Document
Document - shares | 3 Months Ended | |
Apr. 01, 2018 | Apr. 30, 2018 | |
Entity [Abstract] | ||
Entity Registrant Name | MASONITE INTERNATIONAL CORPORATION | |
Entity Central Index Key | 893,691 | |
Current Fiscal Year End Date | --12-30 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Apr. 1, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 27,591,477 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2018 | Apr. 02, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Net sales | $ 517,879 | $ 487,181 |
Cost of goods sold | 412,450 | 391,624 |
Gross profit | 105,429 | 95,557 |
Selling, general and administration expenses | 68,211 | 65,110 |
Restructuring costs, net | 0 | 293 |
Operating income (loss) | 37,218 | 30,154 |
Interest expense (income), net | 8,756 | 7,024 |
Other expense (income), net | (272) | (514) |
Income (loss) from continuing operations before income tax expense (benefit) | 28,734 | 23,644 |
Income tax expense (benefit) | 6,701 | (1,679) |
Income (loss) from continuing operations | 22,033 | 25,323 |
Income (loss) from discontinued operations, net of tax | (250) | (245) |
Net income (loss) | 21,783 | 25,078 |
Less: net income (loss) attributable to non-controlling interest | 957 | 1,513 |
Net income (loss) attributable to Masonite | $ 20,826 | $ 23,565 |
Earnings (loss) per common share attributable to Masonite: | ||
Basic earnings per common share attributable to Masonite (in dollars per share) | $ 0.74 | $ 0.79 |
Diluted earnings per common share attributable to Masonite (in dollars per share) | 0.73 | 0.77 |
Earnings (loss) per common share from continuing operations attributable to Masonite: | ||
Basic (in dollars per share) | 0.75 | 0.80 |
Diluted (in dollars per share) | $ 0.74 | $ 0.78 |
Other comprehensive income (loss): | ||
Net income (loss) | $ 21,783 | $ 25,078 |
Foreign currency translation gain (loss) | 5,774 | 5,730 |
Amortization of actuarial net losses | 300 | 292 |
Income tax benefit (expense) related to other comprehensive income (loss) | (100) | (757) |
Other comprehensive income (loss), net of tax | 5,974 | 5,265 |
Comprehensive income (loss) | 27,757 | 30,343 |
Less: comprehensive income (loss) attributable to non-controlling interest | 714 | 1,617 |
Comprehensive income (loss) attributable to Masonite | $ 27,043 | $ 28,726 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Apr. 01, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 37,651 | $ 176,669 |
Restricted cash | 11,220 | 11,895 |
Accounts receivable, net | 296,306 | 269,235 |
Inventories, net | 241,414 | 234,042 |
Prepaid expenses | 29,032 | 27,665 |
Income taxes receivable | 1,859 | 2,364 |
Total current assets | 617,482 | 721,870 |
Property, plant and equipment, net | 585,225 | 573,559 |
Investment in equity investees | 11,621 | 11,310 |
Goodwill | 175,870 | 138,449 |
Intangible assets, net | 239,862 | 182,484 |
Long-term deferred income taxes | 27,715 | 29,899 |
Other assets, net | 25,789 | 22,687 |
Total assets | 1,683,564 | 1,680,258 |
Current liabilities: | ||
Accounts payable | 110,956 | 94,497 |
Accrued expenses | 114,454 | 126,759 |
Income taxes payable | 1,790 | 869 |
Total current liabilities | 227,200 | 222,125 |
Long-term debt | 625,694 | 625,657 |
Long-term deferred income taxes | 75,682 | 60,820 |
Other liabilities | 35,415 | 35,754 |
Total liabilities | 963,991 | 944,356 |
Commitments and Contingencies (Note 9) | ||
Equity: | ||
Share capital: unlimited shares authorized, no par value, 27,851,728 and 28,369,877 shares issued and outstanding as of April 1, 2018, and December 31, 2017, respectively | 619,554 | 624,403 |
Additional paid-in capital | 217,228 | 226,528 |
Accumulated deficit | (26,286) | (18,150) |
Accumulated other comprehensive income (loss) | (103,935) | (110,152) |
Total equity attributable to Masonite | 706,561 | 722,629 |
Equity attributable to non-controlling interests | 13,012 | 13,273 |
Total equity | 719,573 | 735,902 |
Total liabilities and equity | $ 1,683,564 | $ 1,680,258 |
Condensed Consolidated Balance4
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - shares | Apr. 01, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Shares issued | 27,851,728 | 28,369,877 |
Shares outstanding | 27,851,728 | 28,369,877 |
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. 01, 2017 | 29,774,784 | ||||||
Opening 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) | 156,981 | 151,739 | 151,739 | 5,242 | |||
Other comprehensive income (loss), net of tax | 39,586 | 38,834 | 38,834 | 752 | |||
Dividends to non-controlling interests | (5,613) | 0 | (5,613) | ||||
Share based compensation expense | 11,644 | 11,644 | 11,644 | ||||
Common shares issued for delivery of share based awards, Shares | 372,826 | ||||||
Common shares issued for delivery of share based awards, Value | 0 | $ 12,290 | (12,290) | 0 | |||
Common shares withheld to cover income taxes payable due to delivery of share based awards | (7,466) | (7,466) | (7,466) | ||||
Common shares issued under employee stock purchase plan | 16,368 | ||||||
Common shares issued under employee stock purchase plan, value | 882 | $ 1,168 | (286) | 882 | |||
Common shares repurchased and retired, Shares | (1,794,101) | ||||||
Common shares repurchased and retired, Value | $ (119,888) | $ (39,062) | (80,826) | (119,888) | |||
Ending Balance, Shares at Dec. 31, 2017 | 28,369,877 | 28,369,877 | |||||
Ending Balance, Value at Dec. 31, 2017 | $ 735,902 | $ 624,403 | 226,528 | (18,150) | (110,152) | 722,629 | 13,273 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 21,783 | 20,826 | 20,826 | 957 | |||
Other comprehensive income (loss), net of tax | 5,974 | 6,217 | 6,217 | (243) | |||
Dividends to non-controlling interests | (975) | 0 | (975) | ||||
Share based compensation expense | 3,065 | 3,065 | 3,065 | ||||
Common shares issued for delivery of share based awards, Shares | 166,248 | ||||||
Common shares issued for delivery of share based awards, Value | 0 | $ 9,864 | (9,864) | 0 | |||
Common shares withheld to cover income taxes payable due to delivery of share based awards | (2,422) | (2,422) | (2,422) | ||||
Common shares issued under employee stock purchase plan | 7,386 | ||||||
Common shares issued under employee stock purchase plan, value | 437 | $ 516 | (79) | 437 | |||
Common shares repurchased and retired, Shares | (691,783) | ||||||
Common shares repurchased and retired, Value | $ (44,191) | $ (15,229) | (28,962) | (44,191) | |||
Ending Balance, Shares at Apr. 01, 2018 | 27,851,728 | 27,851,728 | |||||
Ending Balance, Value at Apr. 01, 2018 | $ 719,573 | $ 619,554 | $ 217,228 | $ (26,286) | $ (103,935) | $ 706,561 | $ 13,012 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2018 | Apr. 02, 2017 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 21,783 | $ 25,078 |
Adjustments to reconcile net income (loss) to net cash flow provided by (used in) operating activities: | ||
Loss (income) from discontinued operations, net of tax | 250 | 245 |
Depreciation | 13,934 | 14,024 |
Amortization | 6,585 | 5,970 |
Share based compensation expense | 3,065 | 2,427 |
Deferred income taxes | 3,619 | (1,048) |
Unrealized foreign exchange loss (gain) | 692 | 266 |
Share of loss (income) from equity investees, net of tax | (311) | (297) |
Pension and post-retirement expense (funding), net | (1,424) | (1,651) |
Non-cash accruals and interest | 382 | 456 |
Loss (gain) on sale of property, plant and equipment | 612 | (274) |
Accounts receivable | (16,629) | (29,226) |
Inventories | (1,644) | (10,613) |
Prepaid expenses | (176) | 1,020 |
Accounts payable and accrued expenses | (1,969) | (4,334) |
Other assets and liabilities | (1,576) | (4,577) |
Net cash flow provided by (used in) operating activities | 27,193 | (2,534) |
Cash flows from investing activities: | ||
Proceeds from sale of property, plant and equipment | 0 | 396 |
Additions to property, plant and equipment | (21,801) | (14,668) |
Cash used in acquisitions, net of cash acquired | (96,309) | 0 |
Other investing activities | (862) | (1,008) |
Net cash flow provided by (used in) investing activities | (118,972) | (15,280) |
Cash flows from financing activities: | ||
Proceeds from issuance of long-term debt | 0 | 423 |
Repayments of long-term debt | (102) | (141) |
Tax witholding on share based awards | (2,422) | (6,167) |
Distributions to non-controlling interests | (975) | 0 |
Repurchases of common shares | (44,191) | (11,252) |
Net cash flow provided by (used in) financing activities | (47,690) | (17,137) |
Net foreign currency translation adjustment on cash | (224) | (2,276) |
Increase (decrease) in cash, cash equivalents and restricted cash | (139,693) | (37,227) |
Cash, cash equivalents and restricted cash, beginning of period | 188,564 | 83,910 |
Cash, cash equivalents and restricted cash, at end of period | $ 48,871 | $ 46,683 |
Business Overview and Significa
Business Overview and Significant Accounting Policies | 3 Months Ended |
Apr. 01, 2018 | |
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 December 31, 2017, as filed with the SEC. 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. Certain prior year amounts have been reclassified to conform to the current basis of presentation, related to Accounting Standards Updates ("ASU") 2017-07 and 2016-18, as described below. Changes in Accounting Standards and Policies There have been no changes in the significant accounting policies from those that were disclosed in the fiscal year 2017 audited consolidated financial statements, other than as noted below. Adoption of Recent Accounting Pronouncements In March 2017, the Financial Accounting Standards Board ("FASB") issued ASU 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost,” which amended Accounting Standards Codification ("ASC") 715, “Retirement Benefits”. This ASU required 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 was effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years; early adoption was permitted and retrospective application was required. We have utilized the practical expedient allowing the use of the prior years' disclosed service cost and other cost as the basis for our retrospective changes in presentation. The adoption of this standard changed the presentation of the other components of net benefit cost in our condensed consolidated statements of comprehensive income (loss), requiring the reclassification of a $0.3 million benefit related to other components of net benefit cost out of previously-presented selling, general and administration expense and into previously presented other expense (income), net, for the three months ended April 2, 2017. The effect of this reclassification reduced previously-presented operating income by this amount for the same period. The total benefit which will be reclassified for the years ended December 31, 2017, and January 1, 2017, will be $1.1 million and $0.5 million , respectively. In November 2016, the FASB issued ASU 2016-18, "Restricted Cash Flows", which amended ASC 230 "Statement of Cash Flows". This ASU clarified how entities should present restricted cash and restricted cash equivalents in the statement of cash flows. The new guidance requires entities to show the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flows. As a result, entities no longer present transfers between cash and cash equivalents and restricted cash and restricted cash equivalents in the statement of cash flows. This ASU was effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods; early adoption was permitted and retrospective application was required. The adoption of this standard changed the presentation of restricted cash in our condensed consolidated statements of cash flows, which is now being combined with cash and cash equivalents, and had the effect of an immaterial decrease to previously-presented cash flow used in investing activities for the three months ended April 2, 2017. In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers," which created ASC 606, "Revenue from Contracts with Customers," and largely superseded the existing guidance of ASC 605, "Revenue Recognition." This standard outlined a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and superseded 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 would now be effective for annual and interim periods beginning on or after December 15, 2017. We have adopted the guidance of ASC 606 as of January 1, 2018, using the modified retrospective method and have applied the standard to only those contracts which were not completed as of the transition date. The adoption of this standard did not have any material impact on revenues in the three months ended April 1, 2018. Prior period amounts were not adjusted and have continued to be reported in accordance with our historic accounting under Topic 605. While we considered an adjustment to opening retained earnings as prescribed by the modified retrospective method, there was no material adjustment ultimately required. Furthermore, there was no material difference between the prior period amounts as reported under ASC 605 and such amounts as would have been reported under ASC 606. Information about the nature, amount and timing of our revenues from contracts with customers is disclosed in Note 10. Revenues. Our accounting policy for revenue recognition is set forth below. Revenue Recognition Revenue from the sale of products is recognized when control of the promised goods is transferred to our customers based on the agreed-upon shipping terms, in an amount that reflects the consideration to which we expect to be entitled in exchange for those goods or services. Volume rebates, expected returns, discounts and other incentives to customers are considered variable consideration and we estimate these amounts based on the expected amount to be provided to customers and reduce the revenues we recognize accordingly. Sales taxes and value added taxes assessed by governmental entities are excluded from the measurement of consideration expected to be received. Shipping and handling costs incurred after a customer has taken possession of our goods are treated as a fulfillment cost and are not considered a separate performance obligation. Shipping and other transportation costs charged to customers are recorded in both revenues and cost of goods sold in the condensed consolidated statements of comprehensive income (loss). Other Recent Accounting Pronouncements not yet Adopted In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)", which will replace the existing guidance in ASC 840, "Leases." The updated standard aims to increase transparency and comparability among organizations by requiring lessees to recognize lease assets and lease liabilities on the balance sheet and requiring disclosure of key information about leasing arrangements. This ASU is effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods; early adoption is permitted and modified retrospective application is required. While we are currently assessing the impact that ASU 2016-02 will have on our consolidated financial statements, we anticipate that the primary impact upon adoption will be to our consolidated balance sheets from the recognition, on a discounted basis, of our minimum commitments under non-cancelable operating leases, resulting in the recognition of right to use assets and lease obligations. Our current minimum undiscounted lease commitments under non-cancelable operating leases are disclosed in Note 9. Commitments and Contingencies. |
Acquisitions
Acquisitions | 3 Months Ended |
Apr. 01, 2018 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions 2018 Acquisition On January 29, 2018, we completed the acquisition of DW3 Products Holdings Limited (“DW3”), a leading UK provider of high quality premium door solutions and window systems, supplying products under brand names such as Solidor, Residor, Nicedor and Residence. We acquired 100% of the equity interests in DW3 for cash consideration of $96.3 million , net of cash acquired. DW3 is based in Stoke-on-Trent and Gloucester, England, and their products and service model are a natural addition to our existing UK business. DW3’s online quick ship capabilities and product portfolio both complement and expand the strategies we are pursuing with our business. The excess purchase price over the fair value of net assets acquired of $36.5 million was allocated to goodwill. The goodwill principally represents anticipated synergies to be gained from the integration into our existing United Kingdom business. This goodwill is not deductible for tax purposes and relates to the Europe segment. The fair value of assets acquired and liabilities assumed in the DW3 acquisition are as follows: (In thousands) DW3 Accounts receivable $ 8,590 Inventory 5,059 Property, plant and equipment 8,196 Goodwill 36,503 Intangible assets 60,743 Accounts payable and accrued expenses (10,418 ) Deferred income taxes (12,296 ) Other assets and liabilities, net (68 ) Cash consideration, net of cash acquired $ 96,309 The fair values of tangible assets acquired and liabilities assumed from the DW3 acquisition were based upon preliminary calculations and valuations and the estimates and assumptions are subject to change as we obtain additional information during the measurement period (up to one year from the acquisition date). The primary areas of the preliminary estimate which are not yet finalized relate to customer relationships, income tax liabilities and goodwill. The gross contractual value of acquired trade receivables was $9.1 million for the DW3 acquisition. The fair values of intangible assets acquired are based on management's estimates and assumptions including variations of the income approach, the cost approach and the market approach. The intangible assets acquired are not expected to have any residual value. Intangible assets acquired from the DW3 acquisition consist of the following: Fair Value (in thousands) Expected Useful Life (Years) Customer relationships $ 47,282 10.0 Trademarks and trade names 12,069 10.0 Patents 1,278 10.0 Other 114 3.0 Total intangible assets acquired $ 60,743 The following schedule represents the amounts of net sales and net income (loss) attributable to Masonite from the DW3 acquisition which have been included in the consolidated statements of comprehensive income (loss) for the periods indicated subsequent to the acquisition date. Three Months Ended April 1, 2018 (In thousands) Net sales $ 11,198 Net income (loss) attributable to Masonite 948 2017 Acquisition On October 2, 2017, we completed the acquisition of A&F Wood Products, Inc. (“A&F”), through the purchase of 100% of the equity interests in A&F and certain assets of affiliates of A&F for cash consideration of $13.8 million , net of cash acquired. A&F is based in Howell, Michigan, and is a wholesaler and fabricator of architectural and commercial doors in the Midwest United States. The excess purchase price over the fair value of net assets acquired of $5.9 million was allocated to goodwill. The goodwill principally represents anticipated synergies from A&F's integration into our existing Architectural door business. This goodwill is not deductible for tax purposes and relates to the Architectural segment. The aggregate consideration paid for the A&F acquisition was as follows: (In thousands) A&F Accounts receivable $ 2,169 Inventory 1,230 Property, plant and equipment 2,716 Goodwill 5,895 Intangible assets 4,400 Accounts payable and accrued expenses (694 ) Other assets and liabilities, net (1,903 ) Cash consideration, net of cash acquired $ 13,813 The fair values of intangible assets acquired are based on management’s estimates and assumptions including variations of the income approach. The intangible asset acquired from A&F consists solely of customer relationships and is being amortized over the weighted average amortization period of 10.0 years. The intangible asset is not expected to have any residual value. The gross contractual value of acquired trade receivables was $2.2 million for the A&F acquisition. Pro Forma Information The following unaudited pro forma financial information represents the consolidated financial information as if the acquisitions had been included in our consolidated results beginning on the first day of the fiscal year prior to their respective acquisition dates. The pro forma results have been calculated after adjusting the results of the acquired entities to remove intercompany transactions and transaction costs incurred and to reflect the additional depreciation and amortization that would have been charged assuming the fair value adjustments to property, plant and equipment and intangible assets had been applied on the first day of the fiscal year prior to the respective acquisitions, together with the consequential tax effects. The pro forma results do not reflect any cost savings, operating synergies or revenue enhancements that the combined company may achieve as a result of the acquisitions; the costs to combine the companies' operations; or the costs necessary to achieve these costs savings, operating synergies and revenue enhancements. The pro forma results do not necessarily reflect the actual results of operations of the combined companies' under our ownership and operation. Three Months Ended April 1, 2018 (In thousands, except per share amounts) Masonite DW3 Pro Forma Net sales $ 517,879 $ 4,918 $ 522,797 Net income (loss) attributable to Masonite 20,826 81 20,907 Basic earnings (loss) per common share $ 0.74 $ 0.74 Diluted earnings (loss) per common share 0.73 0.73 Three Months Ended April 2, 2017 (In thousands, except per share amounts) Masonite DW3 A&F Historical Sales to A&F Pro Forma Net sales $ 487,181 $ 12,694 $ 3,140 $ (381 ) $ 502,634 Net income (loss) attributable to Masonite 23,565 (133 ) 193 (14 ) 23,611 Basic earnings (loss) per common share $ 0.79 $ 0.79 Diluted earnings (loss) per common share 0.77 0.78 |
Accounts Receivable
Accounts Receivable | 3 Months Ended |
Apr. 01, 2018 | |
Receivables [Abstract] | |
Accounts Receivable | Accounts Receivable Our customers consist mainly of wholesale distributors, dealers, homebuilders and retail home centers. Our ten largest customers accounted for 55.2% and 56.2% of total accounts receivable as of April 1, 2018 , and December 31, 2017 , respectively. Our largest customer, The Home Depot, Inc., accounted for more than 10% of the consolidated gross accounts receivable balance as of April 1, 2018 , and December 31, 2017 . Our second largest customer, Lowe's Co. Inc., accounted for more than 10% of the consolidated gross accounts receivable balance as of December 31, 2017 . The allowance for doubtful accounts balance was $2.1 million and $1.8 million as of April 1, 2018 , and December 31, 2017 , respectively. We maintain an accounts receivable sales program with a third party (the "AR Sales Program"). Under the AR Sales Program, we can transfer ownership of eligible trade accounts receivable of certain customers. Receivables are sold outright to a third party that assumes the full risk of collection, without recourse to us in the event of a loss. Transfers of receivables under this program 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 Program 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 Program 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. 01, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories The amounts of inventory on hand were as follows as of the dates indicated: (In thousands) April 1, December 31, Raw materials $ 170,814 $ 172,960 Finished goods 78,908 68,851 Provision for obsolete or aged inventory (8,308 ) (7,769 ) Inventories, net $ 241,414 $ 234,042 |
Property, Plant and Equipment
Property, Plant and Equipment | 3 Months Ended |
Apr. 01, 2018 | |
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 1, December 31, Land $ 26,883 $ 26,790 Buildings 177,651 176,077 Machinery and equipment 681,899 661,026 Property, plant and equipment, gross 886,433 863,893 Accumulated depreciation (301,208 ) (290,334 ) Property, plant and equipment, net $ 585,225 $ 573,559 Total depreciation expense was $13.9 million and $14.0 million in the three months ended April 1, 2018 , and April 2, 2017 , respectively. Depreciation expense is included primarily within cost of goods sold in the condensed consolidated statements of comprehensive income (loss). |
Goodwill and Intangbile Assets
Goodwill and Intangbile Assets | 3 Months Ended |
Apr. 01, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Changes in the carrying amount of goodwill were as follows as of the dates indicated: (In thousands) North American Residential Europe Architectural Total December 31, 2017 $ 2,867 $ 35,431 $ 100,151 $ 138,449 Goodwill from 2018 acquisitions — 36,503 — 36,503 Foreign exchange fluctuations (8 ) 1,000 (74 ) 918 April 1, 2018 $ 2,859 $ 72,934 $ 100,077 $ 175,870 The cost and accumulated amortization values of our intangible assets were as follows as of the dates indicated: April 1, 2018 (In thousands) Cost Accumulated Amortization Translation Adjustment Net Book Value Definite life intangible assets: Customer relationships $ 207,610 $ (84,258 ) $ (10,212 ) $ 113,140 Patents 33,560 (22,277 ) (711 ) 10,572 Software 34,149 (31,477 ) (192 ) 2,480 Trademarks and tradenames 15,089 (2,306 ) (128 ) 12,655 Other 12,340 (10,186 ) (1,762 ) 392 Total definite life intangible assets 302,748 (150,504 ) (13,005 ) 139,239 Indefinite life intangible assets: Trademarks and tradenames 108,572 — (7,949 ) 100,623 Total intangible assets $ 411,320 $ (150,504 ) $ (20,954 ) $ 239,862 December 31, 2017 (In thousands) Cost Accumulated Amortization Translation Adjustment Net Book Value Definite life intangible assets: Customer relationships $ 160,327 $ (79,628 ) $ (11,338 ) $ 69,361 Patents 31,999 (21,768 ) (686 ) 9,545 Software 33,574 (31,183 ) (190 ) 2,201 Other 15,246 (11,836 ) (1,781 ) 1,629 Total definite life intangible assets 241,146 (144,415 ) (13,995 ) 82,736 Indefinite life intangible assets: Trademarks and tradenames 108,572 — (8,824 ) 99,748 Total intangible assets $ 349,718 $ (144,415 ) $ (22,819 ) $ 182,484 Amortization of intangible assets was $6.1 million and $5.9 million for the three months ended April 1, 2018 , and April 2, 2017 , 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 1, 2018 , is as follows: (In thousands) Fiscal year: 2018 (remaining nine months) $ 20,254 2019 24,603 2020 20,543 2021 17,309 2022 13,832 |
Accrued Expenses (Notes)
Accrued Expenses (Notes) | 3 Months Ended |
Apr. 01, 2018 | |
Accrued Expenses [Abstract] | |
Accrued expenses | Accrued Expenses The details of our accrued expenses were as follows as of the dates indicated: (In thousands) April 1, December 31, Accrued payroll $ 38,384 $ 38,296 Accrued rebates 29,579 34,488 Accrued interest 2,328 10,688 Other accruals 44,163 43,287 Total accrued expenses $ 114,454 $ 126,759 |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Apr. 01, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt (In thousands) April 1, December 31, 5.625% senior unsecured notes due 2023 $ 625,000 $ 625,000 Unamortized premium on 2023 Notes 5,441 5,714 Debt issuance costs for 2023 Notes (6,203 ) (6,635 ) Capital lease obligations 286 378 Other long-term debt 1,170 1,200 Total long-term debt $ 625,694 $ 625,657 Interest expense related to our consolidated indebtedness under senior unsecured notes was $8.7 million and $6.9 million for the three months ended April 1, 2018 , and April 2, 2017 , respectively. 5.625% Senior Notes due 2023 On September 27, 2017, and March 23, 2015, we issued $150.0 million and $475.0 million aggregate principal senior unsecured notes, respectively (the "2023 Notes"). The 2023 Notes were issued in two private placements 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 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. The 2023 Notes were issued at 104.0% and par in 2017 and 2015, respectively, and the resulting premium of $6.0 million is being amortized to interest expense over the term of the 2023 Notes using the effective interest method. We received net proceeds of $153.9 million and $467.9 million , respectively, after deducting $2.1 million and $7.1 million of debt issuance costs in 2017 and 2015, respectively. 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 2017 issuance of the 2023 Notes are for general corporate purposes. The net proceeds from the 2015 issuance of 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. 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. We may 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. 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 1, 2018 , and December 31, 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 certain of the current assets of Masonite's United States and Canadian 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 1, 2018 , and December 31, 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. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Apr. 01, 2018 | |
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: 2018 (remaining nine months) $ 17,688 2019 22,488 2020 19,767 2021 15,089 2022 10,829 Thereafter 66,303 Total future minimum lease payments $ 152,164 Total rent expense, including non-cancelable operating leases and month-to-month leases, was $7.7 million and $7.1 million for the three months ended April 1, 2018 , and April 2, 2017 , 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 The following discussion describes material developments in previously disclosed legal proceedings that occurred since December 31, 2017. Refer to Note 9. Commitments and Contingencies in the consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2017, for a full description of these pending legal proceedings. Mathis In the Mathis matter, on March 29, 2018, and before any responsive pleadings were filed, the parties entered into a Settlement Agreement and General Release pursuant to which we made a nominal settlement payment in exchange for a general release and the lawsuit was dismissed with prejudice on April 23, 2018. In entering into the settlement, we denied all claims made in the lawsuit and denied any wrongdoing. Byrd In the Byrd matter, the settlement previously agreed to by the parties received final court approval on March 22, 2018, and payment of the settlement occurred on April 27, 2018. On March 22, 2018, the court dismissed the case but the processing of the class member payouts is not yet finished. The court can reassert jurisdiction to enforce the settlement until the payout process ends. The amount we paid as part of the settlement did not have a material impact on our financial condition or operating results. 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. |
Revenues (Notes)
Revenues (Notes) | 3 Months Ended |
Apr. 01, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues We derive our revenues primarily from the manufacture and delivery of doors and door components as performance obligations that arise from our contracts with customers are satisfied. Materially all of our revenues are generated from contracts with customers and the nature, timing and any uncertainty in the recognition of revenues are not affected by the type of good, customer or geographical region to which the performance obligation relates. Our contracts with our customers are generally in the form of purchase orders and the performance obligation arises upon receipt of the purchase order and agreement upon the transaction price. The performance obligations are satisfied at a point in time when control of the promised goods is transferred to the customer and payment terms vary from customer to customer. Payment terms are short-term, are customary for our industry and in some cases, early payment incentives are offered. The transaction price recognized as revenue and accounts receivable is determined based upon a number of estimates, including: • Incentive-based volume rebates, which are based on individual rebate agreements with our customers, as well as historical and expected performance of each individual customer, • Estimated sales returns, which are based on historical returns as a percentage of revenues, and • Adjustments for early payment discounts offered by us. Contract assets are represented by our trade accounts receivable balances on the condensed consolidated balance sheets, and are described in Note 3. Accounts Receivable. There were no other material contract assets or liabilities as of either April 1, 2018, or December 31, 2017. Our warranties are assurance-type warranties and do not represent separate performance obligations to our customers. There were no material impairment losses related to contract assets during the three months ended April 1, 2018, or April 2, 2017. |
Share Based Compensation Plans
Share Based Compensation Plans | 3 Months Ended |
Apr. 01, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share Based Compensation Plans | Share Based Compensation Plans Share based compensation expense was $3.1 million and $2.4 million for the three months ended April 1, 2018 , and April 2, 2017 , respectively. As of April 1, 2018 , the total remaining unrecognized compensation expense related to share based compensation amounted to $22.3 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 1, 2018 , there were 753,136 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 1, 2018 , the liability and asset relating to deferred compensation each had a fair value of $6.2 million . Any unfunded gain or loss relating to changes in the fair value of the deferred compensation liability is recognized in selling, general and administration expense in the condensed consolidated statements of comprehensive income (loss). As of April 1, 2018 , 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 $0.7 million and $0.4 million during the three months ended April 1, 2018 , and April 2, 2017 , respectively. Three Months Ended April 1, 2018 Stock Appreciation Rights Aggregate Intrinsic Value (in thousands) Weighted Average Exercise Price Average Remaining Contractual Life (Years) Outstanding, beginning of period 537,930 $ 23,263 $ 32.00 4.5 Granted 69,752 65.00 Exercised (17,174 ) 848 20.98 Outstanding, end of period 590,508 $ 15,895 $ 36.22 5.0 Exercisable, end of period 467,623 $ 15,834 $ 28.11 3.8 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 The value of SARs granted in the three months ended April 1, 2018 , 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: 2018 Grants 2017 Grants SAR value (model conclusion) $ 18.63 $ 22.65 Risk-free rate 2.7 % 2.0 % Expected dividend yield 0.0 % 0.0 % Expected volatility 22.8 % 25.8 % 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 1, 2018 April 2, 2017 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 417,598 $ 66.14 501,926 $ 58.51 Granted 252,740 62.74 226,808 70.60 Delivered (152,743 ) (176,077 ) Withheld to cover (1) (41,557 ) (54,614 ) Forfeited (6,211 ) (30,664 ) Outstanding, end of period 469,827 $ 65.70 467,379 $ 65.72 ____________ (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 1, 2018 , 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 1, 2018 , was $15.9 million and is being recognized over the weighted average requisite service period of 2.7 years. During the three months ended April 1, 2018 , there were 194,300 RSUs vested at a fair value of $12.4 million . |
Restructuring Costs
Restructuring Costs | 3 Months Ended |
Apr. 01, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Costs | Restructuring Costs Restructuring costs were not material in the three months ended April 1, 2018 , or April 2, 2017 . Cumulative Amount Incurred Through April 1, 2018 (In thousands) North American Residential Europe Architectural Corporate & Other Total 2016 Plan $ — $ — $ 3,707 $ — $ 3,707 2015 Plan — 2,335 — 3,274 5,609 2014 Plan — — — 7,993 7,993 2013 Plan 3,025 2,733 — 2,157 7,915 2012 and Prior Plans 2,378 12,668 — 3,609 18,655 Total Restructuring Costs $ 5,403 $ 17,736 $ 3,707 $ 17,033 $ 43,879 Our restructuring plans initiated in 2016 and prior years are described in detail in our Annual Report on Form 10-K for the year ended December 31, 2017. Costs associated with our existing restructuring plans include severance and closure charges and are substantially completed. The 2013 Plan also included impairment of certain property, plant and equipment. Actions associated with all of our existing restructuring plans are substantially completed, although cash payments are expected to continue through 2019, primarily related to lease payments at closed facilities under our restructuring plans initiated in 2012 and prior years. As of April 1, 2018 , we do not expect to incur any material future charges relating to any of our existing restructuring plans. The changes in the accrual for restructuring by activity were as follows for the periods indicated: (In thousands) December 31, Cash Payments April 1, 2016 Plan $ 90 $ 90 $ — 2012 and Prior Plans 194 43 151 Total $ 284 $ 133 $ 151 (In thousands) January 1, Severance Cash Payments April 2, 2015 Plan $ 1,300 $ 271 $ 367 $ 1,204 2014 Plan 282 22 76 228 2013 Plan 426 — — 426 2012 and Prior Plans 465 — 27 438 Total $ 2,473 $ 293 $ 470 $ 2,296 |
Income Taxes
Income Taxes | 3 Months Ended |
Apr. 01, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The effective tax rate differs from the Canadian statutory rate of 26.5% 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 $0.2 million of income tax benefit due to the exercise and delivery of share-based awards during the three months ended April 1, 2018 , and $5.0 million during the three months ended April 2, 2017 . In accordance with SAB 118, we have reflected the income tax effects of the aspects of the Tax Cuts and Jobs Act of 2017 ("Tax Reform") for which the accounting under ASC 740 is complete. Our provision for income taxes does include estimates around the timing of certain deductions. To the extent those estimates change, there could be effects to income tax expense due to the change in the tax rate. We would expect to be complete with this analysis upon filing of our tax return in 2018. Additionally, the final impact of Tax Reform may differ from our estimates due to additional regulations that may be issued or changes in interpretations as we gain a more thorough understanding of the tax law. These changes could be material to income tax expense. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Apr. 01, 2018 | |
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 and SARs outstanding during the period. (In thousands, except share and per share information) Three Months Ended April 1, 2018 April 2, 2017 Net income (loss) attributable to Masonite $ 20,826 $ 23,565 Less: income (loss) from discontinued operations, net of tax (250 ) (245 ) Income (loss) from continuing operations attributable to Masonite $ 21,076 $ 23,810 Shares used in computing basic earnings per share 28,189,790 29,861,099 Effect of dilutive securities: Incremental shares issuable under share compensation plans and warrants 482,472 593,889 Shares used in computing diluted earnings per share 28,672,262 30,454,988 Basic earnings (loss) per common share attributable to Masonite: Continuing operations attributable to Masonite $ 0.75 $ 0.80 Discontinued operations attributable to Masonite, net of tax (0.01 ) (0.01 ) Total Basic earnings per common share attributable to Masonite $ 0.74 $ 0.79 Diluted earnings (loss) per common share attributable to Masonite: Continuing operations attributable to Masonite $ 0.74 $ 0.78 Discontinued operations attributable to Masonite, net of tax (0.01 ) (0.01 ) Total Diluted earnings per common share attributable to Masonite $ 0.73 $ 0.77 Anti-dilutive instruments excluded from diluted earnings per common share: Stock appreciation rights 51,129 — The weighted average number of shares outstanding utilized for the diluted EPS calculation contemplates the exercise of all currently outstanding SARs and the conversion of all RSUs. The dilutive effect of such equity awards is calculated based on the weighted average share price for each fiscal period using the treasury stock method. For the three months ended April 1, 2018, common shares issuable for stock appreciation rights which have a higher strike price than our weighted average market price have been excluded from the computation of diluted earnings per share, as their effect would have been anti-dilutive. |
Segment Information
Segment Information | 3 Months Ended |
Apr. 01, 2018 | |
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 1, 2018 (In thousands) North American Residential Europe Architectural Corporate & Other Total Net sales $ 360,542 $ 87,752 $ 71,564 $ 4,424 $ 524,282 Intersegment sales (862 ) (648 ) (4,893 ) — (6,403 ) Net sales to external customers $ 359,680 $ 87,104 $ 66,671 $ 4,424 $ 517,879 Adjusted EBITDA $ 50,398 $ 9,930 $ 7,660 $ (6,574 ) $ 61,414 (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 $ 7,738 $ 5,214 $ (5,295 ) $ 52,594 As fully described in Note 1. Business Overview and Significant Accounting Policies, the adoption of ASU 2017-07 required a reclassification of prior periods' other expense (income), net. This resulted in a consolidated decrease of $0.3 million to Adjusted EBITDA for the three months ended April 2, 2017, compared to the same figure previously presented. On a segment basis, Adjusted EBITDA for the three months ended April 2, 2017, was increased by $0.1 million in the Europe segment and was decreased in the Corporate & Other category by $0.3 million , compared to the same figures previously-presented. 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 1, 2018 April 2, 2017 Adjusted EBITDA $ 61,414 $ 52,594 Less (plus): Depreciation 13,934 14,024 Amortization 6,585 5,970 Share based compensation expense 3,065 2,427 Loss (gain) on disposal of property, plant and equipment 612 (274 ) Restructuring costs — 293 Interest expense (income), net 8,756 7,024 Other expense (income), net (272 ) (514 ) Income tax expense (benefit) 6,701 (1,679 ) Loss (income) from discontinued operations, net of tax 250 245 Net income (loss) attributable to non-controlling interest 957 1,513 Net income (loss) attributable to Masonite $ 20,826 $ 23,565 |
Other Comprehensive Income and
Other Comprehensive Income and Accumulated Other Comprehensive Income | 3 Months Ended |
Apr. 01, 2018 | |
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 1, 2018 April 2, 2017 Accumulated foreign currency translation gains (losses), beginning of period $ (89,824 ) $ (127,433 ) Foreign currency translation gain (loss) 5,774 5,730 Income tax benefit (expense) on foreign currency translation gain (loss) (22 ) (643 ) Less: foreign currency translation gain (loss) attributable to non-controlling interest (243 ) 104 Accumulated foreign currency translation gains (losses), end of period (83,829 ) (122,450 ) Accumulated pension and other post-retirement adjustments, beginning of period (20,328 ) (21,553 ) Amortization of actuarial net losses 300 292 Income tax benefit (expense) on amortization of actuarial net losses (78 ) (114 ) Accumulated pension and other post-retirement adjustments (20,106 ) (21,375 ) Accumulated other comprehensive income (loss) $ (103,935 ) $ (143,825 ) Other comprehensive income (loss), net of tax $ 5,974 $ 5,265 Less: other comprehensive income (loss) attributable to non-controlling interest (243 ) 104 Other comprehensive income (loss) attributable to Masonite $ 6,217 $ 5,161 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). |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 3 Months Ended |
Apr. 01, 2018 | |
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 1, 2018 April 2, 2017 Transactions involving cash: Interest paid $ 17,337 $ 13,592 Interest received 400 54 Income taxes paid 1,583 2,763 Income tax refunds 70 13 Non-cash transactions: Property, plant and equipment additions in accounts payable 2,949 3,984 The following reconciles total cash, cash equivalents and restricted cash as of the dates indicated: April 1, 2018 December 31, 2017 Cash and cash equivalents $ 37,651 $ 176,669 Restricted cash 11,220 11,895 Total cash, cash equivalents and restricted cash $ 48,871 $ 188,564 |
Variable Interest Entity
Variable Interest Entity | 3 Months Ended |
Apr. 01, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entity | Variable Interest Entity As of April 1, 2018 , and December 31, 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 1, December 31, Current assets $ 9,075 $ 7,213 Property, plant and equipment, net 10,731 11,344 Long-term deferred income taxes 6,550 5,472 Other assets, net 3,442 3,386 Current liabilities (2,419 ) (2,326 ) Other long-term liabilities (1,782 ) (1,699 ) Non-controlling interest (4,015 ) (4,029 ) Net assets of the VIE consolidated by Masonite $ 21,582 $ 19,361 Current assets include $4.7 million and $3.2 million of cash and cash equivalents as of April 1, 2018 , and December 31, 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. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Apr. 01, 2018 | |
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 1, 2018 , was $642.5 million , compared to a carrying value of $624.2 million , and the estimated fair value of the 2023 Notes as of December 31, 2017 , was $653.6 million , compared to a carrying value of $624.1 million . 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. |
Business Overview and Signifi26
Business Overview and Significant Accounting Policies (Policies) | 3 Months Ended |
Apr. 01, 2018 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements | Adoption of Recent Accounting Pronouncements In March 2017, the Financial Accounting Standards Board ("FASB") issued ASU 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost,” which amended Accounting Standards Codification ("ASC") 715, “Retirement Benefits”. This ASU required 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 was effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years; early adoption was permitted and retrospective application was required. We have utilized the practical expedient allowing the use of the prior years' disclosed service cost and other cost as the basis for our retrospective changes in presentation. The adoption of this standard changed the presentation of the other components of net benefit cost in our condensed consolidated statements of comprehensive income (loss), requiring the reclassification of a $0.3 million benefit related to other components of net benefit cost out of previously-presented selling, general and administration expense and into previously presented other expense (income), net, for the three months ended April 2, 2017. The effect of this reclassification reduced previously-presented operating income by this amount for the same period. The total benefit which will be reclassified for the years ended December 31, 2017, and January 1, 2017, will be $1.1 million and $0.5 million , respectively. In November 2016, the FASB issued ASU 2016-18, "Restricted Cash Flows", which amended ASC 230 "Statement of Cash Flows". This ASU clarified how entities should present restricted cash and restricted cash equivalents in the statement of cash flows. The new guidance requires entities to show the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flows. As a result, entities no longer present transfers between cash and cash equivalents and restricted cash and restricted cash equivalents in the statement of cash flows. This ASU was effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods; early adoption was permitted and retrospective application was required. The adoption of this standard changed the presentation of restricted cash in our condensed consolidated statements of cash flows, which is now being combined with cash and cash equivalents, and had the effect of an immaterial decrease to previously-presented cash flow used in investing activities for the three months ended April 2, 2017. In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers," which created ASC 606, "Revenue from Contracts with Customers," and largely superseded the existing guidance of ASC 605, "Revenue Recognition." This standard outlined a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and superseded 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 would now be effective for annual and interim periods beginning on or after December 15, 2017. We have adopted the guidance of ASC 606 as of January 1, 2018, using the modified retrospective method and have applied the standard to only those contracts which were not completed as of the transition date. The adoption of this standard did not have any material impact on revenues in the three months ended April 1, 2018. Prior period amounts were not adjusted and have continued to be reported in accordance with our historic accounting under Topic 605. While we considered an adjustment to opening retained earnings as prescribed by the modified retrospective method, there was no material adjustment ultimately required. Furthermore, there was no material difference between the prior period amounts as reported under ASC 605 and such amounts as would have been reported under ASC 606. Information about the nature, amount and timing of our revenues from contracts with customers is disclosed in Note 10. Revenues. Our accounting policy for revenue recognition is set forth below. Revenue Recognition Revenue from the sale of products is recognized when control of the promised goods is transferred to our customers based on the agreed-upon shipping terms, in an amount that reflects the consideration to which we expect to be entitled in exchange for those goods or services. Volume rebates, expected returns, discounts and other incentives to customers are considered variable consideration and we estimate these amounts based on the expected amount to be provided to customers and reduce the revenues we recognize accordingly. Sales taxes and value added taxes assessed by governmental entities are excluded from the measurement of consideration expected to be received. Shipping and handling costs incurred after a customer has taken possession of our goods are treated as a fulfillment cost and are not considered a separate performance obligation. Shipping and other transportation costs charged to customers are recorded in both revenues and cost of goods sold in the condensed consolidated statements of comprehensive income (loss). Other Recent Accounting Pronouncements not yet Adopted In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)", which will replace the existing guidance in ASC 840, "Leases." The updated standard aims to increase transparency and comparability among organizations by requiring lessees to recognize lease assets and lease liabilities on the balance sheet and requiring disclosure of key information about leasing arrangements. This ASU is effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods; early adoption is permitted and modified retrospective application is required. While we are currently assessing the impact that ASU 2016-02 will have on our consolidated financial statements, we anticipate that the primary impact upon adoption will be to our consolidated balance sheets from the recognition, on a discounted basis, of our minimum commitments under non-cancelable operating leases, resulting in the recognition of right to use assets and lease obligations. Our current minimum undiscounted lease commitments under non-cancelable operating leases are disclosed in Note 9. Commitments and Contingencies. |
Acquisitions (Tables)
Acquisitions (Tables) - USD ($) $ in Thousands | Jan. 29, 2018 | Oct. 02, 2017 | Apr. 01, 2018 |
Business Acquisition [Line Items] | |||
Finite-lived intangible assets acquired | Intangible assets acquired from the DW3 acquisition consist of the following: Fair Value (in thousands) Expected Useful Life (Years) Customer relationships $ 47,282 10.0 Trademarks and trade names 12,069 10.0 Patents 1,278 10.0 Other 114 3.0 Total intangible assets acquired $ 60,743 | ||
Pro forma information of acquisitions | Three Months Ended April 1, 2018 (In thousands, except per share amounts) Masonite DW3 Pro Forma Net sales $ 517,879 $ 4,918 $ 522,797 Net income (loss) attributable to Masonite 20,826 81 20,907 Basic earnings (loss) per common share $ 0.74 $ 0.74 Diluted earnings (loss) per common share 0.73 0.73 Three Months Ended April 2, 2017 (In thousands, except per share amounts) Masonite DW3 A&F Historical Sales to A&F Pro Forma Net sales $ 487,181 $ 12,694 $ 3,140 $ (381 ) $ 502,634 Net income (loss) attributable to Masonite 23,565 (133 ) 193 (14 ) 23,611 Basic earnings (loss) per common share $ 0.79 $ 0.79 Diluted earnings (loss) per common share 0.77 0.78 | ||
DW3 | |||
Business Acquisition [Line Items] | |||
Goodwill | $ 36,503 | ||
Aggregate consideration paid for acquisitions | The fair value of assets acquired and liabilities assumed in the DW3 acquisition are as follows: (In thousands) DW3 Accounts receivable $ 8,590 Inventory 5,059 Property, plant and equipment 8,196 Goodwill 36,503 Intangible assets 60,743 Accounts payable and accrued expenses (10,418 ) Deferred income taxes (12,296 ) Other assets and liabilities, net (68 ) Cash consideration, net of cash acquired $ 96,309 | ||
Pro forma information of acquisitions | The following schedule represents the amounts of net sales and net income (loss) attributable to Masonite from the DW3 acquisition which have been included in the consolidated statements of comprehensive income (loss) for the periods indicated subsequent to the acquisition date. Three Months Ended April 1, 2018 (In thousands) Net sales $ 11,198 Net income (loss) attributable to Masonite 948 | ||
A&F | |||
Business Acquisition [Line Items] | |||
Goodwill | $ 5,895 | ||
Aggregate consideration paid for acquisitions | The aggregate consideration paid for the A&F acquisition was as follows: (In thousands) A&F Accounts receivable $ 2,169 Inventory 1,230 Property, plant and equipment 2,716 Goodwill 5,895 Intangible assets 4,400 Accounts payable and accrued expenses (694 ) Other assets and liabilities, net (1,903 ) Cash consideration, net of cash acquired $ 13,813 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Apr. 01, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | The amounts of inventory on hand were as follows as of the dates indicated: (In thousands) April 1, December 31, Raw materials $ 170,814 $ 172,960 Finished goods 78,908 68,851 Provision for obsolete or aged inventory (8,308 ) (7,769 ) Inventories, net $ 241,414 $ 234,042 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 3 Months Ended |
Apr. 01, 2018 | |
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 1, December 31, Land $ 26,883 $ 26,790 Buildings 177,651 176,077 Machinery and equipment 681,899 661,026 Property, plant and equipment, gross 886,433 863,893 Accumulated depreciation (301,208 ) (290,334 ) Property, plant and equipment, net $ 585,225 $ 573,559 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Apr. 01, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in carrying amount of goodwill | Changes in the carrying amount of goodwill were as follows as of the dates indicated: (In thousands) North American Residential Europe Architectural Total December 31, 2017 $ 2,867 $ 35,431 $ 100,151 $ 138,449 Goodwill from 2018 acquisitions — 36,503 — 36,503 Foreign exchange fluctuations (8 ) 1,000 (74 ) 918 April 1, 2018 $ 2,859 $ 72,934 $ 100,077 $ 175,870 |
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 1, 2018 (In thousands) Cost Accumulated Amortization Translation Adjustment Net Book Value Definite life intangible assets: Customer relationships $ 207,610 $ (84,258 ) $ (10,212 ) $ 113,140 Patents 33,560 (22,277 ) (711 ) 10,572 Software 34,149 (31,477 ) (192 ) 2,480 Trademarks and tradenames 15,089 (2,306 ) (128 ) 12,655 Other 12,340 (10,186 ) (1,762 ) 392 Total definite life intangible assets 302,748 (150,504 ) (13,005 ) 139,239 Indefinite life intangible assets: Trademarks and tradenames 108,572 — (7,949 ) 100,623 Total intangible assets $ 411,320 $ (150,504 ) $ (20,954 ) $ 239,862 December 31, 2017 (In thousands) Cost Accumulated Amortization Translation Adjustment Net Book Value Definite life intangible assets: Customer relationships $ 160,327 $ (79,628 ) $ (11,338 ) $ 69,361 Patents 31,999 (21,768 ) (686 ) 9,545 Software 33,574 (31,183 ) (190 ) 2,201 Other 15,246 (11,836 ) (1,781 ) 1,629 Total definite life intangible assets 241,146 (144,415 ) (13,995 ) 82,736 Indefinite life intangible assets: Trademarks and tradenames 108,572 — (8,824 ) 99,748 Total intangible assets $ 349,718 $ (144,415 ) $ (22,819 ) $ 182,484 |
Estimated future amortization of intangible assets with definite lives | The estimated future amortization of intangible assets with definite lives as of April 1, 2018 , is as follows: (In thousands) Fiscal year: 2018 (remaining nine months) $ 20,254 2019 24,603 2020 20,543 2021 17,309 2022 13,832 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 3 Months Ended |
Apr. 01, 2018 | |
Accrued Expenses [Abstract] | |
Schedule of Accrued Expenses | The details of our accrued expenses were as follows as of the dates indicated: (In thousands) April 1, December 31, Accrued payroll $ 38,384 $ 38,296 Accrued rebates 29,579 34,488 Accrued interest 2,328 10,688 Other accruals 44,163 43,287 Total accrued expenses $ 114,454 $ 126,759 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Apr. 01, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | (In thousands) April 1, December 31, 5.625% senior unsecured notes due 2023 $ 625,000 $ 625,000 Unamortized premium on 2023 Notes 5,441 5,714 Debt issuance costs for 2023 Notes (6,203 ) (6,635 ) Capital lease obligations 286 378 Other long-term debt 1,170 1,200 Total long-term debt $ 625,694 $ 625,657 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Apr. 01, 2018 | |
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: 2018 (remaining nine months) $ 17,688 2019 22,488 2020 19,767 2021 15,089 2022 10,829 Thereafter 66,303 Total future minimum lease payments $ 152,164 |
Share Based Compensation Plans
Share Based Compensation Plans (Tables) | 3 Months Ended |
Apr. 01, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock appreciation rights award activity | Three Months Ended April 1, 2018 Stock Appreciation Rights Aggregate Intrinsic Value (in thousands) Weighted Average Exercise Price Average Remaining Contractual Life (Years) Outstanding, beginning of period 537,930 $ 23,263 $ 32.00 4.5 Granted 69,752 65.00 Exercised (17,174 ) 848 20.98 Outstanding, end of period 590,508 $ 15,895 $ 36.22 5.0 Exercisable, end of period 467,623 $ 15,834 $ 28.11 3.8 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 |
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: 2018 Grants 2017 Grants SAR value (model conclusion) $ 18.63 $ 22.65 Risk-free rate 2.7 % 2.0 % Expected dividend yield 0.0 % 0.0 % Expected volatility 22.8 % 25.8 % Expected term (years) 6.0 6.0 |
Restricted stock units award activity | Three Months Ended April 1, 2018 April 2, 2017 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 417,598 $ 66.14 501,926 $ 58.51 Granted 252,740 62.74 226,808 70.60 Delivered (152,743 ) (176,077 ) Withheld to cover (1) (41,557 ) (54,614 ) Forfeited (6,211 ) (30,664 ) Outstanding, end of period 469,827 $ 65.70 467,379 $ 65.72 ____________ (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. |
Restructuring Costs (Tables)
Restructuring Costs (Tables) | 3 Months Ended |
Apr. 01, 2018 | |
Restructuring and Related Activities [Abstract] | |
Total restructuring costs by plan | Cumulative Amount Incurred Through April 1, 2018 (In thousands) North American Residential Europe Architectural Corporate & Other Total 2016 Plan $ — $ — $ 3,707 $ — $ 3,707 2015 Plan — 2,335 — 3,274 5,609 2014 Plan — — — 7,993 7,993 2013 Plan 3,025 2,733 — 2,157 7,915 2012 and Prior Plans 2,378 12,668 — 3,609 18,655 Total Restructuring Costs $ 5,403 $ 17,736 $ 3,707 $ 17,033 $ 43,879 |
Schedule of restructuring reserve by type of cost | The changes in the accrual for restructuring by activity were as follows for the periods indicated: (In thousands) December 31, Cash Payments April 1, 2016 Plan $ 90 $ 90 $ — 2012 and Prior Plans 194 43 151 Total $ 284 $ 133 $ 151 (In thousands) January 1, Severance Cash Payments April 2, 2015 Plan $ 1,300 $ 271 $ 367 $ 1,204 2014 Plan 282 22 76 228 2013 Plan 426 — — 426 2012 and Prior Plans 465 — 27 438 Total $ 2,473 $ 293 $ 470 $ 2,296 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Apr. 01, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | (In thousands, except share and per share information) Three Months Ended April 1, 2018 April 2, 2017 Net income (loss) attributable to Masonite $ 20,826 $ 23,565 Less: income (loss) from discontinued operations, net of tax (250 ) (245 ) Income (loss) from continuing operations attributable to Masonite $ 21,076 $ 23,810 Shares used in computing basic earnings per share 28,189,790 29,861,099 Effect of dilutive securities: Incremental shares issuable under share compensation plans and warrants 482,472 593,889 Shares used in computing diluted earnings per share 28,672,262 30,454,988 Basic earnings (loss) per common share attributable to Masonite: Continuing operations attributable to Masonite $ 0.75 $ 0.80 Discontinued operations attributable to Masonite, net of tax (0.01 ) (0.01 ) Total Basic earnings per common share attributable to Masonite $ 0.74 $ 0.79 Diluted earnings (loss) per common share attributable to Masonite: Continuing operations attributable to Masonite $ 0.74 $ 0.78 Discontinued operations attributable to Masonite, net of tax (0.01 ) (0.01 ) Total Diluted earnings per common share attributable to Masonite $ 0.73 $ 0.77 Anti-dilutive instruments excluded from diluted earnings per common share: Stock appreciation rights 51,129 — |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Apr. 01, 2018 | |
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 1, 2018 (In thousands) North American Residential Europe Architectural Corporate & Other Total Net sales $ 360,542 $ 87,752 $ 71,564 $ 4,424 $ 524,282 Intersegment sales (862 ) (648 ) (4,893 ) — (6,403 ) Net sales to external customers $ 359,680 $ 87,104 $ 66,671 $ 4,424 $ 517,879 Adjusted EBITDA $ 50,398 $ 9,930 $ 7,660 $ (6,574 ) $ 61,414 (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 $ 7,738 $ 5,214 $ (5,295 ) $ 52,594 |
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 1, 2018 April 2, 2017 Adjusted EBITDA $ 61,414 $ 52,594 Less (plus): Depreciation 13,934 14,024 Amortization 6,585 5,970 Share based compensation expense 3,065 2,427 Loss (gain) on disposal of property, plant and equipment 612 (274 ) Restructuring costs — 293 Interest expense (income), net 8,756 7,024 Other expense (income), net (272 ) (514 ) Income tax expense (benefit) 6,701 (1,679 ) Loss (income) from discontinued operations, net of tax 250 245 Net income (loss) attributable to non-controlling interest 957 1,513 Net income (loss) attributable to Masonite $ 20,826 $ 23,565 |
Other Comprehensive Income an38
Other Comprehensive Income and Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Apr. 01, 2018 | |
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 1, 2018 April 2, 2017 Accumulated foreign currency translation gains (losses), beginning of period $ (89,824 ) $ (127,433 ) Foreign currency translation gain (loss) 5,774 5,730 Income tax benefit (expense) on foreign currency translation gain (loss) (22 ) (643 ) Less: foreign currency translation gain (loss) attributable to non-controlling interest (243 ) 104 Accumulated foreign currency translation gains (losses), end of period (83,829 ) (122,450 ) Accumulated pension and other post-retirement adjustments, beginning of period (20,328 ) (21,553 ) Amortization of actuarial net losses 300 292 Income tax benefit (expense) on amortization of actuarial net losses (78 ) (114 ) Accumulated pension and other post-retirement adjustments (20,106 ) (21,375 ) Accumulated other comprehensive income (loss) $ (103,935 ) $ (143,825 ) Other comprehensive income (loss), net of tax $ 5,974 $ 5,265 Less: other comprehensive income (loss) attributable to non-controlling interest (243 ) 104 Other comprehensive income (loss) attributable to Masonite $ 6,217 $ 5,161 |
Supplemental Cash Flow Inform39
Supplemental Cash Flow Information (Tables) | 3 Months Ended |
Apr. 01, 2018 | |
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 1, 2018 April 2, 2017 Transactions involving cash: Interest paid $ 17,337 $ 13,592 Interest received 400 54 Income taxes paid 1,583 2,763 Income tax refunds 70 13 Non-cash transactions: Property, plant and equipment additions in accounts payable 2,949 3,984 |
Schedule of Cash, Cash Equivalents and Restricted Cash | The following reconciles total cash, cash equivalents and restricted cash as of the dates indicated: April 1, 2018 December 31, 2017 Cash and cash equivalents $ 37,651 $ 176,669 Restricted cash 11,220 11,895 Total cash, cash equivalents and restricted cash $ 48,871 $ 188,564 |
Variable Interest Entity (Table
Variable Interest Entity (Tables) | 3 Months Ended |
Apr. 01, 2018 | |
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 1, December 31, Current assets $ 9,075 $ 7,213 Property, plant and equipment, net 10,731 11,344 Long-term deferred income taxes 6,550 5,472 Other assets, net 3,442 3,386 Current liabilities (2,419 ) (2,326 ) Other long-term liabilities (1,782 ) (1,699 ) Non-controlling interest (4,015 ) (4,029 ) Net assets of the VIE consolidated by Masonite $ 21,582 $ 19,361 |
Business Overview and Signifi41
Business Overview and Significant Accounting Policies (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Apr. 01, 2018USD ($)Countryfacility | Apr. 02, 2017USD ($) | Dec. 31, 2017USD ($) | Jan. 01, 2017USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Other expense (income), net | $ 272 | $ 514 | ||
Selling, general and administration expenses | $ 68,211 | 65,110 | ||
Number of manufacturing locations | facility | 65 | |||
Number of countries | Country | 8 | |||
Accounting Standards Update 2017-07 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Other expense (income), net | (300) | $ (1,100) | $ (500) | |
Selling, general and administration expenses | $ 300 | $ 1,100 | $ 500 |
Acquisitions (Narrative) (Detai
Acquisitions (Narrative) (Details) - USD ($) $ in Thousands | Jan. 29, 2018 | Oct. 02, 2017 | Apr. 01, 2018 | Apr. 02, 2017 |
Business Acquisition [Line Items] | ||||
Cash consideration, net of cash acquired | $ 96,309 | $ 0 | ||
DW3 | ||||
Business Acquisition [Line Items] | ||||
Acquired equity interests, percent | 100.00% | |||
Cash consideration, net of cash acquired | $ 96,309 | |||
Goodwill acquired during period | 36,503 | |||
Gross contractual value of acquired trade receivables | $ 9,100 | |||
A&F | ||||
Business Acquisition [Line Items] | ||||
Acquired equity interests, percent | 100.00% | |||
Cash consideration, net of cash acquired | $ 13,813 | |||
Goodwill acquired during period | 5,895 | |||
Gross contractual value of acquired trade receivables | $ 2,200 | |||
Customer Relationships | DW3 | ||||
Business Acquisition [Line Items] | ||||
Amortization period for acquired customer relationships | 10 years | |||
Customer Relationships | A&F | ||||
Business Acquisition [Line Items] | ||||
Amortization period for acquired customer relationships | 10 years |
Acquisitions (Aggregate Conside
Acquisitions (Aggregate Consideration) (Details) - USD ($) $ in Thousands | Jan. 29, 2018 | Oct. 02, 2017 | Apr. 01, 2018 | Apr. 02, 2017 |
Business Acquisition [Line Items] | ||||
Cash consideration, net of cash acquired | $ 96,309 | $ 0 | ||
DW3 | ||||
Business Acquisition [Line Items] | ||||
Accounts receivable | $ 8,590 | |||
Inventory | 5,059 | |||
Property, plant and equipment | 8,196 | |||
Goodwill | 36,503 | |||
Intangible assets | 60,743 | |||
Accounts payable and accrued expenses | (10,418) | |||
Deferred income taxes | (12,296) | |||
Other assets and liabilities, net | (68) | |||
Cash consideration, net of cash acquired | $ 96,309 | |||
A&F | ||||
Business Acquisition [Line Items] | ||||
Accounts receivable | $ 2,169 | |||
Inventory | 1,230 | |||
Property, plant and equipment | 2,716 | |||
Goodwill | 5,895 | |||
Intangible assets | 4,400 | |||
Accounts payable and accrued expenses | (694) | |||
Other assets and liabilities, net | (1,903) | |||
Cash consideration, net of cash acquired | $ 13,813 |
Acquisitions (Revenues and Earn
Acquisitions (Revenues and Earnings) (Details) - DW3 $ in Thousands | 3 Months Ended |
Apr. 01, 2018USD ($) | |
Business Acquisition [Line Items] | |
Net sales | $ 11,198 |
Net income (loss) attributable to Masonite | $ 948 |
Acquisitions (Pro Forma Informa
Acquisitions (Pro Forma Information) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Apr. 01, 2018 | Apr. 02, 2017 | |
Business Acquisition, Pro Forma Information [Line Items] | ||
Net sales | $ 517,879 | $ 487,181 |
Pro forma revenue | 522,797 | 502,634 |
Net income (loss) attributable to Masonite | 20,826 | 23,565 |
Pro forma net income (loss) attributable Masonite | $ 20,907 | $ 23,611 |
Basic earnings per common share attributable to Masonite (in dollars per share) | $ 0.74 | $ 0.79 |
Pro forma earnings per share, basic (in dollars per share) | 0.74 | 0.79 |
Diluted earnings per common share attributable to Masonite (in dollars per share) | 0.73 | 0.77 |
Pro forma earnings per share, diluted (in dollars per share) | $ 0.73 | $ 0.78 |
DW3 | ||
Business Acquisition, Pro Forma Information [Line Items] | ||
Net sales | $ 4,918 | $ 12,694 |
Net income (loss) attributable to Masonite | $ 81 | (133) |
A&F | ||
Business Acquisition, Pro Forma Information [Line Items] | ||
Net sales | 3,140 | |
Pro forma elimination of intercompany sales | (381) | |
Net income (loss) attributable to Masonite | 193 | |
Pro forma elimination of net income resulting from intercompany sales | $ (14) |
Acquisitions Intangible assets
Acquisitions Intangible assets acquired (Details) - DW3 $ in Thousands | Jan. 29, 2018USD ($) |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Customer relationships | $ 47,282 |
Trademarks and trade names | 12,069 |
Patents | 1,278 |
Other | 114 |
Total intangible assets acquired | $ 60,743 |
Customer Relationships | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Amortization period for acquired intangible assets | 10 years |
Trademarks and trade names | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Amortization period for acquired intangible assets | 10 years |
Patents | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Amortization period for acquired intangible assets | 10 years |
Other intangible assets | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Amortization period for acquired intangible assets | 3 years |
Accounts Receivable (Details)
Accounts Receivable (Details) $ in Millions | 3 Months Ended | 12 Months Ended |
Apr. 01, 2018USD ($)Customer | Dec. 31, 2017USD ($)Customer | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Allowance for doubtful accounts | $ | $ 2.1 | $ 1.8 |
Accounts Receivable | Customer Concentration Risk | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Concentration risk, customers | Customer | 10 | 10 |
Concentration risk, percent | 55.20% | 56.20% |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Apr. 01, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 170,814 | $ 172,960 |
Finished goods | 78,908 | 68,851 |
Provision for obsolete or aged inventory | (8,308) | (7,769) |
Inventories, net | $ 241,414 | $ 234,042 |
Property, Plant and Equipment49
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Apr. 01, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 886,433 | $ 863,893 |
Accumulated depreciation | (301,208) | (290,334) |
Property, plant and equipment, net | 585,225 | 573,559 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 26,883 | 26,790 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 177,651 | 176,077 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 681,899 | $ 661,026 |
Property, Plant and Equipment50
Property, Plant and Equipment (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2018 | Apr. 02, 2017 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation | $ 13,934 | $ 14,024 |
Goodwill and Intangible Asset51
Goodwill and Intangible Assets (Schedule of Goodwill) (Details) $ in Thousands | 3 Months Ended |
Apr. 01, 2018USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, beginning | $ 138,449 |
Goodwill, ending | 175,870 |
North American Residential | |
Goodwill [Line Items] | |
Goodwill acquired during period | 0 |
Goodwill [Roll Forward] | |
Goodwill, beginning | 2,867 |
Foreign exchange fluctuations | (8) |
Goodwill, ending | 2,859 |
Europe | |
Goodwill [Line Items] | |
Goodwill acquired during period | 36,503 |
Goodwill [Roll Forward] | |
Goodwill, beginning | 35,431 |
Foreign exchange fluctuations | 1,000 |
Goodwill, ending | 72,934 |
Architectural | |
Goodwill [Line Items] | |
Goodwill acquired during period | 0 |
Goodwill [Roll Forward] | |
Goodwill, beginning | 100,151 |
Foreign exchange fluctuations | (74) |
Goodwill, ending | 100,077 |
Operating Segments | |
Goodwill [Line Items] | |
Goodwill acquired during period | 36,503 |
Goodwill [Roll Forward] | |
Goodwill, beginning | 138,449 |
Foreign exchange fluctuations | 918 |
Goodwill, ending | $ 175,870 |
Goodwill and Intangible Asset52
Goodwill and Intangible Assets (Cost and Accumulated Amortized Values) (Details) - USD ($) $ in Thousands | Apr. 01, 2018 | Dec. 31, 2017 |
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | $ 302,748 | $ 241,146 |
Finite-lived intangible assets, accumulated amortization | (150,504) | (144,415) |
Finite-lived intangible assets, translation adjustment | (13,005) | (13,995) |
Finite-lived intangible assets, net | 139,239 | 82,736 |
Total intangible assets, gross | 411,320 | 349,718 |
Total intangible assets, translation adjustment | (20,954) | (22,819) |
Total intangible assets, net | 239,862 | 182,484 |
Customer Relationships | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 207,610 | 160,327 |
Finite-lived intangible assets, accumulated amortization | (84,258) | (79,628) |
Finite-lived intangible assets, translation adjustment | (10,212) | (11,338) |
Finite-lived intangible assets, net | 113,140 | 69,361 |
Patents | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 33,560 | 31,999 |
Finite-lived intangible assets, accumulated amortization | (22,277) | (21,768) |
Finite-lived intangible assets, translation adjustment | (711) | (686) |
Finite-lived intangible assets, net | 10,572 | 9,545 |
Software | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 34,149 | 33,574 |
Finite-lived intangible assets, accumulated amortization | (31,477) | (31,183) |
Finite-lived intangible assets, translation adjustment | (192) | (190) |
Finite-lived intangible assets, net | 2,480 | 2,201 |
Trademarks and trade names | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 15,089 | |
Finite-lived intangible assets, accumulated amortization | (2,306) | |
Finite-lived intangible assets, translation adjustment | (128) | |
Finite-lived intangible assets, net | 12,655 | |
Other | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 12,340 | 15,246 |
Finite-lived intangible assets, accumulated amortization | (10,186) | (11,836) |
Finite-lived intangible assets, translation adjustment | (1,762) | (1,781) |
Finite-lived intangible assets, net | 392 | 1,629 |
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 | 108,572 | 108,572 |
Indefinite-lived intangible assets, net | 100,623 | 99,748 |
Total intangible assets, translation adjustment | $ (7,949) | $ (8,824) |
Goodwill and Intangible Asset53
Goodwill and Intangible Assets (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2018 | Apr. 02, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization of intangible assets | $ 6.1 | $ 5.9 |
Goodwill and Intangible Asset54
Goodwill and Intangible Assets (Estimated Future Amortization of Intangible Assets) (Details) $ in Thousands | Apr. 01, 2018USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2018 (remaining nine months) | $ 20,254 |
2,019 | 24,603 |
2,020 | 20,543 |
2,021 | 17,309 |
2,022 | $ 13,832 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | Apr. 01, 2018 | Dec. 31, 2017 |
Accrued Expenses [Abstract] | ||
Accrued payroll | $ 38,384 | $ 38,296 |
Accrued rebates | 29,579 | 34,488 |
Accrued interest | 2,328 | 10,688 |
Other accruals | 44,163 | 43,287 |
Total accrued expenses | $ 114,454 | $ 126,759 |
Long-Term Debt (Details)
Long-Term Debt (Details) - USD ($) | Apr. 01, 2018 | Dec. 31, 2017 | Sep. 27, 2017 | Mar. 23, 2015 |
Debt Instrument [Line Items] | ||||
Capital lease obligations | $ 286,000 | $ 378,000 | ||
Other long-term debt | 1,170,000 | 1,200,000 | ||
Total long-term debt | 625,694,000 | 625,657,000 | ||
Senior Notes | Senior Notes Due 2023 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 625,000,000 | 625,000,000 | ||
Unamortized premium on 2023 Notes | 5,441,000 | 5,714,000 | $ 6,000,000 | |
Debt issuance costs for 2023 Notes | (6,203,000) | $ (6,635,000) | $ (2,100,000) | $ (7,100,000) |
Revolving Credit Facility | ABL Facility 2020 | ||||
Debt Instrument [Line Items] | ||||
Revolving credit facilities | $ 0 |
Long-Term Debt (Narrative) (Det
Long-Term Debt (Narrative) (Details) | Mar. 23, 2015USD ($) | Apr. 01, 2018USD ($) | Apr. 02, 2017USD ($) | Dec. 31, 2017USD ($) | Jan. 03, 2016USD ($) | Sep. 27, 2017USD ($) | Apr. 09, 2015USD ($) |
Debt Instrument [Line Items] | |||||||
Debt issued, percent above par (percent) | 100.00% | ||||||
Proceeds from issuance of long-term debt | $ 0 | $ 423,000 | |||||
Senior Notes | Senior Notes Due 2023 | |||||||
Debt Instrument [Line Items] | |||||||
Interest expense | $ 8,700,000 | $ 6,900,000 | |||||
Aggregate principal | $ 475,000,000 | $ 150,000,000 | |||||
Interest rate stated percentage | 5.625% | ||||||
Debt issued, percent above par (percent) | 104.00% | ||||||
Unamortized premium on 2023 Notes | $ 5,441,000 | $ 5,714,000 | $ 6,000,000 | ||||
Proceeds from issuance of long-term debt | 153,900,000 | $ 467,900,000 | |||||
Debt issuance costs | $ (7,100,000) | $ (6,203,000) | (6,635,000) | $ (2,100,000) | |||
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 | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate stated percentage | 8.25% | ||||||
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 | ||||||
Revolving credit facilities | $ 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% |
Commitments and Contingencies58
Commitments and Contingencies (Details) $ in Thousands | Apr. 01, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2018 (remaining nine months) | $ 17,688 |
2,019 | 22,488 |
2,020 | 19,767 |
2,021 | 15,089 |
2,022 | 10,829 |
Thereafter | 66,303 |
Total future minimum lease payments | $ 152,164 |
Commitments and Contingencies59
Commitments and Contingencies (Narrative) (Details) $ in Millions | 3 Months Ended | |
Apr. 01, 2018USD ($)Lease_Option | Apr. 02, 2017USD ($) | |
Operating Leased Assets [Line Items] | ||
Lease renewal term | 5 years | |
Rent expense | $ | $ 7.7 | $ 7.1 |
Minimum | ||
Operating Leased Assets [Line Items] | ||
Lease renewal options | 0 | |
Maximum | ||
Operating Leased Assets [Line Items] | ||
Lease renewal options | 3 |
Share Based Compensation Plan60
Share Based Compensation Plans Narrative (Details) - USD ($) $ in Thousands | Jul. 12, 2012 | Apr. 01, 2018 | Apr. 02, 2017 | Jun. 09, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation | $ 3,065 | $ 2,427 | ||
Share based compensation unrecognized | $ 22,300 | |||
Weighted average remaining requisite service period | 2 years 1 month 7 days | |||
Deferred compensation liability | $ 6,200 | |||
Deferred compensation asset | $ 6,200 | |||
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 | 753,136 | |||
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 | $ 700 | $ 400 | ||
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 | $ 15,900 | |||
Average requisite service period | 2 years 8 months 16 days | |||
Units vested | 194,300 | |||
Fair value of shares vested | $ 12,400 | |||
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 Plan61
Share Based Compensation Plans (SARs) (Details) - Stock Appreciation Rights (SARs) - USD ($) $ / shares in Units, $ in Thousands | Apr. 01, 2018 | Dec. 31, 2017 | Apr. 02, 2017 | Jan. 01, 2017 | Apr. 01, 2018 | Apr. 02, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||||
Outstanding, beginning of period, shares | 537,930 | 790,290 | ||||
Granted, shares | 69,752 | 59,265 | ||||
Exercised, shares | (17,174) | (181,965) | ||||
Forfeited, shares | (9,019) | |||||
Outstanding, end of period, shares | 590,508 | 537,930 | 658,571 | 790,290 | 590,508 | 658,571 |
Exercisable, shares | 467,623 | 556,388 | 467,623 | 556,388 | ||
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 | $ 23,263 | $ 32,659 | ||||
Exercised, aggregate intrinsic value | 848 | 10,846 | ||||
Outstanding, end period, aggregate intrinsic value | $ 15,895 | $ 23,263 | $ 32,339 | $ 32,659 | 15,895 | 32,339 |
Exercisable, aggregate intrinsic value | $ 15,834 | $ 31,248 | $ 15,834 | $ 31,248 | ||
Outstanding, beginning of period, weighted average remaining contractual term | 5 years | 4 years 6 months 3 days | 5 years | 4 years 7 months 9 days | ||
Outstanding, end of period, weighted average remaining contractual term | 5 years | 4 years 6 months 3 days | 5 years | 4 years 7 months 9 days | ||
Exercisable, weighted average remaining contractual term | 3 years 9 months 22 days | 4 years 2 months 13 days | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||||||
Outstanding, beginning of period, weighted average exercise price | $ 32 | $ 24.47 | ||||
Granted, weighted average exercise price | 65 | 77 | ||||
Exercised, weighted average exercise price | 20.98 | 19.04 | ||||
Forfeited, weighted average exercise price | 65.21 | |||||
Outstanding, end of period, weighted average exercise price | $ 36.22 | $ 32 | $ 30.15 | $ 24.47 | 36.22 | 30.15 |
Exercisable, weighted average exercise price | $ 28.11 | $ 23.09 | $ 28.11 | $ 23.09 |
Share Based Compensation Plan62
Share Based Compensation Plans (Weighted Average Grant Date Assumptions) (Details) - Stock Appreciation Rights (SARs) - $ / shares | 3 Months Ended | |
Apr. 01, 2018 | Apr. 02, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Option value (model conclusion) | $ 18.63 | $ 22.65 |
Risk-free rate | 2.70% | 2.00% |
Expected dividend yield | 0.00% | 0.00% |
Expected volatility | 22.80% | 25.80% |
Expected term (in years) | 6 years | 6 years |
Share Based Compensation Plan63
Share Based Compensation Plans (RSUs) (Details) - Restricted Stock Units (RSUs) - $ / shares | 3 Months Ended | ||
Apr. 01, 2018 | Apr. 02, 2017 | ||
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) | 417,598 | 501,926 | |
Granted (shares) | 252,740 | 226,808 | |
Delivered (shares) | (152,743) | (176,077) | |
Withheld to cover (shares) | [1] | (41,557) | (54,614) |
Forfeited (shares) | (6,211) | (30,664) | |
Outstanding, end of period (shares) | 469,827 | 467,379 | |
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) | $ 66.14 | $ 58.51 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | 62.74 | 70.60 | |
Outstanding, end of period (weighted average grant date fair value) | $ 65.70 | $ 65.72 | |
[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. |
Restructuring Costs (Restructur
Restructuring Costs (Restructuring Costs by Plan) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2018 | Apr. 02, 2017 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs, net | $ 0 | $ 293 |
Cumulative amount incurred to date | 43,879 | |
2016 Plan | ||
Restructuring Cost and Reserve [Line Items] | ||
Cumulative amount incurred to date | 3,707 | |
2015 Plan | ||
Restructuring Cost and Reserve [Line Items] | ||
Cumulative amount incurred to date | 5,609 | |
2014 Plan | ||
Restructuring Cost and Reserve [Line Items] | ||
Cumulative amount incurred to date | 7,993 | |
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 | 18,655 | |
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 | 17,736 | |
Operating Segments | Architectural | ||
Restructuring Cost and Reserve [Line Items] | ||
Cumulative amount incurred to date | 3,707 | |
Operating Segments | Corporate & Other | ||
Restructuring Cost and Reserve [Line Items] | ||
Cumulative amount incurred to date | 17,033 | |
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 | 3,707 | |
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 | 3,274 | |
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 | 7,993 | |
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 | 12,668 | |
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. 01, 2018 | Apr. 02, 2017 | |
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, beginning balance | $ 284 | $ 2,473 |
Restructuring charges | 0 | 293 |
Cash payments | 133 | 470 |
Restructuring reserve, ending balance | 151 | 2,296 |
Severance | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring charges | 293 | |
2016 Plan | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, beginning balance | 90 | |
Cash payments | 90 | |
Restructuring reserve, ending balance | 0 | |
2015 Plan | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, beginning balance | 1,300 | |
Cash payments | 367 | |
Restructuring reserve, ending balance | 1,204 | |
2015 Plan | Severance | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring charges | 271 | |
2014 Plan | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, beginning balance | 282 | |
Cash payments | 76 | |
Restructuring reserve, ending balance | 228 | |
2014 Plan | Severance | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring charges | 22 | |
2013 Plan | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, beginning balance | 426 | |
Cash payments | 0 | |
Restructuring reserve, ending balance | 426 | |
2013 Plan | Severance | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring charges | 0 | |
2012 and Prior Plans | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, beginning balance | 194 | 465 |
Cash payments | 43 | 27 |
Restructuring reserve, ending balance | $ 151 | 438 |
2012 and Prior Plans | Severance | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring charges | $ 0 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2018 | Apr. 02, 2017 | |
Income Tax Disclosure [Abstract] | ||
Canadian federal statutory rate | 26.50% | |
Income tax benefit due to the exercise and delivery of share-based awards | $ 0.2 | $ 5 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Apr. 01, 2018 | Apr. 02, 2017 | |
Earnings Per Share [Abstract] | ||
Net income (loss) attributable to Masonite | $ 20,826 | $ 23,565 |
Less: income (loss) from discontinued operations, net of tax | (250) | (245) |
Income (loss) from continuing operations attributable to Masonite | $ 21,076 | $ 23,810 |
Shares used in computing basic earnings per share | 28,189,790 | 29,861,099 |
Effect of dilutive securities: | ||
Incremental shares issuable under share compensation plans and warrants | 482,472 | 593,889 |
Shares used in computing diluted earnings per share | 28,672,262 | 30,454,988 |
Basic earnings (loss) per common share attributable to Masonite: | ||
Continuing operations attributable to Masonite | $ 0.75 | $ 0.80 |
Discontinued operations attributable to Masonite, net of tax | (0.01) | (0.01) |
Total Basic earnings per common share attributable to Masonite | 0.74 | 0.79 |
Continuing operations attributable to Masonite | 0.74 | 0.78 |
Discontinued operations attributable to Masonite, net of tax | (0.01) | (0.01) |
Total Diluted earnings per common share attributable to Masonite | $ 0.73 | $ 0.77 |
Anti-dilutive instruments excluded from diluted earnings per common share | 51,129 | 0 |
Segment Information (Geographic
Segment Information (Geographic Segments Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2018 | Apr. 02, 2017 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | $ 517,879 | $ 487,181 |
Adjusted EBITDA | 61,414 | 52,594 |
Operating Segments | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 524,282 | 493,216 |
Intersegment Eliminations | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | (6,403) | (6,035) |
North American Residential | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 359,680 | 338,042 |
Adjusted EBITDA | 50,398 | 44,937 |
North American Residential | Operating Segments | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 360,542 | 339,129 |
North American Residential | Intersegment Eliminations | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | (862) | (1,087) |
Europe | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 87,104 | 69,971 |
Adjusted EBITDA | 9,930 | 7,738 |
Europe | Operating Segments | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 87,752 | 70,827 |
Europe | Intersegment Eliminations | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | (648) | (856) |
Architectural | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 66,671 | 71,827 |
Adjusted EBITDA | 7,660 | 5,214 |
Architectural | Operating Segments | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 71,564 | 75,919 |
Architectural | Intersegment Eliminations | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | (4,893) | (4,092) |
Corporate & Other | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 4,424 | 7,341 |
Adjusted EBITDA | (6,574) | (5,295) |
Corporate & Other | Operating Segments | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 4,424 | 7,341 |
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. 01, 2018 | Apr. 02, 2017 | |
Segment Reporting [Abstract] | ||
Adjusted EBITDA | $ 61,414 | $ 52,594 |
Depreciation | 13,934 | 14,024 |
Amortization | 6,585 | 5,970 |
Share based compensation expense | 3,065 | 2,427 |
Loss (gain) on disposal of property, plant and equipment | 612 | (274) |
Restructuring costs, net | 0 | 293 |
Interest expense (income), net | 8,756 | 7,024 |
Other expense (income), net | (272) | (514) |
Income tax expense (benefit) | 6,701 | (1,679) |
Loss (income) from discontinued operations, net of tax | 250 | 245 |
Net income (loss) attributable to non-controlling interest | 957 | 1,513 |
Net income (loss) attributable to Masonite | $ 20,826 | $ 23,565 |
Segment Information (Additional
Segment Information (Additional Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2018 | Apr. 02, 2017 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Adjusted EBITDA | $ 61,414 | $ 52,594 |
Accounting Standards Update 2017-07 | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Adjusted EBITDA | (300) | |
Europe | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Adjusted EBITDA | 9,930 | 7,738 |
Europe | Accounting Standards Update 2017-07 | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Adjusted EBITDA | (100) | |
Corporate & Other | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Adjusted EBITDA | $ (6,574) | (5,295) |
Corporate & Other | Accounting Standards Update 2017-07 | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Adjusted EBITDA | $ (300) |
Other Comprehensive Income an71
Other Comprehensive Income and Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Apr. 01, 2018 | Apr. 02, 2017 | Dec. 31, 2017 | |
Accumulated Foreign Currency Translation Gains (Losses) [Roll Forward] | |||
Accumulated foreign currency translation gains (losses), beginning of period | $ (89,824) | $ (127,433) | $ (127,433) |
Foreign currency translation gain (loss) | 5,774 | 5,730 | |
Income tax benefit (expense) on foreign currency translation gain (loss) | (22) | (643) | |
Less: foreign currency translation gain (loss) attributable to non-controlling interest | (243) | 104 | |
Accumulated foreign currency translation gains (losses), end of period | (83,829) | (122,450) | (89,824) |
Accumulated Amortization of Actuarial Net Losses [Roll Forward] | |||
Accumulated pension and other post-retirement adjustments, beginning of period | (20,328) | (21,553) | (21,553) |
Amortization of actuarial net losses | 300 | 292 | |
Income tax benefit (expense) on amortization of actuarial net losses | (78) | (114) | |
Accumulated pension and other post-retirement adjustments | (20,106) | (21,375) | (20,328) |
Accumulated other comprehensive income (loss) | (103,935) | (143,825) | (110,152) |
Other comprehensive income (loss), net of tax | 5,974 | 5,265 | $ 39,586 |
Less: other comprehensive income (loss) attributable to non-controlling interest | (243) | 104 | |
Other comprehensive income (loss) attributable to Masonite | $ 6,217 | $ 5,161 |
Supplemental Cash Flow Inform72
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2018 | Apr. 02, 2017 | |
Transactions involving cash: | ||
Interest paid | $ 17,337 | $ 13,592 |
Interest received | 400 | 54 |
Income taxes paid | 1,583 | 2,763 |
Income tax refunds | 70 | 13 |
Non-cash transactions: | ||
Property, plant and equipment additions in accounts payable | $ 2,949 | $ 3,984 |
Supplemental Cash Flow Inform73
Supplemental Cash Flow Information Cash, cash equivalents and restricted cash (Details) - USD ($) $ in Thousands | Apr. 01, 2018 | Dec. 31, 2017 | Apr. 02, 2017 | Jan. 01, 2017 |
Supplemental Cash Flow Elements [Abstract] | ||||
Cash and cash equivalents | $ 37,651 | $ 176,669 | ||
Restricted cash | 11,220 | 11,895 | ||
Total cash, cash equivalents and restricted cash | $ 48,871 | $ 188,564 | $ 46,683 | $ 83,910 |
Variable Interest Entity (Detai
Variable Interest Entity (Details) - USD ($) $ in Thousands | Apr. 01, 2018 | Dec. 31, 2017 |
Variable Interest Entity [Line Items] | ||
Current assets | $ 617,482 | $ 721,870 |
Property, plant and equipment, net | 585,225 | 573,559 |
Long-term deferred income taxes | 27,715 | 29,899 |
Other assets, net | 25,789 | 22,687 |
Current liabilities | (227,200) | (222,125) |
Other long-term liabilities | (35,415) | (35,754) |
Net assets of the VIE consolidated by Masonite | (706,561) | (722,629) |
Variable Interest Entity, Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Current assets | 9,075 | 7,213 |
Property, plant and equipment, net | 10,731 | 11,344 |
Long-term deferred income taxes | 6,550 | 5,472 |
Other assets, net | 3,442 | 3,386 |
Current liabilities | (2,419) | (2,326) |
Other long-term liabilities | (1,782) | (1,699) |
Non-controlling interest | (4,015) | (4,029) |
Net assets of the VIE consolidated by Masonite | $ 21,582 | $ 19,361 |
Variable Interest Entity (Narra
Variable Interest Entity (Narrative) (Details) $ in Thousands | Apr. 01, 2018USD ($) | Dec. 31, 2017USD ($) |
Variable Interest Entity [Line Items] | ||
Cash and cash equivalents | $ 37,651 | $ 176,669 |
Variable Interest Entity, Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Number of variable interest entities | 1 | 1 |
Cash and cash equivalents | $ 4,700 | $ 3,200 |
Fair Value of Financial Instr76
Fair Value of Financial Instruments (Details) - Senior Notes - Fair Value, Inputs, Level 2 - USD ($) $ in Millions | Apr. 01, 2018 | Dec. 31, 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 | $ 642.5 | $ 653.6 |
Reported Value Measurement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Estimated fair value of senior notes | $ 624.2 | $ 624.1 |