes of action and gave the plaintiff leave to amend. On July 29, 2016, the plaintiff filed a second amended complaint containing a narrower version of nine of the eleven original claims. We answered this amended complaint on August 12, 2016, and amended our answer on September 14, 2016. On November 28, 2016, the plaintiff filed a third amended complaint to add an additional individual as a plaintiff. On December 19, 2016, we answered this amended complaint. The plaintiffs continue to allege violations with respect to overtime pay, meal periods, rest breaks, minimum wage, timely pay, wage statement detail and reimbursement of business expenses. The lawsuit seeks damages, penalties, attorney’s fees and an award under the California Private Attorney General Act. Discovery is underway. The court has set the deadline for the plaintiff to file his motion for class certification for August 21, 2017, and the trial date has been set for November 28, 2017, although those dates may be extended. The parties have engaged in preliminary settlement negotiations and a mediation session is scheduled to be held in May 2017. While we intend to defend the lawsuit vigorously, there can be no assurance that the ultimate resolution of this lawsuit will not have a material, adverse effect on our consolidated financial condition or results of operations. In addition, from time to time, we are involved in various claims, legal actions and government audits. In the opinion of management, the ultimate disposition of these matters, individually and in the aggregate, will not have a material effect on our financial condition, results of operations or cash flows. |
Restructuring Costs
Restructuring Costs | 3 Months Ended |
Apr. 02, 2017 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Costs | Restructuring Costs Restructuring costs were not material in the three months ended April 2, 2017 , or April 3, 2016. The following table summarizes the cumulative restructuring charges recorded by plan: Cumulative Amount Incurred Through April 2, 2017 (In thousands) North American Residential Europe Architectural Corporate & Other Total 2016 Plan $ — $ — $ 1,584 $ — $ 1,584 2015 Plan — 2,335 — 3,303 5,638 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 $ 17,763 $ 1,584 $ 18,572 $ 43,322 During 2016, we began implementing a plan (the "2016 Plan") to close one manufacturing facility in the Architectural segment, which includes the reduction of approximately 140 positions. The 2016 Plan is expected to improve our cost structure and enhance operational efficiencies, and is expected to be completed by the end of the third quarter of 2017. Costs associated with the 2016 Plan include closure costs and severance. As of April 2, 2017 , we expect to incur approximately $2.2 million of additional charges related to the 2016 Plan. Our restructuring plans initiated in 2015 and prior years are described in detail in our Annual Report on Form 10-K for the year ended January 1, 2017. Costs associated with the 2015, 2014, 2013 and 2012 and Prior Plans include severance and closure charges and are substantially completed. The 2013 Plan also included impairment of certain property, plant and equipment. 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 2, 2017 , we do not expect to incur any material future charges relating to the 2015 Plan, the 2013 Plan or the 2012 and Prior Plans and, pending the ultimate resolution of the Stay of Proceedings, we do not anticipate any material future charges related to the 2014 Plan. The changes in the accrual for restructuring by activity were as follows for the periods indicated: (In thousands) January 1, Severance Cash Payments April 2, 2016 Plan $ 1,300 $ 271 $ 367 $ 1,204 2015 Plan 282 22 76 228 2014 Plan 426 — — 426 2012 and Prior Plans 465 — 27 438 Total $ 2,473 $ 293 $ 470 $ 2,296 (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 |
Income Taxes
Income Taxes | 3 Months Ended |
Apr. 02, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes 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. In addition, we recognized $5.0 million of income tax benefit due to the exercise and delivery of share-based awards during the three months ended April 2, 2017 . There was no such benefit recognized during the three months ended April 3, 2016 . |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 3 Months Ended |
Apr. 02, 2017 | |
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 2, 2017 April 3, 2016 Transactions involving cash: Interest paid $ 13,592 $ 13,487 Interest received 54 70 Income taxes paid 2,763 2,737 Income tax refunds 13 62 Non-cash transactions: Property, plant and equipment additions in accounts payable 3,984 4,118 |
Segment Information
Segment Information | 3 Months Ended |
Apr. 02, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information 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 and Central Eastern Europe 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. 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. Adjusted EBITDA 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 2, 2017 (In thousands) North American Residential Europe Architectural Corporate & Other Total Net sales $ 339,129 $ 70,827 $ 75,919 $ 7,341 $ 493,216 Intersegment sales (1,087 ) (856 ) (4,092 ) — (6,035 ) Net sales to external customers $ 338,042 $ 69,971 $ 71,827 $ 7,341 $ 487,181 Adjusted EBITDA $ 44,937 $ 7,674 $ 5,214 $ (4,966 ) $ 52,859 (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 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 2, 2017 April 3, 2016 Adjusted EBITDA $ 52,859 $ 58,241 Less (plus): Depreciation 14,024 14,570 Amortization 5,970 6,464 Share based compensation expense 2,427 3,728 Loss (gain) on disposal of property, plant and equipment (274 ) 132 Restructuring costs 293 19 Interest expense (income), net 7,024 7,232 Other expense (income), net (249 ) 786 Income tax expense (benefit) (1,679 ) 6,210 Loss (income) from discontinued operations, net of tax 245 188 Net income (loss) attributable to non-controlling interest 1,513 1,084 Net income (loss) attributable to Masonite $ 23,565 $ 17,828 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Apr. 02, 2017 | |
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 2, 2017 , and January 1, 2017 , was $478.1 million and $485.4 million , respectively, compared to a carrying value of $469.8 million and $469.6 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. 02, 2017 | |
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 2, 2017 April 3, 2016 Net income (loss) attributable to Masonite $ 23,565 $ 17,828 Less: income (loss) from discontinued operations, net of tax (245 ) (188 ) Income (loss) from continuing operations attributable to Masonite $ 23,810 $ 18,016 Shares used in computing basic earnings per share 29,861,099 30,494,976 Effect of dilutive securities: Incremental shares issuable under share compensation plans and warrants 593,889 876,980 Shares used in computing diluted earnings per share 30,454,988 31,371,956 Basic earnings (loss) per common share attributable to Masonite: Continuing operations attributable to Masonite $ 0.80 $ 0.59 Discontinued operations attributable to Masonite, net of tax (0.01 ) (0.01 ) Total Basic earnings per common share attributable to Masonite $ 0.79 $ 0.58 Diluted earnings (loss) per common share attributable to Masonite: Continuing operations attributable to Masonite $ 0.78 $ 0.57 Discontinued operations attributable to Masonite, net of tax (0.01 ) — Total Diluted earnings per common share attributable to Masonite $ 0.77 $ 0.57 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. |
Other Comprehensive Income and
Other Comprehensive Income and Accumulated Other Comprehensive Income | 3 Months Ended |
Apr. 02, 2017 | |
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 2, 2017 April 3, 2016 Accumulated foreign currency translation gains (losses), beginning of period $ (127,433 ) $ (90,111 ) Foreign currency translation gain (loss) 5,730 3,872 Income tax benefit (expense) on foreign currency translation gain (loss) (643 ) — Less: foreign currency translation gain (loss) attributable to non-controlling interest 104 487 Accumulated foreign currency translation gains (losses), end of period (122,450 ) (86,726 ) Accumulated pension and other post-retirement adjustments, beginning of period (21,553 ) (17,837 ) Amortization of actuarial net losses 292 242 Income tax benefit (expense) on amortization of actuarial net losses (114 ) (96 ) Accumulated pension and other post-retirement adjustments (21,375 ) (17,691 ) Accumulated other comprehensive income (loss) $ (143,825 ) $ (104,417 ) Other comprehensive income (loss), net of tax $ 5,265 $ 4,018 Less: other comprehensive income (loss) attributable to non-controlling interest 104 487 Other comprehensive income (loss) attributable to Masonite $ 5,161 $ 3,531 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. 02, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entity | Variable Interest Entity As of April 2, 2017 , and January 1, 2017 , we held an interest in one variable interest entity ("VIE"), Magna Foremost Sdn Bhd, which is located in Bintulu, 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 2, January 1, Current assets $ 9,041 $ 6,633 Property, plant and equipment, net 13,228 13,673 Long-term deferred income taxes 6,550 6,505 Other assets, net 1,932 1,789 Current liabilities (2,275 ) (2,044 ) Other long-term liabilities (2,143 ) (2,115 ) Non-controlling interest (5,260 ) (4,664 ) Net assets of the VIE consolidated by Masonite $ 21,073 $ 19,777 Current assets include $4.9 million and $2.6 million of cash and cash equivalents as of April 2, 2017 , and January 1, 2017 , 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. |
Business Overview and Signifi23
Business Overview and Significant Accounting Policies (Policies) | 3 Months Ended |
Apr. 02, 2017 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements | Adoption of Recent Accounting Pronouncements In July 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2015-11, "Simplifying the Measurement of Inventory," which amended ASC 330, "Inventory." This ASU requires the measurement of inventory at the lower of cost or net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. This ASU is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years; early adoption is permitted. The adoption of this standard did not have a material impact on the presentation of our financial statements. Other Recent Accounting Pronouncements not yet Adopted In March 2017, the FASB issued ASU 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost,” which amends ASC 715, “Retirement Benefits”. This ASU requires disaggregation of the service cost component from the other components of net benefit cost. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations. This standard is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years; early adoption is permitted and retrospective application is required. We are in the process of evaluating this guidance to determine the impact it may have on our financial statements. In January 2017, the FASB issued ASU 2017-04, "Simplifying the Test for Goodwill Impairment", which amends ASC 350 "Intangibles - Goodwill and Other". This ASU simplifies the accounting for goodwill impairments and allows a goodwill impairment charge to be based upon the amount of a reporting unit's carrying value in excess of its fair value; thus, eliminating what is currently known as "Step 2" under the current guidance. This ASU is effective for annual periods beginning after December 15, 2019, and interim periods within those annual periods; early adoption is permitted and prospective application is required. We are in the process of evaluating this guidance to determine the impact it may have on our financial statements. In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers," which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The core principle of the revenue model is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In August 2015, the FASB issued ASU 2015-14, "Revenue from Contracts with Customers - Deferral of the Effective Date," and the guidance will now be effective for annual and interim periods beginning on or after December 15, 2017; early application is permitted only as of annual and interim reporting periods beginning after December 15, 2016. While we are still in the process of evaluating the effect of adoption on our consolidated financial statements and are currently assessing our contracts with customers, we do not currently expect the adoption of the new standard to have a material impact on consolidated net income (loss) attributable to Masonite, cash flows or our consolidated balance sheets. We plan to adopt this standard using the retrospective method and adoption will be effective as of January 1, 2018. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Apr. 02, 2017 | |
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 January 1, 2017 2,843 32,410 94,033 129,286 Foreign exchange fluctuations 4 262 37 303 April 2, 2017 $ 2,847 $ 32,672 $ 94,070 $ 129,589 |
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 2, 2017 (In thousands) Cost Accumulated Amortization Translation Adjustment Net Book Value Definite life intangible assets: Customer relationships $ 155,927 $ (68,380 ) $ (14,901 ) $ 72,646 Patents 31,150 (20,026 ) (936 ) 10,188 Software 31,778 (27,883 ) (223 ) 3,672 Other 15,480 (9,823 ) (2,097 ) 3,560 234,335 (126,112 ) (18,157 ) 90,066 Indefinite life intangible assets: Trademarks and tradenames 108,338 — (12,070 ) 96,268 Total intangible assets $ 342,673 $ (126,112 ) $ (30,227 ) $ 186,334 January 1, 2017 (In thousands) Cost Accumulated Amortization Translation Adjustment Net Book Value Definite life intangible assets: Customer relationships $ 155,927 $ (64,762 ) $ (15,261 ) $ 75,904 Patents 30,698 (19,451 ) (971 ) 10,276 Software 31,222 (26,865 ) (234 ) 4,123 Other 12,280 (9,147 ) (1,883 ) 1,250 230,127 (120,225 ) (18,349 ) 91,553 Indefinite life intangible assets: Trademarks and tradenames 111,538 — (12,937 ) 98,601 Total intangible assets $ 341,665 $ (120,225 ) $ (31,286 ) $ 190,154 |
Estimated future amortization of intangible assets with definite lives | The estimated future amortization of intangible assets with definite lives as of April 2, 2017 , is as follows: (In thousands) Fiscal year: 2017 (remaining nine months) $ 17,318 2018 16,756 2019 14,571 2020 12,027 2021 9,220 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Apr. 02, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | The amounts of inventory on hand were as follows as of the dates indicated: (In thousands) April 2, January 1, Raw materials $ 171,484 $ 165,896 Finished goods 73,165 65,791 Provision for obsolete or aged inventory (6,274 ) (5,747 ) Inventories, net $ 238,375 $ 225,940 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 3 Months Ended |
Apr. 02, 2017 | |
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 2, January 1, Land $ 24,718 $ 24,562 Buildings 164,898 163,802 Machinery and equipment 605,543 595,929 Property, plant and equipment, gross 795,159 784,293 Accumulated depreciation (254,136 ) (242,205 ) Property, plant and equipment, net $ 541,023 $ 542,088 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Apr. 02, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | (In thousands) April 2, January 1, 5.625% senior unsecured notes due 2023 $ 475,000 $ 475,000 Debt issuance costs for 2023 Notes (5,183 ) (5,393 ) Capital lease obligations 632 768 Other long-term debt 793 370 Total long-term debt $ 471,242 $ 470,745 |
Share Based Compensation Plans
Share Based Compensation Plans (Tables) | 3 Months Ended |
Apr. 02, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock appreciation rights award activity | Three Months Ended April 2, 2017 Stock Appreciation Rights Aggregate Intrinsic Value (in thousands) Weighted Average Exercise Price Average Remaining Contractual Life (Years) Outstanding, beginning of period 790,290 $ 32,659 $ 24.47 4.6 Granted 59,265 77.00 Exercised (181,965 ) 10,846 19.04 Forfeited (9,019 ) 65.21 Outstanding, end of period 658,571 $ 32,339 $ 30.15 5.0 Exercisable, end of period 556,388 $ 31,248 $ 23.09 4.2 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 Forfeited (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 |
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: 2017 Grants 2016 Grants SAR value (model conclusion) $ 22.65 $ 16.78 Risk-free rate 2.0 % 1.6 % Expected dividend yield 0.0 % 0.0 % Expected volatility 25.8 % 26.2 % Expected term (years) 6.0 6.0 |
Restricted stock units award activity | Three Months Ended April 2, 2017 April 3, 2016 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 501,926 $ 58.51 526,930 $ 49.31 Granted 226,808 70.60 172,251 57.51 Delivered (176,077 ) (31,120 ) Withheld to cover (1) (54,614 ) (4,745 ) Forfeited (30,664 ) (3,440 ) Outstanding, end of period 467,379 $ 65.72 659,876 $ 50.94 ____________ (1) A portion of the vested RSUs delivered were net share settled to cover statutory requirements for income and other employment taxes. 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. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Apr. 02, 2017 | |
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: 2017 (remaining nine months) $ 16,227 2018 20,404 2019 19,061 2020 16,361 2021 12,453 Thereafter 72,254 Total future minimum lease payments $ 156,760 |
Restructuring Costs (Tables)
Restructuring Costs (Tables) | 3 Months Ended |
Apr. 02, 2017 | |
Restructuring and Related Activities [Abstract] | |
Total restructuring costs by plan | The following table summarizes the cumulative restructuring charges recorded by plan: Cumulative Amount Incurred Through April 2, 2017 (In thousands) North American Residential Europe Architectural Corporate & Other Total 2016 Plan $ — $ — $ 1,584 $ — $ 1,584 2015 Plan — 2,335 — 3,303 5,638 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 $ 17,763 $ 1,584 $ 18,572 $ 43,322 |
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 1, Severance Cash Payments April 2, 2016 Plan $ 1,300 $ 271 $ 367 $ 1,204 2015 Plan 282 22 76 228 2014 Plan 426 — — 426 2012 and Prior Plans 465 — 27 438 Total $ 2,473 $ 293 $ 470 $ 2,296 (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 |
Supplemental Cash Flow Inform31
Supplemental Cash Flow Information (Tables) | 3 Months Ended |
Apr. 02, 2017 | |
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 2, 2017 April 3, 2016 Transactions involving cash: Interest paid $ 13,592 $ 13,487 Interest received 54 70 Income taxes paid 2,763 2,737 Income tax refunds 13 62 Non-cash transactions: Property, plant and equipment additions in accounts payable 3,984 4,118 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Apr. 02, 2017 | |
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 2, 2017 (In thousands) North American Residential Europe Architectural Corporate & Other Total Net sales $ 339,129 $ 70,827 $ 75,919 $ 7,341 $ 493,216 Intersegment sales (1,087 ) (856 ) (4,092 ) — (6,035 ) Net sales to external customers $ 338,042 $ 69,971 $ 71,827 $ 7,341 $ 487,181 Adjusted EBITDA $ 44,937 $ 7,674 $ 5,214 $ (4,966 ) $ 52,859 (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 |
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 2, 2017 April 3, 2016 Adjusted EBITDA $ 52,859 $ 58,241 Less (plus): Depreciation 14,024 14,570 Amortization 5,970 6,464 Share based compensation expense 2,427 3,728 Loss (gain) on disposal of property, plant and equipment (274 ) 132 Restructuring costs 293 19 Interest expense (income), net 7,024 7,232 Other expense (income), net (249 ) 786 Income tax expense (benefit) (1,679 ) 6,210 Loss (income) from discontinued operations, net of tax 245 188 Net income (loss) attributable to non-controlling interest 1,513 1,084 Net income (loss) attributable to Masonite $ 23,565 $ 17,828 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Apr. 02, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | (In thousands, except share and per share information) Three Months Ended April 2, 2017 April 3, 2016 Net income (loss) attributable to Masonite $ 23,565 $ 17,828 Less: income (loss) from discontinued operations, net of tax (245 ) (188 ) Income (loss) from continuing operations attributable to Masonite $ 23,810 $ 18,016 Shares used in computing basic earnings per share 29,861,099 30,494,976 Effect of dilutive securities: Incremental shares issuable under share compensation plans and warrants 593,889 876,980 Shares used in computing diluted earnings per share 30,454,988 31,371,956 Basic earnings (loss) per common share attributable to Masonite: Continuing operations attributable to Masonite $ 0.80 $ 0.59 Discontinued operations attributable to Masonite, net of tax (0.01 ) (0.01 ) Total Basic earnings per common share attributable to Masonite $ 0.79 $ 0.58 Diluted earnings (loss) per common share attributable to Masonite: Continuing operations attributable to Masonite $ 0.78 $ 0.57 Discontinued operations attributable to Masonite, net of tax (0.01 ) — Total Diluted earnings per common share attributable to Masonite $ 0.77 $ 0.57 |
Other Comprehensive Income an34
Other Comprehensive Income and Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Apr. 02, 2017 | |
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 2, 2017 April 3, 2016 Accumulated foreign currency translation gains (losses), beginning of period $ (127,433 ) $ (90,111 ) Foreign currency translation gain (loss) 5,730 3,872 Income tax benefit (expense) on foreign currency translation gain (loss) (643 ) — Less: foreign currency translation gain (loss) attributable to non-controlling interest 104 487 Accumulated foreign currency translation gains (losses), end of period (122,450 ) (86,726 ) Accumulated pension and other post-retirement adjustments, beginning of period (21,553 ) (17,837 ) Amortization of actuarial net losses 292 242 Income tax benefit (expense) on amortization of actuarial net losses (114 ) (96 ) Accumulated pension and other post-retirement adjustments (21,375 ) (17,691 ) Accumulated other comprehensive income (loss) $ (143,825 ) $ (104,417 ) Other comprehensive income (loss), net of tax $ 5,265 $ 4,018 Less: other comprehensive income (loss) attributable to non-controlling interest 104 487 Other comprehensive income (loss) attributable to Masonite $ 5,161 $ 3,531 |
Variable Interest Entity (Table
Variable Interest Entity (Tables) | 3 Months Ended |
Apr. 02, 2017 | |
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 2, January 1, Current assets $ 9,041 $ 6,633 Property, plant and equipment, net 13,228 13,673 Long-term deferred income taxes 6,550 6,505 Other assets, net 1,932 1,789 Current liabilities (2,275 ) (2,044 ) Other long-term liabilities (2,143 ) (2,115 ) Non-controlling interest (5,260 ) (4,664 ) Net assets of the VIE consolidated by Masonite $ 21,073 $ 19,777 |
Business Overview and Signifi36
Business Overview and Significant Accounting Policies (Details) | Apr. 02, 2017Countryfacility |
Accounting Policies [Abstract] | |
Number of manufacturing locations | facility | 65 |
Number of countries | Country | 8 |
Goodwill and Intangible Asset37
Goodwill and Intangible Assets (Schedule of Goodwill) (Details) $ in Thousands | 3 Months Ended |
Apr. 02, 2017USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, beginning | $ 129,286 |
Goodwill, ending | 129,589 |
North American Residential | |
Goodwill [Roll Forward] | |
Goodwill, beginning | 2,843 |
Foreign exchange fluctuations | 4 |
Goodwill, ending | 2,847 |
Europe | |
Goodwill [Roll Forward] | |
Goodwill, beginning | 32,410 |
Foreign exchange fluctuations | 262 |
Goodwill, ending | 32,672 |
Architectural | |
Goodwill [Roll Forward] | |
Goodwill, beginning | 94,033 |
Foreign exchange fluctuations | 37 |
Goodwill, ending | 94,070 |
Operating Segments | |
Goodwill [Roll Forward] | |
Goodwill, beginning | 129,286 |
Foreign exchange fluctuations | 303 |
Goodwill, ending | $ 129,589 |
Goodwill and Intangible Asset38
Goodwill and Intangible Assets (Cost and Accumulated Amortized Values) (Details) - USD ($) $ in Thousands | Apr. 02, 2017 | Jan. 01, 2017 |
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | $ 234,335 | $ 230,127 |
Finite-lived intangible assets, accumulated amortization | (126,112) | (120,225) |
Finite-lived intangible assets, translation adjustment | (18,157) | (18,349) |
Finite-lived intangible assets, net | 90,066 | 91,553 |
Total intangible assets, gross | 342,673 | 341,665 |
Total intangible assets, translation adjustment | (30,227) | (31,286) |
Total intangible assets, net | 186,334 | 190,154 |
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 | (68,380) | (64,762) |
Finite-lived intangible assets, translation adjustment | (14,901) | (15,261) |
Finite-lived intangible assets, net | 72,646 | 75,904 |
Patents | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 31,150 | 30,698 |
Finite-lived intangible assets, accumulated amortization | (20,026) | (19,451) |
Finite-lived intangible assets, translation adjustment | (936) | (971) |
Finite-lived intangible assets, net | 10,188 | 10,276 |
Software | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 31,778 | 31,222 |
Finite-lived intangible assets, accumulated amortization | (27,883) | (26,865) |
Finite-lived intangible assets, translation adjustment | (223) | (234) |
Finite-lived intangible assets, net | 3,672 | 4,123 |
Other | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 15,480 | 12,280 |
Finite-lived intangible assets, accumulated amortization | (9,823) | (9,147) |
Finite-lived intangible assets, translation adjustment | (2,097) | (1,883) |
Finite-lived intangible assets, net | 3,560 | 1,250 |
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 | 108,338 | 111,538 |
Indefinite-lived intangible assets, net | 96,268 | 98,601 |
Total intangible assets, translation adjustment | $ (12,070) | $ (12,937) |
Goodwill and Intangible Asset39
Goodwill and Intangible Assets (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 02, 2017 | Apr. 03, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization of intangible assets | $ 5.9 | $ 6.2 |
Goodwill and Intangible Asset40
Goodwill and Intangible Assets (Estimated Future Amortization of Intangible Assets) (Details) $ in Thousands | Apr. 02, 2017USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2017 (remaining nine months) | $ 17,318 |
2,018 | 16,756 |
2,019 | 14,571 |
2,020 | 12,027 |
2,021 | $ 9,220 |
Accounts Receivable (Details)
Accounts Receivable (Details) $ in Millions | 3 Months Ended | 12 Months Ended |
Apr. 02, 2017USD ($)Customer | Jan. 01, 2017USD ($)Customer | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Allowance for doubtful accounts | $ | $ 1.1 | $ 1 |
Accounts Receivable | Customer Concentration Risk | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Concentration risk, customers | Customer | 10 | 10 |
Concentration risk, percent | 54.70% | 57.30% |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Apr. 02, 2017 | Jan. 01, 2017 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 171,484 | $ 165,896 |
Finished goods | 73,165 | 65,791 |
Provision for obsolete or aged inventory | (6,274) | (5,747) |
Inventories, net | $ 238,375 | $ 225,940 |
Property, Plant and Equipment43
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Apr. 02, 2017 | Jan. 01, 2017 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 795,159 | $ 784,293 |
Accumulated depreciation | (254,136) | (242,205) |
Property, plant and equipment, net | 541,023 | 542,088 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 24,718 | 24,562 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 164,898 | 163,802 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 605,543 | $ 595,929 |
Property, Plant and Equipment44
Property, Plant and Equipment (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 02, 2017 | Apr. 03, 2016 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation | $ 14,024 | $ 14,570 |
Long-Term Debt (Details)
Long-Term Debt (Details) - USD ($) $ in Thousands | Apr. 02, 2017 | Jan. 01, 2017 | Mar. 23, 2015 |
Debt Instrument [Line Items] | |||
Capital lease obligations | $ 632 | $ 768 | |
Other long-term debt | 793 | 370 | |
Total long-term debt | 471,242 | 470,745 | |
Senior Notes | Senior Notes Due 2023 | |||
Debt Instrument [Line Items] | |||
Long-term debt | 475,000 | 475,000 | |
Debt issuance costs for 2023 Notes | $ (5,183) | $ (5,393) | $ (7,100) |
Long-Term Debt (Narrative) (Det
Long-Term Debt (Narrative) (Details) - USD ($) | Apr. 09, 2015 | Mar. 23, 2015 | Apr. 02, 2017 | Apr. 03, 2016 | Jan. 03, 2016 | Jan. 01, 2017 |
Debt Instrument [Line Items] | ||||||
Proceeds from issuance of long-term debt | $ 423,000 | $ 0 | ||||
Senior Notes | Senior Notes Due 2023 | ||||||
Debt Instrument [Line Items] | ||||||
Interest expense | 6,900,000 | |||||
Aggregate principal | $ 475,000,000 | |||||
Interest rate stated percentage | 5.625% | |||||
Proceeds from issuance of long-term debt | $ 467,900,000 | |||||
Debt issuance costs | (7,100,000) | $ (5,183,000) | $ (5,393,000) | |||
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 | $ 7,000,000 | |||||
Senior Notes | Senior Notes Due 2021 | ||||||
Debt Instrument [Line Items] | ||||||
Extinguishment of debt | $ 500,000,000 | |||||
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 | ||||
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 Plan47
Share Based Compensation Plans Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | Jul. 12, 2012 | Jan. 01, 2012 | Apr. 02, 2017 | Apr. 03, 2016 | Jun. 09, 2012 | Jun. 09, 2009 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation | $ 2,427 | $ 3,728 | ||||
Share based compensation unrecognized | $ 23,200 | |||||
Weighted average remaining requisite service period | 2 years 1 month 7 days | |||||
Deferred compensation liability | $ 4,600 | |||||
Deferred compensation asset | $ 4,500 | |||||
Warrants issued | 5,833,335 | |||||
Exercise price of warrants | $ 50.77 | $ 55.31 | ||||
Dividends, per share, cash paid | $ 4.54 | |||||
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 | 2,500,001 | |||||
Warrants exercised | 1,076,387 | |||||
Common shares issued for exercise of warrants, Shares | 108,274 | |||||
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 | 1,459,106 | |||||
Stock Appreciation Rights (SARs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Plan term | 10 years | |||||
Award vesting period | 3 years | |||||
Vested, fair value | $ 400 | |||||
Vested, shares | 0 | |||||
Award granted, fair value | $ 1,300 | |||||
Average requisite service period | 2 years | |||||
Restricted Stock Units (RSUs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 3 years | |||||
Award granted, fair value | $ 16,000 | |||||
Average requisite service period | 2 years 9 months 22 days | |||||
Units vested | 230,691 | |||||
Fair value of shares vested | $ 12,800 | |||||
Service Requirement | Restricted Stock Units (RSUs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting percentage | 33.00% | |||||
Service and Performance Requirements | Restricted Stock Units (RSUs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting percentage | 67.00% |
Share Based Compensation Plan48
Share Based Compensation Plans (SARs) (Details) - Stock Appreciation Rights (SARs) - USD ($) $ / shares in Units, $ in Thousands | Apr. 02, 2017 | Jan. 01, 2017 | Apr. 03, 2016 | Jan. 03, 2016 | Apr. 02, 2017 | Apr. 03, 2016 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||||
Outstanding, beginning of period, shares | 790,290 | 891,147 | ||||
Granted, shares | 59,265 | 121,805 | ||||
Exercised, shares | (181,965) | (24,443) | ||||
Forfeited, shares | (9,019) | (2,400) | ||||
Outstanding, end of period, shares | 658,571 | 790,290 | 986,109 | 891,147 | 658,571 | 986,109 |
Exercisable, shares | 556,388 | 679,384 | 556,388 | 679,384 | ||
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 | $ 32,659 | $ 36,681 | ||||
Exercised, aggregate intrinsic value | 10,846 | 1,122 | ||||
Outstanding, end period, aggregate intrinsic value | $ 32,339 | $ 32,659 | $ 40,908 | $ 36,681 | 32,339 | 40,908 |
Exercisable, aggregate intrinsic value | $ 31,248 | $ 33,765 | $ 31,248 | $ 33,765 | ||
Outstanding, beginning of period, weighted average remaining contractual term | 5 years | 4 years 7 months 9 days | 5 years 4 months 26 days | 4 years 10 months 29 days | ||
Outstanding, end of period, weighted average remaining contractual term | 5 years | 4 years 7 months 9 days | 5 years 4 months 26 days | 4 years 10 months 29 days | ||
Exercisable, weighted average remaining contractual term | 4 years 2 months 13 days | 4 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 | $ 24.47 | $ 20.07 | ||||
Granted, weighted average exercise price | 77 | 58.37 | ||||
Exercised, weighted average exercise price | 19.04 | 15.35 | ||||
Forfeited, weighted average exercise price | 65.21 | 32.68 | ||||
Outstanding, end of period, weighted average exercise price | $ 30.15 | $ 24.47 | $ 24.89 | $ 20.07 | 30.15 | 24.89 |
Exercisable, weighted average exercise price | $ 23.09 | $ 16.67 | $ 23.09 | $ 16.67 |
Share Based Compensation Plan49
Share Based Compensation Plans (Weighted Average Grant Date Assumptions) (Details) - Stock Appreciation Rights (SARs) - $ / shares | 3 Months Ended | 12 Months Ended |
Apr. 02, 2017 | Jan. 01, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Option value (model conclusion) | $ 22.65 | $ 16.78 |
Risk-free rate | 2.00% | 1.60% |
Expected dividend yield | 0.00% | 0.00% |
Expected volatility | 25.80% | 26.20% |
Expected term (in years) | 6 years | 6 years |
Share Based Compensation Plan50
Share Based Compensation Plans (RSUs) (Details) - Restricted Stock Units (RSUs) - $ / shares | 3 Months Ended | ||
Apr. 02, 2017 | Apr. 03, 2016 | ||
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) | 501,926 | 526,930 | |
Granted (shares) | 226,808 | 172,251 | |
Delivered (shares) | (176,077) | (31,120) | |
Withheld to cover (shares) | [1] | (54,614) | (4,745) |
Forfeited (shares) | (30,664) | (3,440) | |
Outstanding, end of period (shares) | 467,379 | 659,876 | |
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) | $ 58.51 | $ 49.31 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | 70.60 | 57.51 | |
Outstanding, end of period (weighted average grant date fair value) | $ 65.72 | $ 50.94 | |
[1] | A portion of the vested RSUs delivered were net share settled to cover statutory requirements for income and other employment taxes. 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. |
Commitments and Contingencies51
Commitments and Contingencies (Details) $ in Thousands | Apr. 02, 2017USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2017 (remaining nine months) | $ 16,227 |
2,018 | 20,404 |
2,019 | 19,061 |
2,020 | 16,361 |
2,021 | 12,453 |
Thereafter | 72,254 |
Total future minimum lease payments | $ 156,760 |
Commitments and Contingencies52
Commitments and Contingencies (Narrative) (Details) $ in Millions | 3 Months Ended | |
Apr. 02, 2017USD ($)Lease_Option | Apr. 03, 2016USD ($) | |
Operating Leased Assets [Line Items] | ||
Lease renewal term | 5 years | |
Rent expense | $ | $ 7.1 | $ 6.4 |
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) $ in Thousands | Apr. 02, 2017USD ($) |
Restructuring Cost and Reserve [Line Items] | |
Cumulative amount incurred to date | $ 43,322 |
2016 Plan | |
Restructuring Cost and Reserve [Line Items] | |
Cumulative amount incurred to date | 1,584 |
2015 Plan | |
Restructuring Cost and Reserve [Line Items] | |
Cumulative amount incurred to date | 5,638 |
2014 Plan | |
Restructuring Cost and Reserve [Line Items] | |
Cumulative amount incurred to date | 9,503 |
2013 Plan | |
Restructuring Cost and Reserve [Line Items] | |
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] | |
Cumulative amount incurred to date | 5,403 |
Operating Segments | Europe | |
Restructuring Cost and Reserve [Line Items] | |
Cumulative amount incurred to date | 17,763 |
Operating Segments | Architectural | |
Restructuring Cost and Reserve [Line Items] | |
Cumulative amount incurred to date | 1,584 |
Operating Segments | Corporate & Other | |
Restructuring Cost and Reserve [Line Items] | |
Cumulative amount incurred to date | 18,572 |
Operating Segments | 2016 Plan | North American Residential | |
Restructuring Cost and Reserve [Line Items] | |
Cumulative amount incurred to date | 0 |
Operating Segments | 2016 Plan | Europe | |
Restructuring Cost and Reserve [Line Items] | |
Cumulative amount incurred to date | 0 |
Operating Segments | 2016 Plan | Architectural | |
Restructuring Cost and Reserve [Line Items] | |
Cumulative amount incurred to date | 1,584 |
Operating Segments | 2016 Plan | Corporate & Other | |
Restructuring Cost and Reserve [Line Items] | |
Cumulative amount incurred to date | 0 |
Operating Segments | 2015 Plan | North American Residential | |
Restructuring Cost and Reserve [Line Items] | |
Cumulative amount incurred to date | 0 |
Operating Segments | 2015 Plan | Europe | |
Restructuring Cost and Reserve [Line Items] | |
Cumulative amount incurred to date | 2,335 |
Operating Segments | 2015 Plan | Architectural | |
Restructuring Cost and Reserve [Line Items] | |
Cumulative amount incurred to date | 0 |
Operating Segments | 2015 Plan | Corporate & Other | |
Restructuring Cost and Reserve [Line Items] | |
Cumulative amount incurred to date | 3,303 |
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 | Architectural | |
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] | |
Cumulative amount incurred to date | 3,025 |
Operating Segments | 2013 Plan | Europe | |
Restructuring Cost and Reserve [Line Items] | |
Cumulative amount incurred to date | 2,733 |
Operating Segments | 2013 Plan | Architectural | |
Restructuring Cost and Reserve [Line Items] | |
Cumulative amount incurred to date | 0 |
Operating Segments | 2013 Plan | Corporate & Other | |
Restructuring Cost and Reserve [Line Items] | |
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 | Architectural | |
Restructuring Cost and Reserve [Line Items] | |
Cumulative amount incurred to date | 0 |
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. 02, 2017 | Apr. 03, 2016 | |
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, beginning balance | $ 2,473 | $ 2,390 |
Restructuring charges | 293 | 19 |
Cash payments | 470 | 668 |
Restructuring reserve, ending balance | 2,296 | 1,741 |
Severance | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring charges | 293 | (8) |
Closure costs | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring charges | 27 | |
2016 Plan | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, beginning balance | 1,300 | |
Cash payments | 367 | |
Restructuring reserve, ending balance | 1,204 | |
2016 Plan | Severance | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring charges | 271 | |
2015 Plan | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, beginning balance | 282 | 774 |
Cash payments | 76 | 276 |
Restructuring reserve, ending balance | 228 | 517 |
2015 Plan | Severance | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring charges | 22 | (8) |
2015 Plan | Closure costs | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring charges | 27 | |
2014 Plan | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, beginning balance | 426 | 442 |
Cash payments | 0 | 13 |
Restructuring reserve, ending balance | 426 | 429 |
2014 Plan | Severance | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring charges | 0 | 0 |
2014 Plan | Closure costs | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring charges | 0 | |
2013 Plan | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, beginning balance | 316 | |
Cash payments | 192 | |
Restructuring reserve, ending balance | 124 | |
2013 Plan | Severance | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring charges | 0 | |
2013 Plan | Closure costs | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring charges | 0 | |
2012 and Prior Plans | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, beginning balance | 465 | 858 |
Cash payments | 27 | 187 |
Restructuring reserve, ending balance | 438 | 671 |
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 |
Restructuring Costs Narrative (
Restructuring Costs Narrative (Details) - Twenty Sixteen Restructuring Plans [Member] $ in Millions | 12 Months Ended | |
Jan. 01, 2017employee | Apr. 02, 2017USD ($) | |
Restructuring Cost and Reserve [Line Items] | ||
Expected number of positions to be eliminated | employee | 140 | |
Expected cost remaining | $ | $ 2.2 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) | 3 Months Ended | |
Apr. 02, 2017 | Apr. 03, 2016 | |
Income Tax Disclosure [Abstract] | ||
Canadian federal statutory rate | 26.60% | |
Income tax benefit due to the exercise and delivery of share-based awards | $ 5,000,000 | $ 0 |
Supplemental Cash Flow Inform57
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 02, 2017 | Apr. 03, 2016 | |
Transactions involving cash: | ||
Interest paid | $ 13,592 | $ 13,487 |
Interest received | 54 | 70 |
Income taxes paid | 2,763 | 2,737 |
Income tax refunds | 13 | 62 |
Non-cash transactions: | ||
Property, plant and equipment additions in accounts payable | $ 3,984 | $ 4,118 |
Segment Information (Geographic
Segment Information (Geographic Segments Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 02, 2017 | Apr. 03, 2016 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | $ 487,181 | $ 489,305 |
Adjusted EBITDA | 52,859 | 58,241 |
Operating Segments | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 493,216 | 494,005 |
Intersegment Eliminations | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | (6,035) | (4,700) |
North American Residential | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 338,042 | 328,729 |
Adjusted EBITDA | 44,937 | 51,375 |
North American Residential | Operating Segments | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 339,129 | 330,616 |
North American Residential | Intersegment Eliminations | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | (1,087) | (1,887) |
Europe | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 69,971 | 80,591 |
Adjusted EBITDA | 7,674 | 10,118 |
Europe | Operating Segments | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 70,827 | 80,607 |
Europe | Intersegment Eliminations | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | (856) | (16) |
Architectural | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 71,827 | 73,512 |
Adjusted EBITDA | 5,214 | 4,431 |
Architectural | Operating Segments | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 75,919 | 76,309 |
Architectural | Intersegment Eliminations | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | (4,092) | (2,797) |
Corporate & Other | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 7,341 | 6,473 |
Adjusted EBITDA | (4,966) | (7,683) |
Corporate & Other | Operating Segments | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 7,341 | 6,473 |
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. 02, 2017 | Apr. 03, 2016 | |
Segment Reporting [Abstract] | ||
Adjusted EBITDA | $ 52,859 | $ 58,241 |
Depreciation | 14,024 | 14,570 |
Amortization | 5,970 | 6,464 |
Share based compensation expense | 2,427 | 3,728 |
Loss (gain) on disposal of property, plant and equipment | (274) | 132 |
Restructuring costs | 293 | 19 |
Interest expense (income), net | 7,024 | 7,232 |
Other expense (income), net | (249) | 786 |
Income tax expense (benefit) | (1,679) | 6,210 |
Loss (income) from discontinued operations, net of tax | 245 | 188 |
Net income (loss) attributable to non-controlling interest | 1,513 | 1,084 |
Net income (loss) attributable to Masonite | $ 23,565 | $ 17,828 |
Fair Value of Financial Instr60
Fair Value of Financial Instruments (Details) - Senior Notes - Fair Value, Inputs, Level 2 - USD ($) $ in Millions | Apr. 02, 2017 | Jan. 01, 2017 |
Estimate of Fair Value Measurement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Estimated fair value of senior notes | $ 478.1 | $ 485.4 |
Reported Value Measurement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Estimated fair value of senior notes | $ 469.8 | $ 469.6 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Apr. 02, 2017 | Apr. 03, 2016 | |
Earnings Per Share [Abstract] | ||
Net income (loss) attributable to Masonite | $ 23,565 | $ 17,828 |
Less: income (loss) from discontinued operations, net of tax | (245) | (188) |
Income (loss) from continuing operations attributable to Masonite | $ 23,810 | $ 18,016 |
Shares used in computing basic earnings per share | 29,861,099 | 30,494,976 |
Effect of dilutive securities: | ||
Incremental shares issuable under share compensation plans and warrants | 593,889 | 876,980 |
Shares used in computing diluted earnings per share | 30,454,988 | 31,371,956 |
Basic earnings (loss) per common share attributable to Masonite: | ||
Continuing operations attributable to Masonite | $ 0.80 | $ 0.59 |
Discontinued operations attributable to Masonite, net of tax | (0.01) | (0.01) |
Total Basic earnings per common share attributable to Masonite | 0.79 | 0.58 |
Continuing operations attributable to Masonite | 0.78 | 0.57 |
Discontinued operations attributable to Masonite, net of tax | (0.01) | 0 |
Total Diluted earnings per common share attributable to Masonite | $ 0.77 | $ 0.57 |
Other Comprehensive Income an62
Other Comprehensive Income and Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Apr. 02, 2017 | Apr. 03, 2016 | Jan. 01, 2017 | |
Accumulated Foreign Currency Translation Gains (Losses) [Roll Forward] | |||
Accumulated foreign currency translation gains (losses), beginning of period | $ (127,433) | $ (90,111) | $ (90,111) |
Foreign currency translation gain (loss) | 5,730 | 3,872 | |
Income tax benefit (expense) on foreign currency translation gain (loss) | (643) | 0 | |
Less: foreign currency translation gain (loss) attributable to non-controlling interest | 104 | 487 | |
Accumulated foreign currency translation gains (losses), end of period | (122,450) | (86,726) | (127,433) |
Accumulated Amortization of Actuarial Net Losses [Roll Forward] | |||
Accumulated pension and other post-retirement adjustments, beginning of period | (21,553) | (17,837) | (17,837) |
Amortization of actuarial net losses | 292 | 242 | |
Income tax benefit (expense) on amortization of actuarial net losses | (114) | (96) | |
Accumulated pension and other post-retirement adjustments | (21,375) | (17,691) | (21,553) |
Accumulated other comprehensive income (loss) | (143,825) | (104,417) | (148,986) |
Other comprehensive income (loss), net of tax | 5,265 | 4,018 | $ (40,813) |
Less: other comprehensive income (loss) attributable to non-controlling interest | 104 | 487 | |
Other comprehensive income (loss) attributable to Masonite | $ 5,161 | $ 3,531 |
Variable Interest Entity (Detai
Variable Interest Entity (Details) - USD ($) $ in Thousands | Apr. 02, 2017 | Jan. 01, 2017 |
Variable Interest Entity [Line Items] | ||
Current assets | $ 582,601 | $ 578,737 |
Property, plant and equipment, net | 541,023 | 542,088 |
Long-term deferred income taxes | 9,917 | 9,478 |
Other assets, net | 19,641 | 16,816 |
Current liabilities | (220,446) | (231,178) |
Other long-term liabilities | (40,604) | (43,739) |
Net assets of the VIE consolidated by Masonite | (661,093) | (646,884) |
Variable Interest Entity, Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Current assets | 9,041 | 6,633 |
Property, plant and equipment, net | 13,228 | 13,673 |
Long-term deferred income taxes | 6,550 | 6,505 |
Other assets, net | 1,932 | 1,789 |
Current liabilities | (2,275) | (2,044) |
Other long-term liabilities | (2,143) | (2,115) |
Non-controlling interest | (5,260) | (4,664) |
Net assets of the VIE consolidated by Masonite | $ 21,073 | $ 19,777 |
Variable Interest Entity (Narra
Variable Interest Entity (Narrative) (Details) $ in Thousands | Apr. 02, 2017USD ($) | Jan. 01, 2017USD ($) | Apr. 03, 2016USD ($) | Jan. 03, 2016USD ($) |
Variable Interest Entity [Line Items] | ||||
Cash and cash equivalents | $ 34,473 | $ 71,714 | $ 49,982 | $ 89,187 |
Variable Interest Entity, Primary Beneficiary | ||||
Variable Interest Entity [Line Items] | ||||
Number of variable interest entities | 1 | 1 | ||
Cash and cash equivalents | $ 4,900 | $ 2,600 |