Document and Entity Information
Document and Entity Information Document - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 30, 2018 | Feb. 21, 2019 | Jul. 01, 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-K | ||
Document Period End Date | Dec. 30, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 25,492,498 | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 1.9 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net sales | $ 2,170,103 | $ 2,032,925 | $ 1,973,964 |
Cost of goods sold | 1,734,797 | 1,625,942 | 1,564,319 |
Gross profit | 435,306 | 406,983 | 409,645 |
Selling, general and administration expenses | 266,193 | 247,917 | 260,864 |
Restructuring costs | 1,624 | 850 | 1,445 |
Asset impairment | 5,243 | 0 | 1,511 |
Loss (gain) on disposal of subsidiaries | 0 | 212 | (6,575) |
Operating income | 162,246 | 158,004 | 152,400 |
Interest expense, net | 39,008 | 30,153 | 28,178 |
Loss on extinguishment of debt | 5,414 | 0 | 0 |
Other income, net of expense | 2,533 | 1,570 | 1,707 |
Income before income tax expense | 120,357 | 129,421 | 125,929 |
Income tax expense (benefit) | 23,813 | (27,560) | 21,787 |
Net income | 96,544 | 156,981 | 104,142 |
Less: net income attributable to non-controlling interest | 3,834 | 5,242 | 5,520 |
Net income attributable to Masonite | $ 92,710 | $ 151,739 | $ 98,622 |
Earnings (loss) per common share attributable to Masonite: | |||
Basic earnings per common share attributable to Masonite (in dollars per share) | $ 3.38 | $ 5.18 | $ 3.25 |
Diluted earnings per common share attributable to Masonite (in dollars per share) | $ 3.33 | $ 5.09 | $ 3.17 |
Other comprehensive income (loss): | |||
Net income | $ 96,544 | $ 156,981 | $ 104,142 |
Foreign currency translation gain (loss) | (40,880) | 38,970 | (37,097) |
Pension and other post-retirement adjustment | (4,754) | 529 | (5,941) |
Amortization of actuarial net losses | 1,291 | 1,113 | 1,070 |
Income tax benefit (expense) related to other comprehensive income (loss) | 742 | (1,026) | 1,155 |
Other comprehensive income (loss), net of tax: | (43,601) | 39,586 | (40,813) |
Comprehensive income | 52,943 | 196,567 | 63,329 |
Less: comprehensive income attributable to non-controlling interest | 3,000 | 5,994 | 5,745 |
Comprehensive income attributable to Masonite | $ 49,943 | $ 190,573 | $ 57,584 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 115,656 | $ 176,669 |
Restricted cash | 10,485 | 11,895 |
Accounts receivable, net | 283,580 | 269,235 |
Inventories, net | 250,407 | 234,042 |
Prepaid expenses | 32,970 | 27,665 |
Income taxes receivable | 3,495 | 2,364 |
Total current assets | 696,593 | 721,870 |
Property, plant and equipment, net | 609,753 | 575,492 |
Investment in equity investees | 13,474 | 11,310 |
Goodwill | 180,297 | 138,449 |
Intangible assets, net | 212,045 | 182,484 |
Deferred income taxes | 28,509 | 29,899 |
Other assets | 37,794 | 20,754 |
Total assets | 1,778,465 | 1,680,258 |
Current liabilities: | ||
Accounts payable | 96,362 | 94,497 |
Accrued expenses | 147,345 | 126,759 |
Income taxes payable | 1,599 | 869 |
Total current liabilities | 245,306 | 222,125 |
Long-term debt | 796,398 | 625,657 |
Deferred income taxes | 82,122 | 60,820 |
Other liabilities | 32,334 | 35,754 |
Total liabilities | 1,156,160 | 944,356 |
Commitments and Contingencies (Note 9) | ||
Equity: | ||
Share capital: unlimited shares authorized, no par value, 25,835,664 and 28,369,877 shares issued and outstanding as of December 30, 2018, and December 31, 2017, respectively | 575,207 | 624,403 |
Additional paid-in capital | 218,988 | 226,528 |
Accumulated deficit | (30,836) | (18,150) |
Accumulated other comprehensive loss | (152,919) | (110,152) |
Total equity attributable to Masonite | 610,440 | 722,629 |
Equity attributable to non-controlling interests | 11,865 | 13,273 |
Total equity | 622,305 | 735,902 |
Total liabilities and equity | $ 1,778,465 | $ 1,680,258 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - shares | Dec. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Shares issued | 25,835,664 | 28,369,877 |
Shares outstanding | 25,835,664 | 28,369,877 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - 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 | As Previously Reported | As Previously ReportedAccumulated Deficit | As Previously ReportedTotal Equity Attributable to Masonite |
Opening Balance, Shares at Jan. 03, 2016 | 30,427,865 | |||||||||
Opening Balance, Value at Jan. 03, 2016 | $ 685,726 | $ 663,600 | $ 231,363 | $ (114,468) | $ (107,948) | $ 672,547 | $ 13,179 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 104,142 | 98,622 | 98,622 | 5,520 | ||||||
Other comprehensive income, net of tax | (40,813) | (41,038) | (41,038) | 225 | ||||||
Dividends to non-controlling interests | (6,032) | 0 | (6,032) | |||||||
Share based compensation expense | 18,790 | 18,790 | 18,790 | |||||||
Common shares issued for delivery of share based awards, Shares | 366,556 | |||||||||
Common shares issued for delivery of share based awards, Value | 0 | $ 7,901 | (7,901) | 0 | ||||||
Common shares withheld to cover income taxes payable due to delivery of share based awards | (4,210) | (4,210) | (4,210) | |||||||
Common shares issued under employee stock purchase plan, Shares | 17,469 | |||||||||
Common shares issued under employee stock purchase plan, Value | 888 | $ 1,090 | (202) | 888 | ||||||
Common shares issued for exercise of warrants, Shares | 630,951 | |||||||||
Common shares issued for exercise of warrants, Value | 10,487 | $ 13,401 | (2,914) | 10,487 | ||||||
Common shares repurchased and retired, Shares | (1,668,057) | |||||||||
Common shares repurchased and retired, Value | (109,202) | $ (35,985) | (73,217) | (109,202) | ||||||
Ending Balance, Shares at Jan. 01, 2017 | 29,774,784 | |||||||||
Ending Balance, Value at Jan. 01, 2017 | $ 650,007 | 234,926 | (148,986) | 12,892 | $ 659,776 | $ (89,063) | $ 646,884 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 156,981 | 151,739 | 151,739 | 5,242 | ||||||
Other comprehensive income, 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, Shares | 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 | 96,544 | 92,710 | 92,710 | 3,834 | ||||||
Other comprehensive income, net of tax | (43,601) | (42,767) | (42,767) | (834) | ||||||
Dividends to non-controlling interests | (4,408) | 0 | (4,408) | |||||||
Share based compensation expense | 7,681 | 7,681 | 7,681 | |||||||
Common shares issued for delivery of share based awards, Shares | 223,487 | |||||||||
Common shares issued for delivery of share based awards, Value | 0 | $ 11,375 | (11,375) | 0 | ||||||
Common shares withheld to cover income taxes payable due to delivery of share based awards | (3,743) | (3,743) | (3,743) | |||||||
Common shares issued under employee stock purchase plan, Shares | 13,984 | |||||||||
Common shares issued under employee stock purchase plan, Value | 846 | $ 949 | (103) | 846 | ||||||
Common shares repurchased and retired, Shares | (2,771,684) | |||||||||
Common shares repurchased and retired, Value | $ (166,916) | $ (61,520) | (105,396) | (166,916) | ||||||
Ending Balance, Shares at Dec. 30, 2018 | 25,835,664 | 25,835,664 | ||||||||
Ending Balance, Value at Dec. 30, 2018 | $ 622,305 | $ 575,207 | $ 218,988 | $ (30,836) | $ (152,919) | $ 610,440 | $ 11,865 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Cash flows from operating activities: | |||
Net income | $ 96,544 | $ 156,981 | $ 104,142 |
Adjustments to reconcile net income to net cash flow provided by operating activities: | |||
Loss (gain) on disposal of subsidiaries | 0 | 212 | (6,575) |
Loss on extinguishment of debt | 5,414 | 0 | 0 |
Depreciation | 59,089 | 57,528 | 57,604 |
Amortization | 28,583 | 24,375 | 24,727 |
Share based compensation expense | 7,681 | 11,644 | 18,790 |
Deferred income taxes | 10,563 | (34,230) | 12,918 |
Unrealized foreign exchange loss | 700 | 1,496 | 829 |
Share of income from equity investees, net of tax | (2,164) | (2,008) | (2,183) |
Dividend from equity investee | 0 | 0 | 1,733 |
Pension and post-retirement funding, net of expense | (7,112) | (6,806) | (6,276) |
Non-cash accruals and interest | 857 | 1,226 | 2,612 |
Loss on sale of property, plant and equipment | 3,470 | 1,893 | 2,111 |
Asset impairment | 5,243 | 0 | 1,511 |
Accounts receivable | (4,543) | (15,926) | (29,514) |
Inventories | (1,192) | 692 | (23,022) |
Prepaid expenses | (5,316) | (2,026) | (2,102) |
Accounts payable and accrued expenses | 11,909 | (15,809) | 16,560 |
Other assets and liabilities | (6,494) | (5,761) | 165 |
Net cash flow provided by (used in) operating activities | 203,232 | 173,481 | 174,030 |
Net Cash Provided by (Used in) Investing Activities [Abstract] | |||
Additions to property, plant and equipment | (82,380) | (73,782) | (82,287) |
Cash used in acquisitions, net of cash acquired | (157,363) | (13,813) | (8,551) |
Issuance notes receivable | (12,000) | 0 | 0 |
Cash proceeds from sale of subsidiaries, net of cash disposed | 0 | 0 | 15,103 |
Proceeds from sale of property, plant and equipment | 1,353 | 1,114 | 1,268 |
Other investing activities | (4,087) | (3,653) | (2,449) |
Net cash used in investing activities | (254,477) | (90,134) | (76,916) |
Net Cash Provided by (Used in) Financing Activities [Abstract] | |||
Proceeds from issuance of long-term debt | 300,000 | 156,746 | 390 |
Repayments of long-term debt | (125,363) | (422) | (1,071) |
Payment for debt extinguishment costs | (5,274) | 0 | 0 |
Payment of debt issuance costs | (4,344) | (2,141) | 0 |
Tax withholding on share based awards | (3,743) | (7,466) | (4,210) |
Distributions to non-controlling interests | (4,408) | (5,613) | (6,032) |
Proceeds from exercise of common stock warrants | 0 | 0 | 10,487 |
Repurchases of common shares | (166,916) | (119,888) | (109,202) |
Net cash flow provided by (used in) financing activities | (10,048) | 21,216 | (109,638) |
Increase (decrease) in cash, cash equivalents and restricted cash | (1,130) | 91 | (5,398) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | (62,423) | 104,654 | (17,922) |
Cash, cash equivalents and restricted cash, beginning of period | 188,564 | 83,910 | 101,832 |
Cash, cash equivalents and restricted cash, at end of period | $ 126,141 | $ 188,564 | $ 83,910 |
Business Overview and Significa
Business Overview and Significant Accounting Policies | 12 Months Ended |
Dec. 30, 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 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 71 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 consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”). These consolidated financial statements include the accounts of Masonite International Corporation, a company incorporated under the laws of British Columbia, and its subsidiaries, as of December 30, 2018 , and December 31, 2017 , and for the years ended December 30, 2018 , December 31, 2017 and January 1, 2017 . 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 and the 52- or 53-week periods are referred to as years. 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, and to discontinued operations, as described below. Changes in Accounting Standards and Policies 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 consolidated statements of comprehensive income, requiring the reclassification of a $1.1 million and $0.5 million benefit for the years ended December 31, 2017, and January 1, 2017, respectively, related to other components of net benefit cost out of previously-presented selling, general and administration expense and into previously-presented other income, net of expense. The effect of this reclassification reduced previously-presented operating income by these amounts for the same periods. 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 consolidated statements of cash flows, which is now being summed with cash and cash equivalents, and had the effect of a $0.3 million and $0.4 million increase to previously-presented cash flow used in investing activities for the years ended December 31, 2017, and January 1, 2017, respectively. 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 year ended December 30, 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 under Summary of Significant Accounting Policies below. Other Recent Accounting Pronouncements not yet Adopted In August 2018, the FASB issued ASU 2018-15, “Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract”. This ASU amends the definition of a hosting arrangement and requires a customer in a cloud computing arrangement that is a service contract to follow the internal-use software guidance in ASC 350-40 “Intangibles-Goodwill and Other-Internal-Use Software” to determine which implementation costs to capitalize as assets or expense as incurred. Capitalized implementation costs related to a hosting arrangement that is a service contract will be amortized over the term of the hosting arrangement, beginning when the module or component of the hosting arrangement is ready for its intended use. The guidance is effective for annual periods beginning after December 15, 2019, and interim periods within those annual periods; early adoption is permitted and either retrospective or prospective application is required for all implementation costs incurred after the date of adoption. We plan to adopt this guidance prospectively as of December 31, 2018, the beginning of fiscal year 2019, and we do not expect that the adoption will have any material impact on our results of operations. In January 2017, the FASB issued ASU 2017-04, "Simplifying the Test for Goodwill Impairment", which amends ASC 350 "Intangibles - Goodwill and Other". This ASU simplifies the accounting for goodwill impairments and allows a goodwill impairment charge to be based upon the amount of a reporting unit's carrying value in excess of its fair value; thus, eliminating what is currently known as "Step 2" under the current guidance. This ASU is effective for annual periods beginning after December 15, 2019, and interim periods within those annual periods; early adoption is permitted and prospective application is required. We plan to adopt this guidance prospectively as of December 31, 2018, the beginning of fiscal year 2019, and we do not expect the adoption to have a material impact on our financial statements. In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)", which will replace the existing guidance in ASC 840, "Leases." This standard was supplemented by ASUs 2018-10 and 2018-11 in July 2018. The updated standards aim to increase transparency and comparability among organizations by requiring lessees to recognize right of use assets and lease liabilities on the balance sheet and requiring disclosure of key information about leasing arrangements. The transition option in ASU 2018-11 allows entities to not apply the standards to the comparative periods they present in their financial statements in the year of adoption. These ASUs are effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods; early adoption is permitted. We will adopt these standards as of December 31, 2018, the beginning of fiscal year 2019, and will apply the standards prospectively. We plan to elect the package of practical expedients permitted under the transition guidance of the new standards, which allows us to not reassess whether any expired or existing contracts contain leases, allows us to carry forward the historical lease classification and permits us to exclude from our assessment initial direct costs for any existing leases. We will also make an accounting policy election to exclude leases with an initial term of twelve months or less from our transition adjustment. Lease payments will be recognized in the consolidated statements of comprehensive income on a straight-line basis over the lease term. We have completed our procedures relating to the adoption of the standard, which will result in the recognition of a right of use asset and lease liability for our operating leases of $108.0 million and $113.9 million , respectively, as of December 31, 2018. The difference between the opening right of use asset and lease liability amounts is due to the reclassification of the existing deferred rent liability balance against the opening right of use assets to which it related. Our operating leases include leases for real estate and machinery and equipment and we have no material finance leases. We do not believe the standard will materially affect our consolidated net income, liquidity or compliance with our debt covenants under our current agreements. Summary of Significant Accounting Policies (a) Principles of consolidation: These consolidated financial statements include the accounts of Masonite and our subsidiaries and the accounts of any variable interest entities for which we are the primary beneficiary. Intercompany accounts and transactions have been eliminated upon consolidation. The results of subsidiaries acquired during the periods presented are consolidated from their respective dates of acquisition using the acquisition method. Subsidiaries are prospectively deconsolidated as of the date when we no longer have effective control of the entity. (b) Translation of consolidated financial statements into U.S. dollars: These consolidated financial statements are expressed in U.S. dollars. The accounts of the majority of our self-sustaining foreign operations are maintained in functional currencies other than the U.S. dollar. Assets and liabilities for these subsidiaries have been translated into U.S. dollars at the exchange rates prevailing at the end of the period and results of operations at the average exchange rates for the period. Unrealized exchange gains and losses arising from the translation of the financial statements of our non-U.S. functional currency operations are accumulated in the cumulative translation adjustments account in accumulated other comprehensive loss. For our foreign subsidiaries where the U.S. dollar is the functional currency, all foreign currency-denominated accounts are remeasured into U.S. dollars. Unrealized exchange gains and losses arising from remeasurements of foreign currency-denominated assets and liabilities are included within other income, net of expense, in the consolidated statements of comprehensive income. Gains and losses arising from international intercompany transactions that are of a long-term investment nature are reported in the same manner as translation gains and losses. Realized exchange gains and losses are included in net income for the periods presented. (c) Cash and cash equivalents: Cash includes cash equivalents which are short-term highly liquid investments with original maturities of three months or less. (d) Restricted cash: Restricted cash includes cash we have placed as collateral for letters of credit. (e) Accounts receivable: We record accounts receivable as our products are received by our customers. Our customers are primarily retailers, distributors and contractors. We record an allowance for doubtful accounts for known collectability issues, as such issues relate to specific transactions or customer balances. When it becomes apparent, based on age or customer circumstances, that such amounts will not be collected, they are expensed as bad debt and payments subsequently received are credited to the bad debt expense account, included within selling, general and administration expense in the consolidated statements of comprehensive income. Generally, we do not require collateral for our accounts receivable. (f) Inventories: Raw materials are valued at the lower of cost or market value, where market value is determined using replacement cost. Finished goods are valued at the lower of cost or net realizable value. Cost is determined on a first in, first out basis. In determining the net realizable value, we consider factors such as yield, turnover, expected future demand and past experience. The cost of inventories includes all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition. The costs of conversion of inventories include costs directly related to the units of production, such as direct labor. They also include a systematic allocation of fixed and variable production overheads that are incurred in converting raw materials into finished goods. Fixed production overheads are those indirect costs of production that remain relatively constant regardless of the volume of production, such as depreciation and maintenance of factory buildings and equipment, and the cost of factory management and administration. Variable production overheads are those indirect costs of production that vary directly, or nearly directly, with the volume of production, such as indirect materials and indirect labor. To determine the cost of inventory, we allocate fixed expenses to the cost of production based on the normal capacity, which refers to a range of production levels and is considered the production expected to be achieved over a number of periods or seasons under normal circumstances, taking into account the loss of capacity resulting from planned maintenance. Fixed overhead costs allocated to each unit of production are not increased due to abnormally low production. Those excess costs are recognized as a current period expense. When a production facility is completely shut down temporarily, it is considered idle, and all related expenses are charged to cost of goods sold. (g) Property, plant and equipment Property, plant and equipment are stated at cost. Depreciation is recorded based on the carrying values of buildings, machinery and equipment using the straight-line method over the estimated useful lives set forth as follows: Useful Life (Years) Buildings 20 - 40 Machinery and equipment Tooling 10 - 25 Machinery and equipment 5 - 25 Molds and dies 12 - 25 Office equipment, fixtures and fittings 3 - 12 Information technology systems 5 - 15 Improvements and major maintenance that extend the life of an asset are capitalized; other repairs and maintenance are expensed as incurred. When assets are retired or otherwise disposed, their carrying values and accumulated depreciation are removed from the accounts. Property, plant and equipment are tested for impairment when events or changes in circumstances indicate that the carrying value of an asset or asset group may not be recoverable. An impairment loss is recognized when the carrying amount of an asset or asset group being tested for recoverability exceeds the sum of the undiscounted cash flows expected from its use and disposal. Impairments are measured as the amount by which the carrying amount of the asset or asset group exceeds its fair value, as determined using a discounted cash flows approach when quoted market prices are not available. (h) Goodwill: We use the acquisition method of accounting for all business combinations, and we evaluate all business combinations for intangible assets that should be recognized apart from goodwill. Goodwill adjustments are recorded for the effect on goodwill of changes to net assets acquired during the measurement period (up to one year from the date of acquisition) for new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date. Goodwill is not amortized, but instead is tested annually for impairment on the last day of fiscal November, or more frequently if events or changes in circumstances indicate the carrying amount may not be recoverable. The test for impairment is performed at the reporting unit level by comparing the reporting unit’s carrying amount to its fair value. Possible impairment in goodwill is first analyzed using qualitative factors such as macroeconomic and market conditions, changing costs and actual and projected performance, amongst others, to determine whether it is more likely than not that the book value of the reporting unit exceeds its fair value. If it is determined more likely than not that the book value exceeds fair value, a quantitative analysis is performed to test for impairment. When quantitative steps are determined necessary, the fair values of the reporting units are estimated through the use of discounted cash flow analysis and market multiples. If the carrying amount exceeds fair value, then goodwill is impaired. Any impairment in goodwill is measured by allocating the fair value of the reporting unit in a manner similar to a purchase price allocation and comparing the notional goodwill from the fair value allocation to the carrying value of the goodwill. There were no impairment charges recorded against goodwill in any period presented. When developing our discounted cash flow analyses, a number of significant assumptions and estimates are involved to forecast operating cash flows, including future sales growth, margin growth, benefits from restructuring initiatives, income tax rates, capital spending, business initiatives and working capital changes. These assumptions may vary significantly among the reporting units. Operating cash flow forecasts are based on approved operating plans for the early years and historical relationships and long-term economic outlooks for our industry in later years. The weighted average cost of capital (“WACC”) rate is estimated for each specific reporting unit. Due to the many variables inherent in the estimation of a reporting unit’s fair value and the relative size of our recorded goodwill, differences in assumptions may have a material effect on the results of our impairment analyses. The performance of our 2018 annual impairment test based on the inputs outlined above did not result in any impairment of our goodwill. The resulting fair values of each reporting unit tested based upon such inputs exceeded their respective carrying values by greater than 10%. Further, had the WACC rate of each of our reporting units been hypothetically increased by 100 basis points, the fair values of each reporting unit would still have exceeded their respective carrying values. To the extent that future operating results of the reporting units do not meet the forecasted cash flow projections, we can provide no assurance that a future goodwill impairment charge would not be incurred. There were no impairment charges recorded against goodwill in 2016 or 2017 and we have not materially changed our methodology for goodwill impairment testing for the years presented. (i) Intangible assets: Intangible assets with definite lives include customer relationships, non-compete agreements, patents, system software development, supply agreements and acquired trademarks and tradenames. Definite lived intangible assets are amortized over their estimated useful lives. Information pertaining to the estimated useful lives of intangible assets is as follows: Estimated Useful Life Customer relationships Over expected relationship period, not exceeding 10 years Non-compete agreements Straight-line over life of the agreement Patents Over expected useful life, not exceeding 17 years System software development Over expected useful life Supply agreements Straight-line over life of the agreement Acquired trademarks and tradenames Straight-line over expected useful life Amortizable intangible assets are tested for impairment whenever events or changes in circumstances indicate that the carrying value may be greater than fair value. An impairment loss is recognized when the estimate of undiscounted future cash flows generated by such assets is less than the carrying amount. Measurement of the impairment loss is based on the fair value of the asset. Fair value is measured using discounted cash flows. Indefinite lived intangible assets are not amortized, but instead are tested for impairment annually on the last day of fiscal November, or more frequently if events or circumstances indicate the carrying value may exceed the fair value. (j) Income taxes: We use the asset and liability method of accounting for income taxes. Under the asset and liability method, deferred tax assets and liabilities are recognized for the deferred tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities due to a change in tax rates is recognized in income in the period that includes the date of enactment. A valuation allowance is recorded to reduce deferred tax assets to an amount that is anticipated to be realized on a more likely than not basis. We account for uncertain taxes in accordance with ASC 740, “Income Taxes”. The initial benefit recognition model follows a two-step approach. First we evaluate if the tax position is more likely than not of being sustained if audited based solely on the technical merits of the position. Second, we measure the appropriate amount of benefit to recognize. This is calculated as the largest amount of tax benefit that has a greater than 50% likelihood of ultimately being realized upon settlement. Subsequently at each reporting date, the largest amount that has a greater than 50% likelihood of ultimately being realized, based on information available at that date, will be measured and recognized. We recognize interest and penalties related to unrecognized tax benefits within the income tax expense line in the consolidated statements of comprehensive income. Accrued interest and penalties are included within the related tax liability line in the consolidated balance sheets. (k) Employee future benefits: We maintain defined benefit pension plans. Earnings are charged with the cost of benefits earned by employees as services are rendered. The cost reflects management’s best estimates of the pension plans’ expected investment yields, wage and salary escalation, mortality of members, terminations and the ages at which members will retire. Changes in these assumptions could impact future pension expense. Service cost components are recognized within cost of goods sold and non-service cost components are recognized within other income, net of expense, in the consolidated statements of comprehensive income. The excess of the net actuarial gain (loss) over 10% of the greater of the benefit obligation or fair value of plan assets at the beginning of the year is amortized over the average remaining service lives of the members. Assets are valued at fair value for the purpose of calculating the expected return on plan assets. Past service costs arising from plan amendments are amortized on a straight-line basis over the average remaining service period of employees active at the date of amendment. When a restructuring of a benefit plan gives rise to both a curtailment and a settlement of obligations, the curtailment is accounted for prior to the settlement. Curtailment gains are offset against unrecognized losses and any excess gains and all curtailment losses are recorded in the period in which the curtailment occurs. (l) Restructuring costs: All salary-related severance benefits are accrued and expensed when a plan has been put into place, the plan has received approval from the appropriate level of management and the benefit is probable and reasonably estimable, which is generally when the decision to terminate the employee is made by management of sufficient authority. A liability and expense are recorded for termination benefits based on their fair value when it is probable that employees will be entitled to the benefits, and the amount can be reasonably estimated. This occurs when management approves and commits us to the obligation, management’s termination plan specifically identifies all significant actions to be taken, actions required to fulfill management’s plan are expected to begin as soon as possible and significant changes to the plan are not likely. All salary-related non-contractual benefits are accrued and expensed at fair value at the communication date. In addition to salary-related costs, we incur other restructuring costs when facilities are closed or capacity is realigned within the organization. A liability and expense are recorded for contractual exit activities when we terminate the contract within the provisions of the agreement, generally by way of written notice to the counterparty. For non-contractual exit activities, a liability and expense are measured at fair value in the period in which the liability is incurred. Restructuring-related costs are presented separately in the consolidated statements of comprehensive income whereas non-restructuring severance benefits are charged to cost of goods sold or selling, general and administration expense depending on the nature of the job responsibilities. (m) Financial instruments: We have applied a framework consistent with ASC 820, “Fair Value Measurement and Disclosure”, and have disclosed all financial assets and liabilities measured at fair value and non-financial assets and liabilities measured at fair value on a non-recurring basis (at least annually). We classify and disclose assets and liabilities carried at fair value in one of the following three categories: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs that are not corroborated by market data. The estimated fair value of a financial instrument is the amount at which the instrument could be exchanged in a current transaction between willing parties, other than a forced or liquidation sale. These estimates, although based on the relevant market information about the financial instrument, are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. (n) Share based compensation expense: We have a share based compensation plan, which is described in detail in Note 11. We apply the fair value method of accounting using comprehensive valuation models, including the Black-Scholes-Merton option pricing model, to determine the compensation expense. (o) 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 consolidated statements of comprehensive income. (p) Product warranties: We warrant certain qualitative attributes of our door products. We have recorded provisions for estimated warranty and related costs within accrued expenses on the consolidated balance sheets, based on historical experience and we periodically adjust these provisions to reflect actual experience. The rollforward of our warranty provision is as follows for the periods indicated: Year Ended (In thousands) December 30, 2018 December 31, 2017 January 1, 2017 Balance at beginning of period $ 2,189 $ 2,717 $ 3,318 Additions charged to expense 6,965 5,715 3,219 Deductions (4,884 ) (6,243 ) (3,820 ) Balance at end of period $ 4,270 $ 2,189 $ 2,717 (q) Vendor rebates: We account for cash consideration received from a vendor as a reduction of cost of goods sold and inventory, in the consolidated statements of comprehensive income and consolidated balance sheets, respectively. The cash consideration received represents agreed-upon vendor rebates that are earned in the normal course of operations. (r) Advertising costs: We recognize advertising costs as they are incurred. Advertising costs incurred primarily relate to tradeshows and are included within selling, general and administration expense in the consolidated statements of comprehensive income. Advertising costs were $12.6 million , $12.9 million and $9.3 million in the years ended December 30, 2018 , December 31, 2017 , and January 1, 2017 , respectively. (s) Research and development costs: We recognize research and development costs as they are incurred. Research and development costs incurred primarily relate to the development of new products and the improvement of manufacturing processes, and are primarily included within cost of goods sold in the consolidated statements of comprehensive income. These costs exclude the significant investments in other areas such as advanced automation and e-commerce. Research and development costs were $7.3 million , $7.5 million and $6.7 million in the years ended December 30, 2018 , December 31, 2017 , and January 1, 2017 , respectively. (t) Insurance losses and proceeds: All involuntary conversions of property, plant and equipment are recorded as losses within loss (gain) on disposal of property, plant and equipment, which is included within selling, general and administration expense in the consolidated statements of comprehensive income and as reductions to property, plant and equipment in the consolidated balance sheets. Any subsequent proceeds received for insured losses of property, plant and equipment are also recorded as gains within loss (gain) in disposal of property, plant and equipment, and are classified as cash flows from investing activities in the consolidated statements of cash flows in the period in which the cash |
Acquisitions and Dispositions
Acquisitions and Dispositions | 12 Months Ended |
Dec. 30, 2018 | |
Business Combinations [Abstract] | |
Acquisitions and dispositions | Acquisitions and Dispositions 2018 Acquisitions On November 1, 2018, we completed the acquisition of the operating assets of Bridgewater Wholesalers Inc. (“BWI”) for cash consideration of $22.1 million , net of cash acquired. BWI is headquartered in Branchburg, New Jersey, and is a fabricator and distributor of residential interior and exterior door systems, supporting customers in the Mid-Atlantic and Northeastern United States. Their product offerings include residential interior and exterior doors, commercial doors and hardware as well as value added pre-finishing services. The excess purchase price over the fair value of net assets acquired of $3.3 million was allocated to goodwill. The goodwill principally represents anticipated synergies to be gained from the integration into our existing North American Residential business and the goodwill is deductible for tax purposes. On June 1, 2018, we completed the acquisition of the operating assets of the wood door companies of AADG, Inc., including the brands Graham Manufacturing Corporation and The Maiman Company (collectively, "Graham & Maiman"). We acquired the operating assets of Graham & Maiman for cash consideration of $39.0 million . Graham & Maiman are based in Mason City, Iowa, and Springfield, Missouri. Graham & Maiman provide the non-residential construction industry with a full range of architectural premium and custom grade flush wood doors, architectural stile and rail wood doors, thermal-fused flush wood doors and wood door frames. The excess purchase price over the fair value of net assets acquired of $11.0 million was allocated to goodwill. The goodwill principally represents anticipated synergies to be gained from the integration into our existing Architectural business and the goodwill is deductible for tax purposes. 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 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 $33.6 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 2018 Acquisitions are as follows: (In thousands) BWI Graham & Maiman DW3 Total 2018 Acquisitions Accounts Receivable $ 9,215 $ — $ 8,590 $ 17,805 Inventory 10,736 6,090 5,059 21,885 Property, plant and equipment 2,222 19,557 8,196 29,975 Goodwill 3,349 10,996 33,623 47,968 Intangible assets 2,970 2,750 62,873 68,593 Accounts payable and accrued expenses (6,645 ) (426 ) (10,418 ) (17,489 ) Deferred income taxes — — (11,546 ) (11,546 ) Other assets and liabilities, net 240 — (68 ) 172 Cash consideration, net of cash acquired $ 22,087 $ 38,967 $ 96,309 $ 157,363 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. The fair values of tangible assets acquired and liabilities assumed from the BWI 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 area of the preliminary estimate which is not yet finalized relates to deferred income taxes, which could also impact goodwill during the measurement period. We finalized the Graham & Maiman and DW3 purchase price allocations during the year ended December 30, 2018. The gross contractual value of acquired trade receivables was $9.3 million and $9.1 million for the BWI and DW3 acquisitions, respectively. Intangible assets acquired from the 2018 Acquisitions consist of the following: (In thousands) BWI Expected Useful Life (Years) Graham & Maiman Expected Useful Life (Years) DW3 Expected Useful Life (Years) Customer relationships $ 1,200 10.0 $ 2,400 10.0 $ 49,554 10.0 Trademarks and trade names 900 10.0 350 1.5 11,785 10.0 Patents — — 1,420 10.0 Other 870 2.2 — 114 3.0 Total intangible assets acquired $ 2,970 $ 2,750 $ 62,873 The following schedule represents the amounts of net sales and net income (loss) attributable to Masonite from the 2018 Acquisitions which have been included in the consolidated statements of comprehensive income for the periods indicated subsequent to the acquisition date. Year Ended December 30, 20 18 (In thousands) BWI Graham & Maiman DW3 Total 2018 Acquisitions Net sales $ 13,168 $ 38,901 $ 68,474 $ 120,543 Net income (loss) attributable to Masonite (1,231 ) 314 6,712 5,795 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 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 acquisitions during 2017 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 cost approach and the market approach. Intangible assets acquired from A&F consist of customer relationships and are being amortized over the weighted average amortization period of ten years . The intangible assets are not expected to have any residual value. The gross contractual value of acquired trade receivables was $2.2 million for the A&F acquisition. The following schedule represents the amounts of net sales and net income attributable to Masonite from the A&F acquisition which have been included in the consolidated statements of comprehensive income for the periods indicated subsequent to the acquisition date. Year Ended (In thousands) December 30, 2018 December 31, 2017 Net sales $ 15,540 $ 3,883 Net income attributable to Masonite 1,684 825 2016 Acquisition On November 3, 2016, we completed the acquisition of FyreWerks, Inc. (“FyreWerks”), based in Westminster, Colorado. We acquired 100% of the equity interests in FyreWerks for consideration of $8.0 million , net of cash acquired. FyreWerks manufactures certified fire door and frame cores for use with architectural stile and rail wood panel doors and door frames. The excess purchase price over the fair value of net assets acquired of $7.3 million was allocated to goodwill in our Architectural segment. The goodwill principally represents anticipated synergies from FyreWerks' integration into our existing Architectural door business. Under Section 338 of the Internal Revenue Code, the acquisition was treated as if it was an asset purchase. Generally, the tax basis of the assets will equal the fair market value at the time of the acquisition and the goodwill is deductible for tax purposes. The purchase price allocation, net sales and net income attributable to Masonite for FyreWerks are not presented as they were not material for any period presented. 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. Pro forma information relating to the FyreWerks acquisition has been excluded as it is not materially different from amounts reported. The pro forma results have been calculated after adjusting the results of the acquired 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. Year Ended December 30, 20 18 (In thousands, except per share amounts) Masonite BWI Graham & Maiman DW3 Intercompany Eliminations Pro Forma Net sales $ 2,170,103 $ 77,110 $ 26,887 $ 4,918 $ (32,720 ) $ 2,246,298 Net income attributable to Masonite 92,710 436 89 81 — 93,316 Basic earnings per common share $ 3.38 $ 3.40 Diluted earnings per common share 3.33 3.35 Year Ended December 31, 2017 (In thousands, except per share amounts) Masonite BWI Graham & Maiman DW3 A&F Intercompany Eliminations Pro Forma Net sales $ 2,032,925 104,291 65,468 58,086 $ 11,104 $ (43,543 ) $ 2,228,331 Net income attributable to Masonite 151,739 (1,811 ) 145 2,035 1,299 — 153,407 Basic earnings per common share $ 5.18 $ 5.24 Diluted earnings per common share 5.09 5.15 Year Ended January 1, 2017 (In thousands, except per share amounts) Masonite A&F Pro Forma Net sales $ 1,973,964 $ 13,861 $ 1,987,825 Net income attributable to Masonite 98,622 999 99,621 Basic earnings per common share $ 3.25 $ 3.28 Diluted earnings per common share 3.17 3.20 Dispositions Hungary On June 28, 2017, we completed the liquidation of our legal entity in Hungary. As a result, we recognized $0.2 million of cumulative translation loss in loss (gain) on disposal of subsidiaries from accumulated other comprehensive income during the year ended December 31, 2017. Africa During 2016, we received $15.1 million as final pre-tax proceeds from the sale of our equity interest in our South African subsidiary, which had been reflected as a $10.0 million investment in our consolidated balance sheets prior to receipt of proceeds. Upon receipt of these proceeds, our equity interest in our South African subsidiary was eliminated and we accordingly reduced the value of our cost investment in the subsidiary to zero and recorded a gain on disposal of subsidiaries of $5.1 million in the year ended January 1, 2017. Romania On April 22, 2016, we completed the liquidation of our legal entity in Romania. As a result, we recognized a $1.4 million |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Dec. 30, 2018 | |
Receivables [Abstract] | |
Accounts Receivable | Accounts Receivable Our customers consist mainly of wholesale distributors, dealers, and retail home centers. Our ten largest customers accounted for 54.6% and 56.2% of total accounts receivable as of December 30, 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 December 30, 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 . No other individual customer accounted for greater than 10% of the consolidated gross accounts receivable balance at either December 30, 2018 , or December 31, 2017 . The changes in the allowance for doubtful accounts were as follows for the periods indicated: Year Ended (In thousands) December 30, 2018 December 31, 2017 January 1, 2017 Balance at beginning of period $ 1,785 $ 1,010 $ 3,125 Additions charged to expense 676 793 103 Deductions (352 ) (18 ) (2,218 ) Balance at end of period $ 2,109 $ 1,785 $ 1,010 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 who 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 consolidated balance sheets and are included in cash flows from operating activities in the 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 consolidated statements of comprehensive income. |
Inventories
Inventories | 12 Months Ended |
Dec. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories The amounts of inventory on hand were as follows as of the dates indicated: (In thousands) December 30, December 31, Raw materials $ 189,145 $ 172,960 Finished goods 69,026 68,851 Provision for obsolete or aged inventory (7,764 ) (7,769 ) Inventories, net $ 250,407 $ 234,042 We carry an inventory provision which is the result of obsolete or aged inventory. The rollforward of our inventory provision is as follows for the periods indicated: Year Ended (In thousands) December 30, 2018 December 31, 2017 January 1, 2017 Balance at beginning of period $ 7,769 $ 5,747 $ 6,508 Additions charged to expense 3,146 3,283 1,724 Deductions (3,151 ) (1,261 ) (2,485 ) Balance at end of period $ 7,764 $ 7,769 $ 5,747 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 30, 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) December 30, December 31, Land $ 30,653 $ 28,723 Buildings 179,888 176,077 Machinery and equipment 724,431 661,026 Property, plant and equipment, gross 934,972 865,826 Accumulated depreciation (325,219 ) (290,334 ) Property, plant and equipment, net $ 609,753 $ 575,492 Total depreciation expense was $59.1 million , $57.5 million , and $57.6 million for the years ended December 30, 2018 , December 31, 2017 , and January 1, 2017 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 30, 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 January 1, 2017 $ 2,843 $ 32,410 $ 94,033 $ 129,286 Goodwill from 2017 acquisitions — — 5,895 5,895 Foreign exchange fluctuations 24 3,021 223 3,268 December 31, 2017 2,867 35,431 100,151 138,449 Goodwill from 2018 acquisitions 3,349 33,623 10,996 47,968 Foreign exchange fluctuations (27 ) (5,834 ) (259 ) (6,120 ) December 30, 2018 $ 6,189 $ 63,220 $ 110,888 $ 180,297 We performed a quantitative impairment test of each of our reporting units during the fourth quarter of 2018 and determined that goodwill was not impaired. The cost and accumulated amortization values of our intangible assets were as follows as of the dates indicated: December 30, 2018 December 31, 2017 (In thousands) Cost Accumulated Amortization Net Book Value Cost Accumulated Amortization Net Book Value Definite life intangible assets: Customer relationships $ 173,637 $ (81,220 ) $ 92,417 $ 146,802 $ (77,441 ) $ 69,361 Patents 31,363 (21,840 ) 9,523 29,795 (20,250 ) 9,545 Software 32,660 (29,296 ) 3,364 30,274 (28,073 ) 2,201 Trademarks and trade names 33,784 (3,948 ) 29,836 — — — Other 971 (97 ) 874 6,555 (4,926 ) 1,629 Total definite life intangible assets 272,415 (136,401 ) 136,014 213,426 (130,690 ) 82,736 Indefinite life intangible assets: Trademarks and trade names 76,031 — 76,031 99,748 — 99,748 Total intangible assets $ 348,446 $ (136,401 ) $ 212,045 $ 313,174 $ (130,690 ) $ 182,484 During the year ended December 30, 2018 , we reassessed certain trade names that were previously classified as indefinite-lived, and as a result of this assessment, we reclassified $20.7 million of trade names into definite-lived and began to amortize them consistent with their expected useful lives. The remaining increase in definite-lived trademarks and trade names is due to the trade names acquired during the year ended December 30, 2018 , as described in Note 2. Amortization of intangible assets was $27.7 million , $24.2 million and $24.0 million for the years ended December 30, 2018 , December 31, 2017 , and January 1, 2017 respectively. Amortization expense is classified within selling, general and administration expenses in the consolidated statements of comprehensive income. The estimated future amortization of intangible assets with definite lives as of December 30, 2018 , is as follows: (In thousands) Fiscal year: 2019 $ 28,329 2020 22,168 2021 18,569 2022 15,123 2023 13,641 |
Accrued Expenses (Notes)
Accrued Expenses (Notes) | 12 Months Ended |
Dec. 30, 2018 | |
Accrued Expenses [Abstract] | |
Accrued expenses | Accrued Expenses The details of our accrued expenses were as follows as of the dates indicated: (In thousands) December 30, December 31, Accrued payroll $ 39,823 $ 38,296 Accrued rebates 36,711 34,488 Accrued interest 14,570 10,688 Other accruals 56,241 43,287 Total accrued expenses $ 147,345 $ 126,759 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 30, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt (In thousands) December 30, December 31, 5.625% senior unsecured notes due 2023 $ 500,000 $ 625,000 5.75% senior unsecured notes due 2026 300,000 — Unamortized premium on 2023 Notes 3,684 5,714 Debt issuance costs (8,394 ) (6,635 ) Capital lease obligations 13 378 Other long-term debt 1,095 1,200 Total long-term debt $ 796,398 $ 625,657 Interest expense related to our consolidated indebtedness under senior unsecured notes was $38.7 million , $29.7 million and $27.8 million for years ended December 30, 2018 , December 31, 2017 , and January 1, 2017 , respectively. 5.75% Senior Notes due 2026 On August 27, 2018, we issued $300.0 million aggregate principal senior unsecured notes (the “2026 Notes”). The 2026 Notes were issued in a private placement for resale to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and to buyers outside of the United States pursuant to Regulation S under the Securities Act. The 2026 Notes were issued without registration rights and are not listed on any securities exchange. The 2026 Notes bear interest at 5.75% per annum, payable in cash semiannually in arrears on March 15 and September 15 of each year and are due September 15, 2026. The 2026 notes were issued at par. We received net proceeds of $295.7 million after deducting $4.3 million of debt issuance costs. The debt issuance costs were capitalized as a reduction to the carrying value of debt and are being accreted to interest expense over the term of the 2026 Notes using the effective interest method. The net proceeds from issuance of the 2026 Notes were used to redeem $125.0 million aggregate principal amount of the 2023 Notes (as described below), including the payment of related premiums, fees and expenses, with the balance of the proceeds available for general corporate purposes. Subsequent to the closing of the 2026 Notes offering, the 2023 Notes were partially redeemed, with that portion of the notes considered extinguished as of September 12, 2018. Under the terms of the indenture governing the 2023 Notes, we paid the applicable premium of $5.3 million . Additionally, the proportionate shares of the unamortized premium of $1.0 million and unamortized debt issuance costs of $1.1 million relating to the 2023 Notes were written off in conjunction with the partial extinguishment of the 2023 Notes. The resulting loss on extinguishment of debt was $5.4 million and is recorded as part of income (loss) from continuing operations before income tax expense (benefit) in the consolidated statements of comprehensive income. Additionally, the cash payment of interest accrued to, but not including, the redemption date was accelerated to the redemption date. Obligations under the 2026 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 2026 Notes, in whole or in part, at any time on or after September 15, 2021, at the applicable redemption prices specified under the indenture governing the 2026 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 2026 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 2026 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 2026 Notes. In addition, if in the future the 2026 Notes have an investment grade rating from at least two nationally recognized statistical rating organizations, certain of these covenants will be terminated. The indenture governing the 2026 Notes contains customary events of default (subject in certain cases to customary grace and cure periods). As of December 30, 2018 , we were in compliance with all covenants under the indenture governing the 2026 Notes. 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 the $500.0 million aggregate principal of 8.25% senior unsecured notes due 2021 (the "2021 Notes") 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 December 30, 2018 , we were in compliance with all covenants under the indenture governing the 2023 Notes. ABL Facility On April 9, 2015, we and certain of our subsidiaries entered into a $150.0 million asset-based revolving credit facility (the "ABL Facility") maturing on April 9, 2020. The borrowing base is calculated based on a percentage of the value of selected U.S. and Canadian accounts receivable and inventory, less certain ineligible amounts. Obligations under the ABL Facility are secured by a first priority security interest in substantially all of the current assets of Masonite and our subsidiaries. In addition, obligations under the ABL Facility are fully and unconditionally guaranteed, jointly and severally, on a senior secured basis, by certain of our directly or indirectly wholly-owned subsidiaries. Borrowings under the ABL Facility bear interest at a rate equal to, at our option, (i) the Base Rate, Canadian Prime Rate or Canadian Base Rate (each as defined in the Amended and Restated Credit Agreement) plus a margin ranging from 0.25% to 0.75% per annum, or (ii) the Eurodollar Base Rate or BA Rate (each as defined in the Amended and Restated Credit Agreement), plus a margin ranging from 1.25% to 1.75% per annum. In addition to paying interest on any outstanding principal under the ABL Facility a commitment fee is payable on the undrawn portion of the ABL Facility in an amount equal to 0.25% per annum of the average daily balance of unused commitments during each calendar quarter. The ABL Facility contains various customary representations, warranties and covenants by us that, among other things, and subject to certain exceptions, restrict Masonite's ability and the ability of our subsidiaries to: (i) pay dividends on our common shares and make other restricted payments, (ii) make investments and acquisitions, (iii) engage in transactions with our affiliates, (iv) sell assets, (v) merge and (vi) create liens. The Amended and Restated Credit Agreement amended the ABL Facility to, among other things, (i) permit us to incur unlimited unsecured debt as long as such debt does not contain covenants or default provisions that are more restrictive than those contained in the ABL Facility, (ii) permit us to incur debt as long as the pro forma secured leverage ratio is less than 4.5 to 1.0 , and (iii) add certain additional exceptions and exemptions under the restricted payment, investment and indebtedness covenants (including increasing the amount of certain debt permitted to be incurred under an existing exception). As of December 30, 2018 , 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 | 12 Months Ended |
Dec. 30, 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: 2019 $ 24,249 2020 23,904 2021 18,823 2022 14,333 2023 12,389 Thereafter 49,781 Total future minimum lease payments $ 143,479 Total rent expense, including non-cancelable operating leases and month-to-month leases, was $32.3 million , $28.8 million and $26.3 million for years ended December 30, 2018 , December 31, 2017 , and January 1, 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 On October 19, 2018, a purported class action complaint was filed against us and JELD-WEN, Inc. (“Jeld-Wen”) in the United States District Court for the Eastern District of Virginia, Richmond Division, alleging, among other things, that defendants conspired to fix prices on, and to eliminate competition with respect to, interior molded doors. The complaint asserts violations of Section 1 of the Sherman Act and seeks treble damages and costs of suit, including reasonable attorneys’ fees, prejudgment and post-judgment interest, and injunctive relief. On December 11, 2018, a purported class action complaint with substantially similar allegations under various state antitrust or unfair competition laws and the Sherman Act was filed in the United States District Court for the Eastern District of Virginia, Richmond Division, by several individuals and companies purporting to represent classes of certain indirect purchasers of interior molded doors. The complaint seeks damages (including statutory minimum, multiple, or exemplary damages, where available), reasonable attorneys’ fees, prejudgment and post-judgment interest, and injunctive relief. Several other complaints with substantially similar allegations were subsequently filed in the same court by additional plaintiffs who also sought to represent purported classes of direct or indirect purchasers seeking similar damages and relief. These multiple complaints have been consolidated into two proceedings-one for direct purchasers and another for indirect purchasers-both before the same judge in the United States District Court for the Eastern District of Virginia, Richmond Division. On January 17, 2019 we filed a motion to transfer the proceedings from the Eastern District of Virginia to either the Middle District of Florida or Delaware. We intend to move to dismiss all of the claims in both the direct purchaser and end-purchaser complaints. While we intend to defend against these claims vigorously, there can be no assurance that the ultimate resolution of this litigation will not have a material, adverse effect on our consolidated financial condition or results of operations. |
Revenues (Notes)
Revenues (Notes) | 12 Months Ended |
Dec. 30, 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 consolidated balance sheets, and are described in Note 3. Accounts Receivable. There were no other material contract assets or liabilities as of either December 30, 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 years ended December 30, 2018 , December 31, 2017 , or January 1, 2017 |
Share Based Compensation Plans
Share Based Compensation Plans | 12 Months Ended |
Dec. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share Based Compensation Plans | Share Based Compensation Plans Share-based compensation expense was $7.7 million , $11.6 million and $18.8 million for the years ended December 30, 2018 , December 31, 2017 , and January 1, 2017 , respectively. As of December 30, 2018 , the total remaining unrecognized compensation expense related to share based compensation amounted to $10.6 million , which will be amortized over the weighted average remaining requisite service period of 1.4 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 consolidated statements of comprehensive income. All forfeitures are accounted for as they occur. All share based awards are settled through issuance of new shares of our common stock. The share based award agreements contain restrictions on sale or transfer other than in limited circumstances. All other transfers would cause the share based awards to become null and void. Equity Incentive Plan Prior to July 9, 2012 , we had a management equity incentive plan (the "2009 Plan"). The 2009 Plan required granting by June 9, 2012, equity instruments which upon exercise would result in management (excluding directors) owning 9.55% of our common equity ( 3,554,811 shares) on a fully diluted basis, after giving consideration to the potential exercise of warrants and the equity instruments granted to directors. Under the 2009 Plan, we were required to issue equity instruments to directors that represented 0.90% ( 335,004 shares) of the common equity on a fully diluted basis. The requirement for issuance to employees was satisfied in June 2012, and the requirement for issuance to directors was satisfied in July 2009. No awards have been granted under the 2009 Plan since May 30, 2012, and no future awards will be granted under the 2009 Plan; however, all outstanding awards under the 2009 Plan will continue to be governed by their existing terms. Aside from shares issuable for outstanding awards, there are no further shares of common stock available for future issuance under the 2009 Plan. On July 12, 2012 , the Board of Directors adopted the Masonite International Corporation 2012 Equity Incentive Plan, which was amended on June 21, 2013, by our Board of Directors, 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 December 30, 2018 , there were 947,921 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 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 consolidated statements of comprehensive income. 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 consolidated balance sheets. As of December 30, 2018 , the liability and asset relating to deferred compensation had a fair value of $6.0 million and $6.2 million , respectively. As of December 31, 2017 , the liability and asset relating to deferred compensation had a fair value of $5.5 million and $5.6 million , respectively. Any unfunded gain or loss relating to changes in the fair value of the deferred compensation liability is recognized in selling, general and administration expense in the consolidated statements of comprehensive income. As of December 30, 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 four years , have a life of ten years and settle in common shares. It is assumed that all time-based SARs will vest. The total fair value of SARs vested was $0.7 million , $0.4 million and $2.4 million , in the years ended December 30, 2018 , December 31, 2017 , and January 1, 2017 , respectively. Twelve months ended December 30, 20 18 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 (93,369 ) 4,731 18.03 Outstanding, end of period 514,313 $ 7,254 $ 39.01 4.6 Exercisable, end of period 391,428 $ 7,254 $ 30.20 3.4 Twelve months ended December 31, 20 17 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 (281,444 ) 16,378 17.96 Forfeited (30,181 ) 54.28 Outstanding, end of period 537,930 $ 23,263 $ 32.00 4.5 Exercisable, end of period 443,998 $ 22,588 $ 24.28 3.7 Twelve months ended January 1, 2017 Stock Appreciation Rights Aggregate Intrinsic Value (in thousands) Weighted Average Exercise Price Average Remaining Contractual Life (Years) Outstanding, beginning of period 891,147 $ 36,681 $ 20.07 4.9 Granted 121,805 58.37 Exercised (176,416 ) 8,954 17.09 Forfeited (46,246 ) 57.47 Outstanding, end of period 790,290 $ 32,659 $ 24.47 4.6 Exercisable, end of period 712,331 $ 32,080 $ 20.77 4.1 The value of SARs granted in the year ended December 30, 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 2016 Grants SAR value (model conclusion) $ 18.63 $ 22.65 $ 16.78 Risk-free rate 2.7 % 2.0 % 1.6 % Expected dividend yield 0.0 % 0.0 % 0.0 % Expected volatility 22.8 % 25.8 % 26.2 % Expected term (years) 6.0 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. It is assumed that all time-based RSUs will vest. Year Ended December 30, 2018 December 31, 2017 January 1, 2017 Total Restricted Stock Units Outstanding Weighted Average Grant Date Fair Value 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 $ 58.51 526,930 $ 49.31 Granted 227,487 63.55 163,835 78.29 186,924 58.29 Performance adjustment (1) 25,046 63.49 78,212 54.73 101,759 23.58 Delivered (169,830 ) (197,255 ) (234,791 ) Withheld to cover (2) (45,117 ) (58,739 ) (61,894 ) Forfeited (26,157 ) (70,381 ) (17,002 ) Outstanding, end of period 429,027 $ 66.03 417,598 $ 66.14 501,926 $ 58.51 ____________ (1) Performance-based RSUs are presented as outstanding, granted and forfeited in the table above assuming targets are met and the awards pay out at 100%. The performance adjustment represents the difference in shares ultimately awarded due to performance attainment above or below target. (2) 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-half of the RSUs granted during the year ended December 30, 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 year ended December 30, 2018 , was $14.5 million and is being recognized over the weighted average requisite service period of 2.5 years. During the year ended December 30, 2018 , there were 214,947 RSUs vested at a fair value of $13.8 million |
Restructuring Costs
Restructuring Costs | 12 Months Ended |
Dec. 30, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Costs | Restructuring Costs Over the past several years, we have engaged in a series of restructuring programs related to exiting certain geographies and non-core businesses, consolidating certain internal support functions and engaging in other actions designed to reduce our cost structure and improve productivity. These initiatives primarily consist of severance actions and lease termination costs. Management continues to evaluate our business; therefore, in future years, there may be additional provisions for new plan initiatives, as well as changes in previously recorded estimates, as payments are made or actions are completed. Asset impairment charges were also incurred in connection with these restructuring actions for certain assets sold, abandoned or made obsolete as a result of these programs. The following table summarizes the restructuring charges recorded for the periods indicated: Year Ended December 30, 20 18 (In thousands) North American Residential Europe Total 2018 Plan $ 275 $ 1,349 $ 1,624 Total Restructuring Costs $ 275 $ 1,349 $ 1,624 Year Ended December 31, 20 17 (In thousands) Europe Architectural Corporate & Other Total 2016 Plan $ — 2,394 — $ 2,394 2015 Plan — — (7 ) (7 ) 2014 Plan — — (1,510 ) (1,510 ) Other (27 ) — — (27 ) Total Restructuring Costs $ (27 ) $ 2,394 $ (1,517 ) $ 850 Year Ended January 1, 2017 (In thousands) North American Residential Europe Corporate & Other Total 2016 Plan $ — $ 1,313 $ — $ 1,313 2015 Plan 19 — 113 132 Total Restructuring Costs $ 19 $ 1,313 $ 113 $ 1,445 Cumulative Amount Incurred Through December 30, 2018 (In thousands) North American Residential Europe Architectural Corporate & Other Total 2018 Plan $ 275 $ 1,349 $ — $ — $ 1,624 2016 Plan — — 3,707 — 3,707 2015 Plan — 2,335 — 3,274 5,609 2014 Plan — — — 7,993 7,993 Total Restructuring Costs $ 275 $ 3,684 $ 3,707 $ 11,267 $ 18,933 During the fourth quarter of 2018, we began implementing a plan to reorganize and consolidate certain aspects of our United Kingdom head office function and optimize our portfolio by divesting non-core assets to enable more effective and consistent business processes in the Europe segment. In addition, in the North America segment we announced a new facility that will optimize and expand capacity through increased automation, which will result in the closure of one existing facility and related headcount reductions beginning in the second quarter of 2019 (collectively, the “2018 Plan”). Costs associated with the 2018 Plan include severance, retention and closure charges and will continue throughout 2019. Additionally, the plan to divest non-core assets was determined to be a triggering event requiring a test of the carrying value of the definite-lived assets relating to the divestitures, as further described in Note 13. As of December 30, 2018, we expect to incur approximately $2 million of additional charges related to the 2018 Plan. During 2016, we began implementing a plan (the "2016 Plan") to close one manufacturing facility in the Architectural segment, which included the reduction of approximately 140 positions. The 2016 Plan was implemented to improve our cost structure and enhance operational efficiencies. Costs associated with the 2016 Plan include closure costs and severance and the 2016 Plan is substantially completed. As of December 30, 2018, we do not expect to incur any future charges relating to the 2016 Plan. During 2015, we began implementing a multi-year plan to reorganize and consolidate certain aspects of our global head office (the "2015 Plan"). The 2015 Plan includes the creation of a new shared services function and the rationalization of certain of our European facilities, including related headcount reductions. The 2015 Plan was implemented in response to the need for more effective business processes enabled by the planned implementation of our new enterprise resource planning system in our architectural business as well as ongoing weak market conditions in Africa and Europe outside of the United Kingdom. Costs associated with the 2015 Plan included severance and closure charges and are substantially completed. As of December 30, 2018 , we do not expect to incur any material future charges for the 2015 Plan. On August 20, 2014, the Board of Directors of Masonite Israel Ltd. (“Israel”), one of our wholly-owned subsidiaries, decided to voluntarily seek a Stay of Proceedings from the Israeli courts in an attempt to restructure the business (the “2014 Plan”). The court filing was made on August 21, 2014, and the court appointed a trustee to oversee the operation of the business. On June 28, 2017 the Stay of Proceedings was finalized, which resulted in a settlement payment to us as creditor in the amount of $1.1 million , which was recorded as a reduction to restructuring costs. As of December 30, 2018 , we do not expect to incur any future charges relating to the 2014 Plan. Other plans initiated in prior years did not have a material impact on the consolidated statements of comprehensive income or consolidated statements of cash flows for the years ended December 30, 2018, December 21, 2017, or January 1, 2017, or on the consolidated balance sheets as of December 30, 2018, or December 31, 2017. The changes in the accrual for restructuring by activity were as follows for the periods indicated: (In thousands) December 31, 2017 Severance Closure Costs Cash Payments December 30, 2018 2018 Plan $ — $ 859 $ 765 $ (1,028 ) $ 596 2016 Plan 90 — — (90 ) — Other 194 — — (136 ) 58 Total $ 284 $ 859 $ 765 $ (1,254 ) $ 654 (In thousands) January 1, 2017 Severance Closure Costs Cash (Payments) Receipts December 31, 2017 2016 Plan $ 1,300 $ 116 $ 2,278 $ (3,604 ) $ 90 2015 Plan 282 (7 ) — (275 ) — 2014 Plan 426 — (1,510 ) 1,084 — Other 465 — (27 ) (244 ) 194 Total $ 2,473 $ 109 $ 741 $ (3,039 ) $ 284 (In thousands) January 3, 2016 Severance Closure Costs Cash Payments January 1, 2017 2016 Plan $ — $ 1,313 $ — $ (13 ) $ 1,300 2015 Plan 774 107 25 (624 ) 282 2014 Plan 442 — — (16 ) 426 Other 1,174 — — (709 ) 465 Total $ 2,390 $ 1,420 $ 25 $ (1,362 ) $ 2,473 |
Asset Impairment
Asset Impairment | 12 Months Ended |
Dec. 30, 2018 | |
Asset Impairment Charges [Abstract] | |
Asset Impairment | Asset Impairment During the year ended December 30, 2018, we recognized non-cash asset impairment charges of $5.2 million related to one asset group in the Europe segment, as a result of the 2018 Plan. This amount was determined based upon the excess of the asset group's carrying value of property, plant and equipment and definite-lived intangible assets over the fair value of such assets, determined using a discounted cash flows approach. This valuation was performed on a non-recurring basis and is categorized as having Level 3 valuation inputs as established by the FASB's Fair Value Framework. The Level 3 unobservable inputs include an estimate of future cash flows for the asset group and a market value for the asset group's property, plant and equipment. The fair value of the asset group was determined to be $3.2 million , solely based upon the market value of the property, plant and equipment, compared to a book value of $8.4 million , with the difference representing the asset impairment charge recorded in the consolidated statements of comprehensive income. During the year ended January 1, 2017, we recognized non-cash asset impairment charges of $1.5 million related to one asset group in the Architectural segment, as a result of the 2016 Plan. This amount was determined based upon the excess of the asset group's carrying value of property, plant and equipment over the fair value of such assets, determined using a discounted cash flows approach. This valuation was performed on a non-recurring basis and is categorized as having Level 3 valuation inputs as established by the FASB's Fair Value Framework. The Level 3 unobservable inputs include an estimate of future cash flows for the asset group and a salvage value for the asset group. The fair value of the asset group was determined to be $0.6 million , compared to a book value of $2.1 million |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For financial reporting purposes, income before income taxes includes the following components: Year Ended (In thousands) December 30, 2018 December 31, 2017 January 1, 2017 Income before income tax expense (benefit): Canada $ 19,552 $ 25,617 $ 25,982 Foreign 100,805 103,804 99,947 Total income before income tax expense (benefit) $ 120,357 $ 129,421 $ 125,929 Income tax expense (benefit) for income taxes consists of the following: Year Ended (In thousands) December 30, 2018 December 31, 2017 January 1, 2017 Current income tax expense (benefit): Canada $ 7,997 $ 7,293 $ 6,740 Foreign 5,253 (623 ) 2,129 Total current income tax expense: 13,250 6,670 8,869 Deferred income tax expense (benefit): Canada 122 (22,287 ) 3,045 Foreign 10,441 (11,943 ) 9,873 Total deferred income tax expense (benefit): 10,563 (34,230 ) 12,918 Income tax expense (benefit) $ 23,813 $ (27,560 ) $ 21,787 On December 22, 2017, Congress passed the U.S. Tax Cuts and Jobs Act (“Tax Reform”). Among other items, Tax Reform reduces the federal corporate tax rate to 21% effective January 1, 2018. Pursuant to ASC 740, we were required to recognize the effects of changes in tax laws and rates on deferred tax assets and liabilities upon enactment. Therefore, we recorded a net income tax benefit of $27.2 million as of December 31, 2017, primarily associated with the revaluation of our U.S. deferred taxes. We applied the guidance in SAB 118 when accounting for the enactment-date effects of Tax Reform in 2017 and throughout 2018. As of December 31, 2017, we had not completed our accounting for all of the enactment date income tax effects of Tax Reform under ASC 740. During the fourth quarter of 2018, we filed our 2017 U.S. federal income tax return and subsequently recorded the changes to the income tax provision that was estimated as of the December 31, 2017, reporting date. As of December 30, 2018, we have now completed our accounting for all of the enactment date income tax effects of Tax Reform. The Canadian statutory rate is 26.5% , 26.5% and 26.6% for the years ended December 30, 2018 , December 31, 2017 , and January 1, 2017 , respectively. A summary of the differences between expected income tax expense calculated at the Canadian statutory rate and the reported consolidated income tax expense (benefit) follows: Year Ended (In thousands) December 30, 2018 December 31, 2017 January 1, 2017 Income tax expense computed at statutory income tax rate $ 31,895 $ 34,477 $ 33,710 Foreign rate differential (4,926 ) 2,772 6,125 Permanent differences (1,822 ) 1,527 1,159 Deconsolidation and disposition (21 ) (160 ) (2,027 ) Income attributable to a permanent establishment 1,873 347 637 Change in valuation allowance 3,878 (27,603 ) (586 ) Tax exempt income (5,673 ) (6,469 ) (9,411 ) Share based compensation (737 ) (7,583 ) (6,080 ) Income tax credits (3,252 ) (1,833 ) (2,389 ) Foreign exchange gains (losses) (2,683 ) 770 (277 ) Unrecognized tax benefits 646 (116 ) 2,232 Change in tax rate (284 ) 1,209 (1,130 ) Change in tax rate due to U.S. reform — (27,138 ) — Limitation on executive compensation 2,038 — — Withholding and other taxes 3,631 1,943 — Other (750 ) 297 (176 ) Income tax expense (benefit) $ 23,813 $ (27,560 ) $ 21,787 Deferred tax assets arise from available net operating losses and deductions. Our ability to use those net operating losses is dependent upon our results of operations in the tax jurisdictions in which such losses or deductions arose. The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities are presented below: Year Ended (In thousands) December 30, 2018 December 31, 2017 Deferred tax assets: Non-capital loss carryforwards $ 24,536 $ 34,605 Capital loss carryforwards 12,674 13,498 Deferred interest expense 8,990 8,671 Pension and post-retirement liability 3,410 4,493 Accruals and reserves currently not deductible for tax purposes 16,683 14,954 Share based compensation 3,314 6,137 Income tax credits 5,694 3,713 Other 2,114 3,875 Total deferred tax assets 77,415 89,946 Valuation allowance (16,373 ) (13,912 ) Total deferred tax assets, net of valuation allowance 61,042 76,034 Deferred tax liabilities: Plant and equipment (64,831 ) (60,571 ) Intangibles (35,740 ) (30,578 ) Basis difference in subsidiaries (7,070 ) (6,558 ) Unrealized foreign exchange gain (5,102 ) (6,753 ) Other (1,912 ) (2,495 ) Total deferred tax liabilities (114,655 ) (106,955 ) Net deferred tax liability $ (53,613 ) $ (30,921 ) Management assesses the available positive and negative evidence to estimate if sufficient future taxable income will be generated to use the existing deferred tax assets. As of December 30, 2018 and December 31, 2017 , a valuation allowance of $16.4 million and $13.9 million , respectively, has been established to reduce the deferred tax assets to an amount that is more likely than not to be realized. We have established valuation allowances on certain deferred tax assets resulting from net operating loss carryforwards and other assets in Costa Rica, Luxembourg and the United Kingdom. Additionally, we have established valuations allowances on capital loss carryforwards in Canada. The amount of the deferred tax assets considered realizable, however, could be adjusted if estimates of future taxable income during the carryforward period are reduced or increased or if objective negative evidence in the form of cumulative losses is no longer present and additional weight may be given to subjective evidence such as our projections for growth. The following is a rollforward of the valuation allowance for deferred tax assets: Year Ended (In thousands) December 30, 2018 December 31, 2017 January 1, 2017 Balance at beginning of period $ 13,912 $ 36,800 $ 40,857 Additions charged to expense and other 12,590 5,566 2,433 Deductions (10,129 ) (28,454 ) (6,490 ) Balance at end of period $ 16,373 $ 13,912 $ 36,800 The losses carried forward for tax purposes are available to reduce future taxable income by $93.8 million . We can apply these losses against future taxable income as follows: (In thousands) Canada United States Other Foreign Total 2019-2026 $ — $ — $ 5,230 $ 5,230 2027-2046 32,472 16,972 — 49,444 Indefinitely — — 39,128 39,128 Total tax losses carried forward $ 32,472 $ 16,972 $ 44,358 $ 93,802 We believe that it is more likely than not that the benefit from certain net operating loss carryforwards will not be realized. In recognition of this risk, we have provided valuation allowances of $3.7 million on these gross net operating loss carryforwards. If or when recognized, the tax benefit related to any reversal of the valuation allowance on deferred tax assets as of December 30, 2018 , will be accounted for as a reduction of income tax expense. We have outside basis differences, including undistributed earnings in our foreign subsidiaries. For those subsidiaries in which we are considered to be indefinitely reinvested, no provision for Canadian income or local country withholding taxes has been recorded. Upon reversal of the outside basis difference and/or repatriation of those earnings, in the form of dividends or otherwise, we may be subject to both Canadian income taxes and withholding taxes payable to the various foreign countries. For those subsidiaries where the earnings are not considered indefinitely reinvested, taxes have been provided as required. The determination of the unrecorded deferred tax liability for temporary differences related to investments in foreign subsidiaries that are considered to be indefinitely reinvested is not considered practical. As of December 30, 2018 , and December 31, 2017 , our unrecognized tax benefits were $9.1 million and $8.6 million , respectively, excluding interest and penalties. Included in the balance of unrecognized tax benefits as of December 30, 2018 and December 31, 2017 , are $6.7 million and $5.9 million , respectively, of tax benefits that, if recognized, would favorably impact the effective tax rate. The unrecognized tax benefits are recorded in other long-term liabilities and as a reduction to related long-term deferred income taxes in the consolidated balance sheets. The changes to our unrecognized tax benefits were as follows: Year Ended (In thousands) December 30, 2018 December 31, 2017 January 1, 2017 Unrecognized tax benefit at beginning of period $ 8,560 $ 9,004 $ 3,382 Gross increases in tax positions in current period 508 1,208 5,950 Gross decreases in tax positions in prior period (244 ) (464 ) (335 ) Gross increases in tax positions in prior period 274 1,336 271 Lapse of statute of limitations (14 ) (17 ) (264 ) Decrease due to change in tax rate — (2,507 ) — Unrecognized tax benefit at end of period $ 9,084 $ 8,560 $ 9,004 We recognize interest and penalties accrued related to unrecognized tax benefits as income tax expense. During the years ended December 30, 2018 , December 31, 2017 , and January 1, 2017 , we recorded accrued interest of $0.5 million , $0.4 million and $0.5 million , respectively. Additionally, we have recognized a liability for penalties of $0.4 million , $0.4 million and $0.5 million , and interest of $3.3 million , $3.2 million and $5.5 million , respectively. We estimate that the amount of unrecognized tax benefits will not significantly increase or decrease within the 12 months following the reporting date. We are subject to taxation in Canada, the United States and other foreign jurisdictions. As of December 30, 2018 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 30, 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) Year Ended December 30, 2018 December 31, 2017 January 1, 2017 Net income attributable to Masonite $ 92,710 $ 151,739 $ 98,622 Shares used in computing basic earnings per share 27,412,268 29,298,236 30,359,193 Effect of dilutive securities: Incremental shares issuable under share compensation plans 452,960 516,423 741,883 Shares used in computing diluted earnings per share 27,865,228 29,814,659 31,101,076 Basic earnings per common share attributable to Masonite $ 3.38 $ 5.18 $ 3.25 Diluted earnings per common share attributable to Masonite 3.33 5.09 3.17 Anti-dilutive instruments excluded from diluted earnings per common share: Stock appreciation rights 120,881 51,129 — |
Segment Information
Segment Information | 12 Months Ended |
Dec. 30, 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 the 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 2026 and 2023 Notes and the credit agreement governing the ABL Facility. Although Adjusted EBITDA is not a measure of financial condition or performance determined in accordance with GAAP, it is used to evaluate and compare the operating performance of the segments and it is one of the primary measures used to determine employee incentive compensation. Intersegment transfers are negotiated on an arm’s length basis, using market prices. Certain information with respect to reportable segments is as follows for the periods indicated: Year Ended December 30, 2018 (In thousands) North American Residential Europe Architectural Corporate & Other Total Sales $ 1,458,957 $ 371,069 $ 340,609 $ 22,869 $ 2,193,504 Intersegment sales (4,198 ) (2,066 ) (17,137 ) — (23,401 ) Net sales to external customers $ 1,454,759 $ 369,003 $ 323,472 $ 22,869 $ 2,170,103 Adjusted EBITDA $ 202,465 $ 44,985 $ 37,742 $ (17,256 ) $ 267,936 Depreciation and amortization 31,425 24,638 19,667 11,942 87,672 Interest expense, net — — — 39,008 39,008 Income tax expense — — — 23,813 23,813 Year Ended December 31, 2017 (In thousands) North American Residential Europe Architectural Corporate & Other Total Sales $ 1,433,268 $ 295,862 $ 307,237 $ 23,605 $ 2,059,972 Intersegment sales (4,338 ) (3,936 ) (18,773 ) — (27,047 ) Net sales to external customers $ 1,428,930 $ 291,926 $ 288,464 $ 23,605 $ 2,032,925 Adjusted EBITDA $ 200,179 $ 33,820 $ 30,050 $ (9,543 ) $ 254,506 Depreciation and amortization 33,167 17,455 17,774 13,507 81,903 Interest expense, net — — — 30,153 30,153 Income tax benefit — — — (27,560 ) (27,560 ) Year Ended January 1, 2017 (In thousands) North American Residential Europe Architectural Corporate & Other Total Sales $ 1,357,228 $ 305,710 $ 312,241 $ 23,607 $ 1,998,786 Intersegment sales (5,926 ) (4,543 ) (14,353 ) — (24,822 ) Net sales to external customers $ 1,351,302 $ 301,167 $ 297,888 $ 23,607 $ 1,973,964 Adjusted EBITDA $ 212,619 $ 39,028 $ 25,160 $ (24,794 ) $ 252,013 Depreciation and amortization 35,542 17,549 17,621 11,619 82,331 Interest expense, net — — — 28,178 28,178 Income tax expense — — — 21,787 21,787 As described in Note 1. Business Overview and Significant Accounting Policies, the adoption of ASU 2017-07 required a reclassification of prior periods' other income, net of expense. This resulted in a consolidated decrease of $1.1 million and $0.5 million to Adjusted EBITDA for the years ended December 31, 2017 and January 1, 2017, respectively, compared to the same figures previously presented. On a segment basis, Adjusted EBITDA for the Europe segment was increased by $0.3 million and $0.2 million for the years ended December 31, 2017 and January 1, 2017, respectively, while Adjusted EBITDA for the Corporate & Other category was decreased by $1.3 million and $0.7 million for the years ended December 31, 2017, and January 1, 2017, respectively, compared to the same figures previously-presented. Amounts for the segments do not sum to consolidated amounts due to rounding. A reconciliation of our consolidated Adjusted EBITDA to net income attributable to Masonite is set forth as follows for the periods indicated: Year Ended (In thousands) December 30, 2018 December 31, 2017 January 1, 2017 Adjusted EBITDA $ 267,936 $ 254,506 $ 252,013 Less (plus): Depreciation 59,089 57,528 57,604 Amortization 28,583 24,375 24,727 Share based compensation expense 7,681 11,644 18,790 Loss on disposal of property, plant and equipment 3,470 1,893 2,111 Restructuring costs 1,624 850 1,445 Asset impairment 5,243 — 1,511 Loss (gain) on disposal of subsidiaries — 212 (6,575 ) Interest expense, net 39,008 30,153 28,178 Loss on extinguishment of debt 5,414 — — Other income, net of expense (2,533 ) (1,570 ) (1,707 ) Income tax expense (benefit) 23,813 (27,560 ) 21,787 Net income attributable to non-controlling interest 3,834 5,242 5,520 Net income attributable to Masonite $ 92,710 $ 151,739 $ 98,622 We derive revenues from two major product lines: interior and exterior products. We do not review or analyze our two major product lines below net sales. Additionally, we sell door components to external customers which are not otherwise consumed in our vertical operations. Sales for the product lines are summarized as follows for the periods indicated: Year Ended (In thousands) December 30, 2018 December 31, 2017 January 1, 2017 Net sales to external customers: Interior products $ 1,560,949 $ 1,407,041 $ 1,378,959 Exterior products 508,449 526,487 496,617 Components 100,705 99,397 98,388 Total $ 2,170,103 $ 2,032,925 $ 1,973,964 Net sales information with respect to geographic areas exceeding 10% of consolidated net sales is as follows for the periods indicated: Year Ended (In thousands) December 30, 2018 December 31, 2017 January 1, 2017 Net sales to external customers from facilities in: United States $ 1,388,680 $ 1,333,223 $ 1,284,982 Canada 329,292 327,644 306,130 United Kingdom 328,669 253,564 262,854 Other 123,462 118,494 119,998 Total $ 2,170,103 $ 2,032,925 $ 1,973,964 In the years ended December 30, 2018 , December 31, 2017 , and January 1, 2017 , net sales to The Home Depot, Inc., were $385.3 million , $356.5 million and $316.2 million , respectively, which are included in the North American Residential segment. No other individual customer's net sales exceeded 10% of consolidated net sales for any of the periods presented. Geographic information regarding property, plant and equipment which exceed 10% of consolidated property, plant and equipment used in continuing operations is as follows as of the dates indicated: (In thousands) December 30, 2018 December 31, 2017 United States $ 412,072 $ 369,630 Canada 62,626 67,358 Other 135,055 138,504 Total $ 609,753 $ 575,492 |
Employee Future Benefits
Employee Future Benefits | 12 Months Ended |
Dec. 30, 2018 | |
Retirement Benefits [Abstract] | |
Employee Future Benefits | Employee Future Benefits United States Defined Benefit Pension Plan We have a defined benefit pension plan covering certain active and former employees in the United States (“U.S.”). Benefits under the plan were frozen at various times in the past. The measurement date used for the accounting valuation of the defined benefit pension plan was December 30, 2018 . Information about the U.S. defined benefit pension plan is as follows for the periods indicated: Year Ended (In thousands) December 30, 2018 December 31, 2017 January 1, 2017 Components of net periodic benefit cost: Service cost $ 670 $ 811 $ 286 Interest cost 3,322 3,421 3,570 Expected return on assets (6,253 ) (5,852 ) (5,373 ) Amortization of actuarial net losses 1,149 1,113 1,070 Net pension benefit $ (1,112 ) $ (507 ) $ (447 ) Information with respect to the assets, liabilities and net accrued benefit obligation of the U.S. defined benefit pension plan is set forth as follows for the periods indicated: Year Ended (In thousands) December 30, 2018 December 31, 2017 Pension assets: Fair value of plan assets, beginning of year $ 92,716 $ 83,550 Company contributions 5,000 5,000 Actual return on plan assets (4,453 ) 10,704 Benefits paid (5,730 ) (5,915 ) Administrative expenses paid (541 ) (623 ) Fair value of plan assets, end of year 86,992 92,716 Pension liability: Accrued benefit obligation, beginning of year 104,909 100,887 Current service cost 670 811 Interest cost 3,322 3,421 Actuarial loss (gain) (7,459 ) 6,328 Benefits paid (5,730 ) (5,915 ) Administrative expenses paid (541 ) (623 ) Accrued benefit obligation, end of year 95,171 104,909 Net accrued benefit obligation, end of year $ 8,179 $ 12,193 The net accrued benefit obligation is carried within other long-term liabilities in the consolidated balance sheets. Pension fund assets are invested primarily in equity and debt securities. Asset allocation between equity and debt securities and cash is adjusted based on the expected life of the plan and the expected retirement age of the plan participants. No plan assets are expected to be returned to us in the next twelve months. Information with respect to the amounts and types of securities that are held in the U.S. defined benefit pension plan is set forth as follows for the periods indicated: Year Ended December 30, 2018 December 31, 2017 (In thousands) Amount % of Total Plan Amount % of Total Plan Equity securities $ 51,412 59.1 % $ 54,517 58.8 % Debt securities 32,361 37.2 % 33,470 36.1 % Other 3,219 3.7 % 4,729 5.1 % $ 86,992 100.0 % $ 92,716 100.0 % Under our investment policy statement, plan assets are invested to achieve a fully-funded status based on actuarial calculations, maintain a level of liquidity that is sufficient to pay benefit and expense obligations when due, maintain flexibility in determining the future level of contributions and maximize returns within the limits of risk. The target asset allocation for plan assets in the U.S. defined benefit pension plan for 2018 is 60% equity securities, 38% debt securities and 2% of other securities. Our pension funds are not invested directly in the debt or equity of Masonite, but may have been invested indirectly as a result of inclusion of Masonite in certain market or investment funds. The weighted average actuarial assumptions adopted in measuring our U.S. accrued benefit obligations and costs were as follows for the periods indicated: Year Ended December 30, 2018 December 31, 2017 January 1, 2017 Discount rate applied for: Accrued benefit obligation 4.3 % 3.6 % 4.2 % Net periodic pension cost 3.6 % 4.2 % 4.5 % Expected long-term rate of return on plan assets 6.8 % 7.0 % 7.0 % The rate of compensation increase for the accrued benefit obligation and net periodic pension costs for the U.S. defined benefit pension plan is not applicable, as benefits under the plan are not affected by compensation increases. The expected long-term rate of return on plan assets assumption is derived by taking into consideration the target plan asset allocation, historical rates of return on those assets, projected future asset class returns and net outperformance of the market by active investment managers. An asset return model is used to develop an expected range of returns on the plan investments over a 30 -year period, with the expected rate of return selected from a best estimate range within the total range of projected results. United Kingdom Defined Benefit Pension Plan We also have a defined benefit pension plan in the United Kingdom (“U.K.”), which has been curtailed in prior years. The measurement date used for the accounting valuation of the U.K. defined benefit pension plan was December 30, 2018 . Information about the U.K. defined benefit pension plan is as follows for the periods indicated: Year Ended December 30, 2018 December 31, 2017 January 1, 2017 Components of net periodic benefit cost: Interest cost $ 648 $ 685 $ 873 Expected return on assets (990 ) (429 ) (640 ) Amortization of actuarial net losses 142 — — Net pension expense (benefit) $ (200 ) $ 256 $ 233 Information with respect to the assets, liabilities and net accrued benefit obligation of the U.K. defined benefit pension plan is as follows for the periods indicated: Year Ended (In thousands) December 30, 2018 December 31, 2017 Pension assets: Fair value of plan assets, beginning of year $ 25,141 $ 21,011 Company contributions 661 1,002 Actual return on plan assets (1,106 ) 1,867 Benefits paid (886 ) (800 ) Translation adjustment (1,503 ) 2,061 Fair value of plan assets, end of year 22,307 25,141 Pension liability Accrued benefit obligation, beginning of year 30,812 29,095 Interest cost 648 685 Actuarial gain (962 ) (833 ) Benefits paid (886 ) (800 ) Plan amendment 585 — Translation adjustment (1,894 ) 2,665 Accrued benefit obligation, end of year 28,303 30,812 Net accrued benefit obligation, end of year $ 5,996 $ 5,671 The net accrued benefit obligation is carried within other long-term liabilities in the consolidated balance sheets. Pension fund assets are invested primarily in equity and debt securities. Asset allocation between equity and debt securities and cash is adjusted based on the expected life of the plan and the expected retirement age of the plan participants. Information with respect to the amounts and types of securities that are held in the U.K. defined benefit pension plan is set forth as follows for the periods indicated: Year Ended December 30, 2018 December 31, 2017 (In thousands) Amount % of Total Plan Amount % of Total Plan Equity securities $ 10,207 45.8 % $ 11,855 47.2 % Debt securities 11,909 53.3 % 12,949 51.5 % Other 191 0.9 % 337 1.3 % $ 22,307 100.0 % $ 25,141 100.0 % Under our investment policy and strategy, plan assets are invested to achieve a fully funded status based on actuarial calculations, maintain a level of liquidity that is sufficient to pay benefit and expense obligations when due, maintain flexibility in determining the future level of contributions and maximize returns within the limits of risk. The target asset allocation for plan assets in the U.K. defined benefit pension plan for 2018 is 50% equity securities and 50% debt securities. The weighted average actuarial assumptions adopted in measuring our U.K. accrued benefit obligations and costs were as follows for the periods indicated: Year Ended December 30, 2018 December 31, 2017 January 1, 2017 Discount rate applied for: Accrued benefit obligation 2.7 % 2.4 % 2.6 % Net periodic pension cost 2.4 % 2.2 % 2.3 % Expected long-term rate of return on plan assets 4.2 % 4.0 % 3.9 % The rate of compensation increase for the accrued benefit obligation and net pension cost for the U.K. defined benefit pension plan is not applicable, as the plan was curtailed in prior years and benefits under the plan are not affected by compensation increases. The expected long-term rate of return on plan assets assumption is derived by taking into consideration the target plan asset allocation, historical rates of return on those assets, projected future asset class returns and net outperformance of the market by active investment managers. An asset return model is used to develop an expected range of returns on the plan investments over a 10 -year period, with the expected rate of return selected from a best estimate range within the total range of projected results. Overall Pension Obligation For all periods presented, the U.S. and U.K. defined benefit pension plans were invested in equity securities, equity funds, bonds, bond funds and cash and cash equivalents. All investments are publicly traded and possess a high level of marketability or liquidity. All plan investments are categorized as having Level 1 valuation inputs as established by the FASB’s Fair Value Framework. The change in the net difference between the pension plan assets and projected benefit obligation that is not attributed to our recognition of pension expense or funding of the plan is recognized in other comprehensive income (loss) within the consolidated statements of comprehensive income and the balance of such changes is included in accumulated other comprehensive income (loss) (“AOCI”) in the consolidated balance sheets. The estimated actuarial net losses that will be amortized from AOCI into net periodic benefit cost during 2019 are $1.9 million . As of December 30, 2018 , the estimated future benefit payments from the U.S. and U.K. defined benefit pension plans for the following future periods are set forth as follows: (In thousands) Expected Future Benefit Payments Fiscal year: 2019 $ 6,924 2020 7,188 2021 7,435 2022 7,526 2023 7,593 2024 through 2028 38,486 Total estimated future benefit payments $ 75,152 Expected contributions to the U.S. and U.K. defined benefit pension plans during 2019 are $6.0 million |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income and Other Comprehensive Income | 12 Months Ended |
Dec. 30, 2018 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income and Other Comprehensive Income | Accumulated Other Comprehensive Income and Other Comprehensive Income A rollforward of the components of accumulated other comprehensive loss is as follows for the periods indicated: Year Ended (In thousands) December 30, 2018 December 31, 2017 January 1, 2017 Accumulated foreign exchange losses, beginning of period $ (89,824 ) $ (127,433 ) $ (90,111 ) Foreign exchange gain (loss) (40,880 ) 38,758 (35,666 ) Income tax expense on foreign exchange losses (60 ) (609 ) — Cumulative translation adjustment recognized upon deconsolidation of subsidiaries — 212 (1,431 ) Less: foreign exchange gain (loss) attributable to non-controlling interest (834 ) 752 225 Accumulated foreign exchange losses, end of period (129,930 ) (89,824 ) (127,433 ) Accumulated pension and other post-retirement adjustments, beginning of period (20,328 ) (21,553 ) (17,837 ) Pension and other post-retirement adjustments (4,754 ) 529 (5,941 ) Income tax benefit on pension and other post-retirement adjustments 1,113 39 1,578 Amortization of actuarial net losses 1,291 1,113 1,070 Income tax expense on amortization of actuarial net losses (311 ) (456 ) (423 ) Accumulated pension and other post-retirement adjustments (22,989 ) (20,328 ) (21,553 ) Accumulated other comprehensive loss $ (152,919 ) $ (110,152 ) $ (148,986 ) Other comprehensive income (loss), net of tax: $ (43,601 ) $ 39,586 $ (40,813 ) Less: other comprehensive income (loss) attributable to non-controlling interest (834 ) 752 225 Other comprehensive income (loss) attributable to Masonite $ (42,767 ) $ 38,834 $ (41,038 ) Cumulative translation adjustments are reclassified out of accumulated other comprehensive loss into loss (gain) on disposal of subsidiaries in the year ended December 31, 2017 , and restructuring costs relating to the 2014 Plan in the year ended January 1, 2017 |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 30, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information Certain cash transactions were as follows for the periods indicated: Year Ended (In thousands) December 30, 2018 December 31, 2017 January 1, 2017 Transactions involving cash: Interest paid $ 35,877 $ 27,396 $ 26,862 Interest received 1,304 381 279 Income taxes paid 10,858 10,169 9,475 Income tax refunds 124 68 1,469 The following reconciles total cash, cash equivalents and restricted cash as of the dates indicated: December 30, 2018 December 31, 2017 Cash and cash equivalents $ 115,656 $ 176,669 Restricted cash 10,485 11,895 Total cash, cash equivalents and restricted cash $ 126,141 $ 188,564 Property, plant and equipment additions in accounts payable were $8.7 million and $8.4 million as of December 30, 2018 , and December 31, 2017 , respectively. |
Variable Interest Entity
Variable Interest Entity | 12 Months Ended |
Dec. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entity | Variable Interest Entity As of December 30, 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 based on the terms of the existing supply agreement with the VIE. As primary beneficiary via the supply agreement, we receive a disproportionate amount of earnings on sales to third parties in relation to our voting interest, and as a result, receive a majority of the VIE’s residual returns. Sales to third parties did not have a material impact on our 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) December 30, December 31, Current assets $ 9,632 $ 7,213 Property, plant and equipment, net 9,327 11,344 Long-term deferred income taxes 4,306 5,472 Other assets 3,122 3,386 Current liabilities (2,653 ) (2,326 ) Other long-term liabilities (859 ) (1,699 ) Non-controlling interest (3,835 ) (4,029 ) Net assets of the VIE consolidated by Masonite $ 19,040 $ 19,361 Current assets include $5.7 million and $3.2 million of cash and cash equivalents as of December 30, 2018 and December 31, 2017 , respectively. Assets recognized as a result of consolidating this VIE do not represent additional |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 30, 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 2026 Notes as of December 30, 2018, was $282.6 million , compared to a carrying value of $295.8 million . The estimated fair value of the 2023 Notes as of December 30, 2018 , was $484.9 million , compared to a carrying value of $499.5 million , and as of December 31, 2017 , was $653.6 million , compared to a carrying value of $624.1 million |
Subsequent Events (Notes)
Subsequent Events (Notes) | 12 Months Ended |
Dec. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events 2019 Restructuring Plan In February 2019, we began implementing a plan to improve overall business performance that includes the reorganization of our manufacturing capacity and a reduction of our overhead and selling, general and administration workforce. The reorganization of our manufacturing capacity will involve specific plants in the North American Residential and Architectural segments and costs associated with the closure of these plants and related headcount reductions will take place beginning in the first quarter of 2019 (collectively, the “2019 Plan”). Costs associated with the 2019 Plan include severance, retention and closure charges and will continue through 2020. As of February 26, 2019, we expect to incur approximately $10 million to $15 million of charges related to the 2019 Plan. ABL Facility On January 31, 2019, we and certain of our subsidiaries entered into a $250.0 million asset-based revolving credit facility (the "ABL Facility") maturing on January 31, 2024. The borrowing base is calculated based on a percentage of the value of selected U.S., Canadian and U.K. accounts receivable and inventory, less certain ineligible amounts. Obligations under the ABL Facility are secured by a first priority security interest in such accounts receivable, inventory and other related assets of Masonite and our subsidiaries. In addition, obligations under the ABL Facility are fully and unconditionally guaranteed, jointly and severally, on a senior secured basis, by certain of our directly or indirectly wholly-owned subsidiaries. Borrowings under the ABL Facility bear interest at a rate equal to, at our option, (i) the U.S., Canadian or U.K. Base Rate (each as defined in the credit agreement relating to the ABL Facility, the "Amended and Restated Credit Agreement") plus a margin ranging from 0.25% to 0.50% per annum, or (ii) the Adjusted LIBO Rate or BA Rate (each as defined in the Amended and Restated Credit Agreement), plus a margin ranging from 1.25% to 1.50% 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 junior priority 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 existing exceptions). As of February 26, 2019, there were no |
Supplemental Unaudited Quarterl
Supplemental Unaudited Quarterly Financial Information | 12 Months Ended |
Dec. 30, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Supplemental Unaudited Quarterly Financial Information | Supplemental Unaudited Quarterly Financial Information The following table sets forth the historical unaudited quarterly financial data for the periods indicated. The information for each of these periods has been prepared on the same basis as the audited consolidated financial statements and, in our opinion, reflects all adjustments necessary to present fairly our financial results. Operating results for previous periods do not necessarily indicate results that may be achieved in any future period. Quarter Ended (In thousands, except per share information) December 30, September 30, July 1, April 1, Net sales $ 528,350 $ 557,148 $ 566,726 $ 517,879 Cost of goods sold 432,989 446,306 443,052 412,450 Gross profit 95,361 110,842 123,674 105,429 Selling, general and administration expenses 61,601 64,530 71,851 68,211 Restructuring costs 1,624 — — — Asset impairment 5,243 — — — Operating income 26,893 46,312 51,823 37,218 Interest expense, net 11,027 10,151 9,074 8,756 Loss on extinguishment of debt — 5,414 — — Other income, net of expense (724 ) (948 ) (839 ) (22 ) Income before income tax expense 16,590 31,695 43,588 28,484 Income tax expense 3,067 6,151 7,894 6,701 Net income 13,523 25,544 35,694 21,783 Less: net income attributable to non-controlling interest 1,176 748 953 957 Net income attributable to Masonite $ 12,347 $ 24,796 $ 34,741 $ 20,826 Basic earnings per common share attributable to Masonite $ 0.47 $ 0.90 $ 1.26 $ 0.74 Diluted earnings per common share attributable to Masonite 0.46 0.89 1.24 0.73 Quarter Ended December 31, October 1, July 2, April 2, Net sales $ 508,500 $ 517,503 $ 519,741 $ 487,181 Cost of goods sold 408,386 413,517 412,415 391,624 Gross profit 100,114 103,986 107,326 95,557 Selling, general and administration expenses 59,874 59,063 63,870 65,110 Restructuring costs (136 ) 1,393 (700 ) 293 Loss on disposal of subsidiaries — — 212 — Operating income 40,376 43,530 43,944 30,154 Interest expense, net 8,804 7,213 7,112 7,024 Other income, net of expense (835 ) (312 ) (154 ) (269 ) Income before income tax expense (benefit) 32,407 36,629 36,986 23,399 Income tax expense (benefit) (40,802 ) 5,989 8,932 (1,679 ) Net income 73,209 30,640 28,054 25,078 Less: net income attributable to non-controlling interest 1,397 1,162 1,170 1,513 Net income attributable to Masonite $ 71,812 $ 29,478 $ 26,884 $ 23,565 Basic earnings per common share attributable to Masonite $ 2.52 $ 1.01 $ 0.90 $ 0.79 Diluted earnings per common share attributable to Masonite 2.48 1.00 0.89 0.77 |
Business Overview and Signifi_2
Business Overview and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation We prepare these consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”). These consolidated financial statements include the accounts of Masonite International Corporation, a company incorporated under the laws of British Columbia, and its subsidiaries, as of December 30, 2018 , and December 31, 2017 , and for the years ended December 30, 2018 , December 31, 2017 and January 1, 2017 . 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 and the 52- or 53-week periods are referred to as years. 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, and to discontinued operations, as described below. |
Adoption of Recent 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 consolidated statements of comprehensive income, requiring the reclassification of a $1.1 million and $0.5 million benefit for the years ended December 31, 2017, and January 1, 2017, respectively, related to other components of net benefit cost out of previously-presented selling, general and administration expense and into previously-presented other income, net of expense. The effect of this reclassification reduced previously-presented operating income by these amounts for the same periods. 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 consolidated statements of cash flows, which is now being summed with cash and cash equivalents, and had the effect of a $0.3 million and $0.4 million increase to previously-presented cash flow used in investing activities for the years ended December 31, 2017, and January 1, 2017, respectively. 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 year ended December 30, 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 under Summary of Significant Accounting Policies below. Other Recent Accounting Pronouncements not yet Adopted In August 2018, the FASB issued ASU 2018-15, “Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract”. This ASU amends the definition of a hosting arrangement and requires a customer in a cloud computing arrangement that is a service contract to follow the internal-use software guidance in ASC 350-40 “Intangibles-Goodwill and Other-Internal-Use Software” to determine which implementation costs to capitalize as assets or expense as incurred. Capitalized implementation costs related to a hosting arrangement that is a service contract will be amortized over the term of the hosting arrangement, beginning when the module or component of the hosting arrangement is ready for its intended use. The guidance is effective for annual periods beginning after December 15, 2019, and interim periods within those annual periods; early adoption is permitted and either retrospective or prospective application is required for all implementation costs incurred after the date of adoption. We plan to adopt this guidance prospectively as of December 31, 2018, the beginning of fiscal year 2019, and we do not expect that the adoption will have any material impact on our results of operations. In January 2017, the FASB issued ASU 2017-04, "Simplifying the Test for Goodwill Impairment", which amends ASC 350 "Intangibles - Goodwill and Other". This ASU simplifies the accounting for goodwill impairments and allows a goodwill impairment charge to be based upon the amount of a reporting unit's carrying value in excess of its fair value; thus, eliminating what is currently known as "Step 2" under the current guidance. This ASU is effective for annual periods beginning after December 15, 2019, and interim periods within those annual periods; early adoption is permitted and prospective application is required. We plan to adopt this guidance prospectively as of December 31, 2018, the beginning of fiscal year 2019, and we do not expect the adoption to have a material impact on our financial statements. In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)", which will replace the existing guidance in ASC 840, "Leases." This standard was supplemented by ASUs 2018-10 and 2018-11 in July 2018. The updated standards aim to increase transparency and comparability among organizations by requiring lessees to recognize right of use assets and lease liabilities on the balance sheet and requiring disclosure of key information about leasing arrangements. The transition option in ASU 2018-11 allows entities to not apply the standards to the comparative periods they present in their financial statements in the year of adoption. These ASUs are effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods; early adoption is permitted. We will adopt these standards as of December 31, 2018, the beginning of fiscal year 2019, and will apply the standards prospectively. We plan to elect the package of practical expedients permitted under the transition guidance of the new standards, which allows us to not reassess whether any expired or existing contracts contain leases, allows us to carry forward the historical lease classification and permits us to exclude from our assessment initial direct costs for any existing leases. We will also make an accounting policy election to exclude leases with an initial term of twelve months or less from our transition adjustment. Lease payments will be recognized in the consolidated statements of comprehensive income on a straight-line basis over the lease term. We have completed our procedures relating to the adoption of the standard, which will result in the recognition of a right of use asset and lease liability for our operating leases of $108.0 million and $113.9 million , respectively, as of December 31, 2018. The difference between the opening right of use asset and lease liability amounts is due to the reclassification of the existing deferred rent liability balance against the opening right of use assets to which it related. Our operating leases include leases for real estate and machinery and equipment and we have no material finance leases. We do not believe the standard will materially affect our consolidated net income, liquidity or compliance with our debt covenants under our current agreements. |
Principles of consolidation | Principles of consolidation: |
Translation of consolidated financial statements into U.S. dollars | Translation of consolidated financial statements into U.S. dollars:These consolidated financial statements are expressed in U.S. dollars. The accounts of the majority of our self-sustaining foreign operations are maintained in functional currencies other than the U.S. dollar. Assets and liabilities for these subsidiaries have been translated into U.S. dollars at the exchange rates prevailing at the end of the period and results of operations at the average exchange rates for the period. Unrealized exchange gains and losses arising from the translation of the financial statements of our non-U.S. functional currency operations are accumulated in the cumulative translation adjustments account in accumulated other comprehensive loss. For our foreign subsidiaries where the U.S. dollar is the functional currency, all foreign currency-denominated accounts are remeasured into U.S. dollars. Unrealized exchange gains and losses arising from remeasurements of foreign currency-denominated assets and liabilities are included within other income, net of expense, in the consolidated statements of comprehensive income. Gains and losses arising from international intercompany transactions that are of a long-term investment nature are reported in the same manner as translation gains and losses. Realized exchange gains and losses are included in net income for the periods presented. |
Cash and cash equivalents | Cash and cash equivalents: |
Restricted cash | Restricted cash: |
Accounts receivable | Accounts receivable: |
Inventories | Inventories: Raw materials are valued at the lower of cost or market value, where market value is determined using replacement cost. Finished goods are valued at the lower of cost or net realizable value. Cost is determined on a first in, first out basis. In determining the net realizable value, we consider factors such as yield, turnover, expected future demand and past experience. The cost of inventories includes all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition. The costs of conversion of inventories include costs directly related to the units of production, such as direct labor. They also include a systematic allocation of fixed and variable production overheads that are incurred in converting raw materials into finished goods. Fixed production overheads are those indirect costs of production that remain relatively constant regardless of the volume of production, such as depreciation and maintenance of factory buildings and equipment, and the cost of factory management and administration. Variable production overheads are those indirect costs of production that vary directly, or nearly directly, with the volume of production, such as indirect materials and indirect labor. |
Property, plant and equipment | Property, plant and equipment Property, plant and equipment are stated at cost. Depreciation is recorded based on the carrying values of buildings, machinery and equipment using the straight-line method over the estimated useful lives set forth as follows: Useful Life (Years) Buildings 20 - 40 Machinery and equipment Tooling 10 - 25 Machinery and equipment 5 - 25 Molds and dies 12 - 25 Office equipment, fixtures and fittings 3 - 12 Information technology systems 5 - 15 Improvements and major maintenance that extend the life of an asset are capitalized; other repairs and maintenance are expensed as incurred. When assets are retired or otherwise disposed, their carrying values and accumulated depreciation are removed from the accounts. Property, plant and equipment are tested for impairment when events or changes in circumstances indicate that the carrying value of an asset or asset group may not be recoverable. An impairment loss is recognized when the carrying amount of an asset or asset group being tested for recoverability exceeds the sum of the undiscounted cash flows expected from its use and disposal. Impairments are measured as the amount by which the carrying amount of the asset or asset group exceeds its fair value, as determined using a discounted cash flows approach when quoted market prices are not available. |
Goodwill | Goodwill: We use the acquisition method of accounting for all business combinations, and we evaluate all business combinations for intangible assets that should be recognized apart from goodwill. Goodwill adjustments are recorded for the effect on goodwill of changes to net assets acquired during the measurement period (up to one year from the date of acquisition) for new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date. Goodwill is not amortized, but instead is tested annually for impairment on the last day of fiscal November, or more frequently if events or changes in circumstances indicate the carrying amount may not be recoverable. The test for impairment is performed at the reporting unit level by comparing the reporting unit’s carrying amount to its fair value. Possible impairment in goodwill is first analyzed using qualitative factors such as macroeconomic and market conditions, changing costs and actual and projected performance, amongst others, to determine whether it is more likely than not that the book value of the reporting unit exceeds its fair value. If it is determined more likely than not that the book value exceeds fair value, a quantitative analysis is performed to test for impairment. When quantitative steps are determined necessary, the fair values of the reporting units are estimated through the use of discounted cash flow analysis and market multiples. If the carrying amount exceeds fair value, then goodwill is impaired. Any impairment in goodwill is measured by allocating the fair value of the reporting unit in a manner similar to a purchase price allocation and comparing the notional goodwill from the fair value allocation to the carrying value of the goodwill. There were no impairment charges recorded against goodwill in any period presented. When developing our discounted cash flow analyses, a number of significant assumptions and estimates are involved to forecast operating cash flows, including future sales growth, margin growth, benefits from restructuring initiatives, income tax rates, capital spending, business initiatives and working capital changes. These assumptions may vary significantly among the reporting units. Operating cash flow forecasts are based on approved operating plans for the early years and historical relationships and long-term economic outlooks for our industry in later years. The weighted average cost of capital (“WACC”) rate is estimated for each specific reporting unit. Due to the many variables inherent in the estimation of a reporting unit’s fair value and the relative size of our recorded goodwill, differences in assumptions may have a material effect on the results of our impairment analyses. The performance of our 2018 annual impairment test based on the inputs outlined above did not result in any impairment of our goodwill. The resulting fair values of each reporting unit tested based upon such inputs exceeded their respective carrying values by greater than 10%. Further, had the WACC rate of each of our reporting units been hypothetically increased by 100 basis points, the fair values of each reporting unit would still have exceeded their respective carrying values. To the extent that future operating results of the reporting units do not meet the forecasted cash flow projections, we can provide no assurance that a future goodwill impairment charge would not be incurred. |
Intangible assets | Intangible assets: Intangible assets with definite lives include customer relationships, non-compete agreements, patents, system software development, supply agreements and acquired trademarks and tradenames. Definite lived intangible assets are amortized over their estimated useful lives. Information pertaining to the estimated useful lives of intangible assets is as follows: Estimated Useful Life Customer relationships Over expected relationship period, not exceeding 10 years Non-compete agreements Straight-line over life of the agreement Patents Over expected useful life, not exceeding 17 years System software development Over expected useful life Supply agreements Straight-line over life of the agreement Acquired trademarks and tradenames Straight-line over expected useful life Amortizable intangible assets are tested for impairment whenever events or changes in circumstances indicate that the carrying value may be greater than fair value. An impairment loss is recognized when the estimate of undiscounted future cash flows generated by such assets is less than the carrying amount. Measurement of the impairment loss is based on the fair value of the asset. Fair value is measured using discounted cash flows. |
Income taxes | Income taxes: We use the asset and liability method of accounting for income taxes. Under the asset and liability method, deferred tax assets and liabilities are recognized for the deferred tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities due to a change in tax rates is recognized in income in the period that includes the date of enactment. A valuation allowance is recorded to reduce deferred tax assets to an amount that is anticipated to be realized on a more likely than not basis. We account for uncertain taxes in accordance with ASC 740, “Income Taxes”. The initial benefit recognition model follows a two-step approach. First we evaluate if the tax position is more likely than not of being sustained if audited based solely on the technical merits of the position. Second, we measure the appropriate amount of benefit to recognize. This is calculated as the largest amount of tax benefit that has a greater than 50% likelihood of ultimately being realized upon settlement. Subsequently at each reporting date, the largest amount that has a greater than 50% likelihood of ultimately being realized, based on information available at that date, will be measured and recognized. |
Employee future benefits | Employee future benefits: We maintain defined benefit pension plans. Earnings are charged with the cost of benefits earned by employees as services are rendered. The cost reflects management’s best estimates of the pension plans’ expected investment yields, wage and salary escalation, mortality of members, terminations and the ages at which members will retire. Changes in these assumptions could impact future pension expense. Service cost components are recognized within cost of goods sold and non-service cost components are recognized within other income, net of expense, in the consolidated statements of comprehensive income. The excess of the net actuarial gain (loss) over 10% of the greater of the benefit obligation or fair value of plan assets at the beginning of the year is amortized over the average remaining service lives of the members. Assets are valued at fair value for the purpose of calculating the expected return on plan assets. Past service costs arising from plan amendments are amortized on a straight-line basis over the average remaining service period of employees active at the date of amendment. |
Restructuring costs | Restructuring costs: All salary-related severance benefits are accrued and expensed when a plan has been put into place, the plan has received approval from the appropriate level of management and the benefit is probable and reasonably estimable, which is generally when the decision to terminate the employee is made by management of sufficient authority. A liability and expense are recorded for termination benefits based on their fair value when it is probable that employees will be entitled to the benefits, and the amount can be reasonably estimated. This occurs when management approves and commits us to the obligation, management’s termination plan specifically identifies all significant actions to be taken, actions required to fulfill management’s plan are expected to begin as soon as possible and significant changes to the plan are not likely. All salary-related non-contractual benefits are accrued and expensed at fair value at the communication date. In addition to salary-related costs, we incur other restructuring costs when facilities are closed or capacity is realigned within the organization. A liability and expense are recorded for contractual exit activities when we terminate the contract within the provisions of the agreement, generally by way of written notice to the counterparty. For non-contractual exit activities, a liability and expense are measured at fair value in the period in which the liability is incurred. |
Financial instruments | Financial instruments: We have applied a framework consistent with ASC 820, “Fair Value Measurement and Disclosure”, and have disclosed all financial assets and liabilities measured at fair value and non-financial assets and liabilities measured at fair value on a non-recurring basis (at least annually). We classify and disclose assets and liabilities carried at fair value in one of the following three categories: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs that are not corroborated by market data. |
Share based compensation expense | Share based compensation expense:We have a share based compensation plan, which is described in detail in Note 11. We apply the fair value method of accounting using comprehensive valuation models, including the Black-Scholes-Merton option pricing model, to determine the compensation expense. |
Revenue recognition | 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 consolidated statements of comprehensive income. |
Product warranties | Product warranties:We warrant certain qualitative attributes of our door products. We have recorded provisions for estimated warranty and related costs within accrued expenses on the consolidated balance sheets, based on historical experience and we periodically adjust these provisions to reflect actual experience. |
Vendor rebates | Vendor rebates:We account for cash consideration received from a vendor as a reduction of cost of goods sold and inventory, in the consolidated statements of comprehensive income and consolidated balance sheets, respectively. The cash consideration received represents agreed-upon vendor rebates that are earned in the normal course of operations. |
Advertising costs | Advertising costs:We recognize advertising costs as they are incurred. Advertising costs incurred primarily relate to tradeshows and are included within selling, general and administration expense in the consolidated statements of comprehensive income. |
Research and development costs | Research and development costs:We recognize research and development costs as they are incurred. Research and development costs incurred primarily relate to the development of new products and the improvement of manufacturing processes, and are primarily included within cost of goods sold in the consolidated statements of comprehensive income. These costs exclude the significant investments in other areas such as advanced automation and e-commerce. |
Insurance losses and proceeds | Insurance losses and proceeds:All involuntary conversions of property, plant and equipment are recorded as losses within loss (gain) on disposal of property, plant and equipment, which is included within selling, general and administration expense in the consolidated statements of comprehensive income and as reductions to property, plant and equipment in the consolidated balance sheets. Any subsequent proceeds received for insured losses of property, plant and equipment are also recorded as gains within loss (gain) in disposal of property, plant and equipment, and are classified as cash flows from investing activities in the consolidated statements of cash flows in the period in which the cash is received. Proceeds received for business interruption recoveries are recorded as a reduction to selling, general and administration expense in the consolidated statements of comprehensive income and are classified as cash flows from operating activities in the consolidated statements of cash flows in the period in which an acknowledgment from the insurance carrier of settlement or partial settlement of a non-refundable nature has been presented to us. |
Discontinued operations | Discontinued operations: We account for discontinued operations by segregating assets, liabilities and earnings (net of tax) in the consolidated balance sheets and consolidated statements of comprehensive income, respectively. Operations are classified as discontinued when the operations and cash flows of the component has been or will be eliminated as a result of a disposal transaction and represents a strategic shift that has or will have a major impact on our operations and financial results. During the year ended December 30, 2018, a change in circumstance required us to reassess the classification of our discontinued operations in the consolidated statements of comprehensive income. All of our previously-presented discontinued operations resulted from analyses performed prior to the adoption of ASU 2014-08, Reporting Discontinued Operations |
Equity investments | Equity investments:We account for investments in affiliates of between 20% and 50% ownership, over which we have significant influence, using the equity method. We record our share of earnings of the affiliate within other income, net of expense, in the consolidated statements of comprehensive income and dividends as a reduction of the investment in the affiliate in the consolidated balance sheets when declared. |
Segment Reporting | Segment Reporting: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. |
Use of estimates | Use of estimates: The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions which affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of net sales and expenses during the reporting periods. During 2018 |
Business Overview and Signifi_3
Business Overview and Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 30, 2018 | |
Accounting Policies [Abstract] | |
Schedule of Property, Plant and Equipment Useful Lives | Depreciation is recorded based on the carrying values of buildings, machinery and equipment using the straight-line method over the estimated useful lives set forth as follows: Useful Life (Years) Buildings 20 - 40 Machinery and equipment Tooling 10 - 25 Machinery and equipment 5 - 25 Molds and dies 12 - 25 Office equipment, fixtures and fittings 3 - 12 Information technology systems 5 - 15 |
Schedule of Useful Lives of Intangible Assets | Definite lived intangible assets are amortized over their estimated useful lives. Information pertaining to the estimated useful lives of intangible assets is as follows: Estimated Useful Life Customer relationships Over expected relationship period, not exceeding 10 years Non-compete agreements Straight-line over life of the agreement Patents Over expected useful life, not exceeding 17 years System software development Over expected useful life Supply agreements Straight-line over life of the agreement Acquired trademarks and tradenames Straight-line over expected useful life |
Schedule of Product Warranty Liability | The rollforward of our warranty provision is as follows for the periods indicated: Year Ended (In thousands) December 30, 2018 December 31, 2017 January 1, 2017 Balance at beginning of period $ 2,189 $ 2,717 $ 3,318 Additions charged to expense 6,965 5,715 3,219 Deductions (4,884 ) (6,243 ) (3,820 ) Balance at end of period $ 4,270 $ 2,189 $ 2,717 |
Acquisitions and Dispositions (
Acquisitions and Dispositions (Tables) | 12 Months Ended |
Dec. 30, 2018 | |
Business Combinations [Abstract] | |
Aggregate consideration paid for acquisitions | The aggregate consideration paid for acquisitions during 2017 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 (In thousands) BWI Graham & Maiman DW3 Total 2018 Acquisitions Accounts Receivable $ 9,215 $ — $ 8,590 $ 17,805 Inventory 10,736 6,090 5,059 21,885 Property, plant and equipment 2,222 19,557 8,196 29,975 Goodwill 3,349 10,996 33,623 47,968 Intangible assets 2,970 2,750 62,873 68,593 Accounts payable and accrued expenses (6,645 ) (426 ) (10,418 ) (17,489 ) Deferred income taxes — — (11,546 ) (11,546 ) Other assets and liabilities, net 240 — (68 ) 172 Cash consideration, net of cash acquired $ 22,087 $ 38,967 $ 96,309 $ 157,363 |
Intangible assets acquired | Intangible assets acquired from the 2018 Acquisitions consist of the following: (In thousands) BWI Expected Useful Life (Years) Graham & Maiman Expected Useful Life (Years) DW3 Expected Useful Life (Years) Customer relationships $ 1,200 10.0 $ 2,400 10.0 $ 49,554 10.0 Trademarks and trade names 900 10.0 350 1.5 11,785 10.0 Patents — — 1,420 10.0 Other 870 2.2 — 114 3.0 Total intangible assets acquired $ 2,970 $ 2,750 $ 62,873 |
Pro forma information of acquisitions | The pro forma results do not necessarily reflect the actual results of operations of the combined companies' under our ownership and operation. Year Ended December 30, 20 18 (In thousands, except per share amounts) Masonite BWI Graham & Maiman DW3 Intercompany Eliminations Pro Forma Net sales $ 2,170,103 $ 77,110 $ 26,887 $ 4,918 $ (32,720 ) $ 2,246,298 Net income attributable to Masonite 92,710 436 89 81 — 93,316 Basic earnings per common share $ 3.38 $ 3.40 Diluted earnings per common share 3.33 3.35 Year Ended December 31, 2017 (In thousands, except per share amounts) Masonite BWI Graham & Maiman DW3 A&F Intercompany Eliminations Pro Forma Net sales $ 2,032,925 104,291 65,468 58,086 $ 11,104 $ (43,543 ) $ 2,228,331 Net income attributable to Masonite 151,739 (1,811 ) 145 2,035 1,299 — 153,407 Basic earnings per common share $ 5.18 $ 5.24 Diluted earnings per common share 5.09 5.15 Year Ended January 1, 2017 (In thousands, except per share amounts) Masonite A&F Pro Forma Net sales $ 1,973,964 $ 13,861 $ 1,987,825 Net income attributable to Masonite 98,622 999 99,621 Basic earnings per common share $ 3.25 $ 3.28 Diluted earnings per common share 3.17 3.20 Year Ended (In thousands) December 30, 2018 December 31, 2017 Net sales $ 15,540 $ 3,883 Net income attributable to Masonite 1,684 825 Year Ended December 30, 20 18 (In thousands) BWI Graham & Maiman DW3 Total 2018 Acquisitions Net sales $ 13,168 $ 38,901 $ 68,474 $ 120,543 Net income (loss) attributable to Masonite (1,231 ) 314 6,712 5,795 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Dec. 30, 2018 | |
Receivables [Abstract] | |
Rollforward of Allowance for Doubtful Accounts | The changes in the allowance for doubtful accounts were as follows for the periods indicated: Year Ended (In thousands) December 30, 2018 December 31, 2017 January 1, 2017 Balance at beginning of period $ 1,785 $ 1,010 $ 3,125 Additions charged to expense 676 793 103 Deductions (352 ) (18 ) (2,218 ) Balance at end of period $ 2,109 $ 1,785 $ 1,010 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | The amounts of inventory on hand were as follows as of the dates indicated: (In thousands) December 30, December 31, Raw materials $ 189,145 $ 172,960 Finished goods 69,026 68,851 Provision for obsolete or aged inventory (7,764 ) (7,769 ) Inventories, net $ 250,407 $ 234,042 |
Schedule of inventory provision | The rollforward of our inventory provision is as follows for the periods indicated: Year Ended (In thousands) December 30, 2018 December 31, 2017 January 1, 2017 Balance at beginning of period $ 7,769 $ 5,747 $ 6,508 Additions charged to expense 3,146 3,283 1,724 Deductions (3,151 ) (1,261 ) (2,485 ) Balance at end of period $ 7,764 $ 7,769 $ 5,747 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 30, 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) December 30, December 31, Land $ 30,653 $ 28,723 Buildings 179,888 176,077 Machinery and equipment 724,431 661,026 Property, plant and equipment, gross 934,972 865,826 Accumulated depreciation (325,219 ) (290,334 ) Property, plant and equipment, net $ 609,753 $ 575,492 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 30, 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 January 1, 2017 $ 2,843 $ 32,410 $ 94,033 $ 129,286 Goodwill from 2017 acquisitions — — 5,895 5,895 Foreign exchange fluctuations 24 3,021 223 3,268 December 31, 2017 2,867 35,431 100,151 138,449 Goodwill from 2018 acquisitions 3,349 33,623 10,996 47,968 Foreign exchange fluctuations (27 ) (5,834 ) (259 ) (6,120 ) December 30, 2018 $ 6,189 $ 63,220 $ 110,888 $ 180,297 |
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: December 30, 2018 December 31, 2017 (In thousands) Cost Accumulated Amortization Net Book Value Cost Accumulated Amortization Net Book Value Definite life intangible assets: Customer relationships $ 173,637 $ (81,220 ) $ 92,417 $ 146,802 $ (77,441 ) $ 69,361 Patents 31,363 (21,840 ) 9,523 29,795 (20,250 ) 9,545 Software 32,660 (29,296 ) 3,364 30,274 (28,073 ) 2,201 Trademarks and trade names 33,784 (3,948 ) 29,836 — — — Other 971 (97 ) 874 6,555 (4,926 ) 1,629 Total definite life intangible assets 272,415 (136,401 ) 136,014 213,426 (130,690 ) 82,736 Indefinite life intangible assets: Trademarks and trade names 76,031 — 76,031 99,748 — 99,748 Total intangible assets $ 348,446 $ (136,401 ) $ 212,045 $ 313,174 $ (130,690 ) $ 182,484 |
Estimated future amortization of intangible assets with definite lives | The estimated future amortization of intangible assets with definite lives as of December 30, 2018 , is as follows: (In thousands) Fiscal year: 2019 $ 28,329 2020 22,168 2021 18,569 2022 15,123 2023 13,641 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Dec. 30, 2018 | |
Accrued Expenses [Abstract] | |
Schedule of Accrued Expenses | The details of our accrued expenses were as follows as of the dates indicated: (In thousands) December 30, December 31, Accrued payroll $ 39,823 $ 38,296 Accrued rebates 36,711 34,488 Accrued interest 14,570 10,688 Other accruals 56,241 43,287 Total accrued expenses $ 147,345 $ 126,759 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | (In thousands) December 30, December 31, 5.625% senior unsecured notes due 2023 $ 500,000 $ 625,000 5.75% senior unsecured notes due 2026 300,000 — Unamortized premium on 2023 Notes 3,684 5,714 Debt issuance costs (8,394 ) (6,635 ) Capital lease obligations 13 378 Other long-term debt 1,095 1,200 Total long-term debt $ 796,398 $ 625,657 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 30, 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: 2019 $ 24,249 2020 23,904 2021 18,823 2022 14,333 2023 12,389 Thereafter 49,781 Total future minimum lease payments $ 143,479 |
Share Based Compensation Plans
Share Based Compensation Plans (Tables) | 12 Months Ended |
Dec. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock appreciation rights award activity | Twelve months ended December 30, 20 18 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 (93,369 ) 4,731 18.03 Outstanding, end of period 514,313 $ 7,254 $ 39.01 4.6 Exercisable, end of period 391,428 $ 7,254 $ 30.20 3.4 Twelve months ended December 31, 20 17 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 (281,444 ) 16,378 17.96 Forfeited (30,181 ) 54.28 Outstanding, end of period 537,930 $ 23,263 $ 32.00 4.5 Exercisable, end of period 443,998 $ 22,588 $ 24.28 3.7 Twelve months ended January 1, 2017 Stock Appreciation Rights Aggregate Intrinsic Value (in thousands) Weighted Average Exercise Price Average Remaining Contractual Life (Years) Outstanding, beginning of period 891,147 $ 36,681 $ 20.07 4.9 Granted 121,805 58.37 Exercised (176,416 ) 8,954 17.09 Forfeited (46,246 ) 57.47 Outstanding, end of period 790,290 $ 32,659 $ 24.47 4.6 Exercisable, end of period 712,331 $ 32,080 $ 20.77 4.1 |
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 2016 Grants SAR value (model conclusion) $ 18.63 $ 22.65 $ 16.78 Risk-free rate 2.7 % 2.0 % 1.6 % Expected dividend yield 0.0 % 0.0 % 0.0 % Expected volatility 22.8 % 25.8 % 26.2 % Expected term (years) 6.0 6.0 6.0 |
Restricted stock units award activity | Year Ended December 30, 2018 December 31, 2017 January 1, 2017 Total Restricted Stock Units Outstanding Weighted Average Grant Date Fair Value 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 $ 58.51 526,930 $ 49.31 Granted 227,487 63.55 163,835 78.29 186,924 58.29 Performance adjustment (1) 25,046 63.49 78,212 54.73 101,759 23.58 Delivered (169,830 ) (197,255 ) (234,791 ) Withheld to cover (2) (45,117 ) (58,739 ) (61,894 ) Forfeited (26,157 ) (70,381 ) (17,002 ) Outstanding, end of period 429,027 $ 66.03 417,598 $ 66.14 501,926 $ 58.51 ____________ (1) Performance-based RSUs are presented as outstanding, granted and forfeited in the table above assuming targets are met and the awards pay out at 100%. The performance adjustment represents the difference in shares ultimately awarded due to performance attainment above or below target. (2) 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) | 12 Months Ended |
Dec. 30, 2018 | |
Restructuring and Related Activities [Abstract] | |
Total restructuring costs by plan | The following table summarizes the restructuring charges recorded for the periods indicated: Year Ended December 30, 20 18 (In thousands) North American Residential Europe Total 2018 Plan $ 275 $ 1,349 $ 1,624 Total Restructuring Costs $ 275 $ 1,349 $ 1,624 Year Ended December 31, 20 17 (In thousands) Europe Architectural Corporate & Other Total 2016 Plan $ — 2,394 — $ 2,394 2015 Plan — — (7 ) (7 ) 2014 Plan — — (1,510 ) (1,510 ) Other (27 ) — — (27 ) Total Restructuring Costs $ (27 ) $ 2,394 $ (1,517 ) $ 850 Year Ended January 1, 2017 (In thousands) North American Residential Europe Corporate & Other Total 2016 Plan $ — $ 1,313 $ — $ 1,313 2015 Plan 19 — 113 132 Total Restructuring Costs $ 19 $ 1,313 $ 113 $ 1,445 Cumulative Amount Incurred Through December 30, 2018 (In thousands) North American Residential Europe Architectural Corporate & Other Total 2018 Plan $ 275 $ 1,349 $ — $ — $ 1,624 2016 Plan — — 3,707 — 3,707 2015 Plan — 2,335 — 3,274 5,609 2014 Plan — — — 7,993 7,993 Total Restructuring Costs $ 275 $ 3,684 $ 3,707 $ 11,267 $ 18,933 |
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, 2017 Severance Closure Costs Cash Payments December 30, 2018 2018 Plan $ — $ 859 $ 765 $ (1,028 ) $ 596 2016 Plan 90 — — (90 ) — Other 194 — — (136 ) 58 Total $ 284 $ 859 $ 765 $ (1,254 ) $ 654 (In thousands) January 1, 2017 Severance Closure Costs Cash (Payments) Receipts December 31, 2017 2016 Plan $ 1,300 $ 116 $ 2,278 $ (3,604 ) $ 90 2015 Plan 282 (7 ) — (275 ) — 2014 Plan 426 — (1,510 ) 1,084 — Other 465 — (27 ) (244 ) 194 Total $ 2,473 $ 109 $ 741 $ (3,039 ) $ 284 (In thousands) January 3, 2016 Severance Closure Costs Cash Payments January 1, 2017 2016 Plan $ — $ 1,313 $ — $ (13 ) $ 1,300 2015 Plan 774 107 25 (624 ) 282 2014 Plan 442 — — (16 ) 426 Other 1,174 — — (709 ) 465 Total $ 2,390 $ 1,420 $ 25 $ (1,362 ) $ 2,473 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | For financial reporting purposes, income before income taxes includes the following components: Year Ended (In thousands) December 30, 2018 December 31, 2017 January 1, 2017 Income before income tax expense (benefit): Canada $ 19,552 $ 25,617 $ 25,982 Foreign 100,805 103,804 99,947 Total income before income tax expense (benefit) $ 120,357 $ 129,421 $ 125,929 |
Income tax expense (benefit) for income taxes | Income tax expense (benefit) for income taxes consists of the following: Year Ended (In thousands) December 30, 2018 December 31, 2017 January 1, 2017 Current income tax expense (benefit): Canada $ 7,997 $ 7,293 $ 6,740 Foreign 5,253 (623 ) 2,129 Total current income tax expense: 13,250 6,670 8,869 Deferred income tax expense (benefit): Canada 122 (22,287 ) 3,045 Foreign 10,441 (11,943 ) 9,873 Total deferred income tax expense (benefit): 10,563 (34,230 ) 12,918 Income tax expense (benefit) $ 23,813 $ (27,560 ) $ 21,787 |
Schedule of Effective Income Tax Rate Reconciliation | A summary of the differences between expected income tax expense calculated at the Canadian statutory rate and the reported consolidated income tax expense (benefit) follows: Year Ended (In thousands) December 30, 2018 December 31, 2017 January 1, 2017 Income tax expense computed at statutory income tax rate $ 31,895 $ 34,477 $ 33,710 Foreign rate differential (4,926 ) 2,772 6,125 Permanent differences (1,822 ) 1,527 1,159 Deconsolidation and disposition (21 ) (160 ) (2,027 ) Income attributable to a permanent establishment 1,873 347 637 Change in valuation allowance 3,878 (27,603 ) (586 ) Tax exempt income (5,673 ) (6,469 ) (9,411 ) Share based compensation (737 ) (7,583 ) (6,080 ) Income tax credits (3,252 ) (1,833 ) (2,389 ) Foreign exchange gains (losses) (2,683 ) 770 (277 ) Unrecognized tax benefits 646 (116 ) 2,232 Change in tax rate (284 ) 1,209 (1,130 ) Change in tax rate due to U.S. reform — (27,138 ) — Limitation on executive compensation 2,038 — — Withholding and other taxes 3,631 1,943 — Other (750 ) 297 (176 ) Income tax expense (benefit) $ 23,813 $ (27,560 ) $ 21,787 |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities are presented below: Year Ended (In thousands) December 30, 2018 December 31, 2017 Deferred tax assets: Non-capital loss carryforwards $ 24,536 $ 34,605 Capital loss carryforwards 12,674 13,498 Deferred interest expense 8,990 8,671 Pension and post-retirement liability 3,410 4,493 Accruals and reserves currently not deductible for tax purposes 16,683 14,954 Share based compensation 3,314 6,137 Income tax credits 5,694 3,713 Other 2,114 3,875 Total deferred tax assets 77,415 89,946 Valuation allowance (16,373 ) (13,912 ) Total deferred tax assets, net of valuation allowance 61,042 76,034 Deferred tax liabilities: Plant and equipment (64,831 ) (60,571 ) Intangibles (35,740 ) (30,578 ) Basis difference in subsidiaries (7,070 ) (6,558 ) Unrealized foreign exchange gain (5,102 ) (6,753 ) Other (1,912 ) (2,495 ) Total deferred tax liabilities (114,655 ) (106,955 ) Net deferred tax liability $ (53,613 ) $ (30,921 ) |
Summary of Valuation Allowance | The following is a rollforward of the valuation allowance for deferred tax assets: Year Ended (In thousands) December 30, 2018 December 31, 2017 January 1, 2017 Balance at beginning of period $ 13,912 $ 36,800 $ 40,857 Additions charged to expense and other 12,590 5,566 2,433 Deductions (10,129 ) (28,454 ) (6,490 ) Balance at end of period $ 16,373 $ 13,912 $ 36,800 |
Summary of Operating Loss Carryforwards | We can apply these losses against future taxable income as follows: (In thousands) Canada United States Other Foreign Total 2019-2026 $ — $ — $ 5,230 $ 5,230 2027-2046 32,472 16,972 — 49,444 Indefinitely — — 39,128 39,128 Total tax losses carried forward $ 32,472 $ 16,972 $ 44,358 $ 93,802 |
Schedule of Unrecognized Tax Benefits Roll Forward | The changes to our unrecognized tax benefits were as follows: Year Ended (In thousands) December 30, 2018 December 31, 2017 January 1, 2017 Unrecognized tax benefit at beginning of period $ 8,560 $ 9,004 $ 3,382 Gross increases in tax positions in current period 508 1,208 5,950 Gross decreases in tax positions in prior period (244 ) (464 ) (335 ) Gross increases in tax positions in prior period 274 1,336 271 Lapse of statute of limitations (14 ) (17 ) (264 ) Decrease due to change in tax rate — (2,507 ) — Unrecognized tax benefit at end of period $ 9,084 $ 8,560 $ 9,004 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 30, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | (In thousands, except share and per share information) Year Ended December 30, 2018 December 31, 2017 January 1, 2017 Net income attributable to Masonite $ 92,710 $ 151,739 $ 98,622 Shares used in computing basic earnings per share 27,412,268 29,298,236 30,359,193 Effect of dilutive securities: Incremental shares issuable under share compensation plans 452,960 516,423 741,883 Shares used in computing diluted earnings per share 27,865,228 29,814,659 31,101,076 Basic earnings per common share attributable to Masonite $ 3.38 $ 5.18 $ 3.25 Diluted earnings per common share attributable to Masonite 3.33 5.09 3.17 Anti-dilutive instruments excluded from diluted earnings per common share: Stock appreciation rights 120,881 51,129 — |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 30, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Certain information with respect to reportable segments is as follows for the periods indicated: Year Ended December 30, 2018 (In thousands) North American Residential Europe Architectural Corporate & Other Total Sales $ 1,458,957 $ 371,069 $ 340,609 $ 22,869 $ 2,193,504 Intersegment sales (4,198 ) (2,066 ) (17,137 ) — (23,401 ) Net sales to external customers $ 1,454,759 $ 369,003 $ 323,472 $ 22,869 $ 2,170,103 Adjusted EBITDA $ 202,465 $ 44,985 $ 37,742 $ (17,256 ) $ 267,936 Depreciation and amortization 31,425 24,638 19,667 11,942 87,672 Interest expense, net — — — 39,008 39,008 Income tax expense — — — 23,813 23,813 Year Ended December 31, 2017 (In thousands) North American Residential Europe Architectural Corporate & Other Total Sales $ 1,433,268 $ 295,862 $ 307,237 $ 23,605 $ 2,059,972 Intersegment sales (4,338 ) (3,936 ) (18,773 ) — (27,047 ) Net sales to external customers $ 1,428,930 $ 291,926 $ 288,464 $ 23,605 $ 2,032,925 Adjusted EBITDA $ 200,179 $ 33,820 $ 30,050 $ (9,543 ) $ 254,506 Depreciation and amortization 33,167 17,455 17,774 13,507 81,903 Interest expense, net — — — 30,153 30,153 Income tax benefit — — — (27,560 ) (27,560 ) Year Ended January 1, 2017 (In thousands) North American Residential Europe Architectural Corporate & Other Total Sales $ 1,357,228 $ 305,710 $ 312,241 $ 23,607 $ 1,998,786 Intersegment sales (5,926 ) (4,543 ) (14,353 ) — (24,822 ) Net sales to external customers $ 1,351,302 $ 301,167 $ 297,888 $ 23,607 $ 1,973,964 Adjusted EBITDA $ 212,619 $ 39,028 $ 25,160 $ (24,794 ) $ 252,013 Depreciation and amortization 35,542 17,549 17,621 11,619 82,331 Interest expense, net — — — 28,178 28,178 Income tax expense — — — 21,787 21,787 |
Reconciliation of consolidated Adjusted EBITDA to net income (loss) attributable to Masonite | A reconciliation of our consolidated Adjusted EBITDA to net income attributable to Masonite is set forth as follows for the periods indicated: Year Ended (In thousands) December 30, 2018 December 31, 2017 January 1, 2017 Adjusted EBITDA $ 267,936 $ 254,506 $ 252,013 Less (plus): Depreciation 59,089 57,528 57,604 Amortization 28,583 24,375 24,727 Share based compensation expense 7,681 11,644 18,790 Loss on disposal of property, plant and equipment 3,470 1,893 2,111 Restructuring costs 1,624 850 1,445 Asset impairment 5,243 — 1,511 Loss (gain) on disposal of subsidiaries — 212 (6,575 ) Interest expense, net 39,008 30,153 28,178 Loss on extinguishment of debt 5,414 — — Other income, net of expense (2,533 ) (1,570 ) (1,707 ) Income tax expense (benefit) 23,813 (27,560 ) 21,787 Net income attributable to non-controlling interest 3,834 5,242 5,520 Net income attributable to Masonite $ 92,710 $ 151,739 $ 98,622 |
Revenue from External Customers by Products and Services | Sales for the product lines are summarized as follows for the periods indicated: Year Ended (In thousands) December 30, 2018 December 31, 2017 January 1, 2017 Net sales to external customers: Interior products $ 1,560,949 $ 1,407,041 $ 1,378,959 Exterior products 508,449 526,487 496,617 Components 100,705 99,397 98,388 Total $ 2,170,103 $ 2,032,925 $ 1,973,964 |
Revenue from External Customers by Geographic Areas | Net sales information with respect to geographic areas exceeding 10% of consolidated net sales is as follows for the periods indicated: Year Ended (In thousands) December 30, 2018 December 31, 2017 January 1, 2017 Net sales to external customers from facilities in: United States $ 1,388,680 $ 1,333,223 $ 1,284,982 Canada 329,292 327,644 306,130 United Kingdom 328,669 253,564 262,854 Other 123,462 118,494 119,998 Total $ 2,170,103 $ 2,032,925 $ 1,973,964 |
Property, Plant and Equipment by Country | Geographic information regarding property, plant and equipment which exceed 10% of consolidated property, plant and equipment used in continuing operations is as follows as of the dates indicated: (In thousands) December 30, 2018 December 31, 2017 United States $ 412,072 $ 369,630 Canada 62,626 67,358 Other 135,055 138,504 Total $ 609,753 $ 575,492 |
Employee Future Benefits (Table
Employee Future Benefits (Tables) | 12 Months Ended |
Dec. 30, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Expected Benefit Payments | As of December 30, 2018 , the estimated future benefit payments from the U.S. and U.K. defined benefit pension plans for the following future periods are set forth as follows: (In thousands) Expected Future Benefit Payments Fiscal year: 2019 $ 6,924 2020 7,188 2021 7,435 2022 7,526 2023 7,593 2024 through 2028 38,486 Total estimated future benefit payments $ 75,152 |
UNITED STATES | Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Net Benefit Costs | Information about the U.S. defined benefit pension plan is as follows for the periods indicated: Year Ended (In thousands) December 30, 2018 December 31, 2017 January 1, 2017 Components of net periodic benefit cost: Service cost $ 670 $ 811 $ 286 Interest cost 3,322 3,421 3,570 Expected return on assets (6,253 ) (5,852 ) (5,373 ) Amortization of actuarial net losses 1,149 1,113 1,070 Net pension benefit $ (1,112 ) $ (507 ) $ (447 ) |
Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan | Information with respect to the assets, liabilities and net accrued benefit obligation of the U.S. defined benefit pension plan is set forth as follows for the periods indicated: Year Ended (In thousands) December 30, 2018 December 31, 2017 Pension assets: Fair value of plan assets, beginning of year $ 92,716 $ 83,550 Company contributions 5,000 5,000 Actual return on plan assets (4,453 ) 10,704 Benefits paid (5,730 ) (5,915 ) Administrative expenses paid (541 ) (623 ) Fair value of plan assets, end of year 86,992 92,716 Pension liability: Accrued benefit obligation, beginning of year 104,909 100,887 Current service cost 670 811 Interest cost 3,322 3,421 Actuarial loss (gain) (7,459 ) 6,328 Benefits paid (5,730 ) (5,915 ) Administrative expenses paid (541 ) (623 ) Accrued benefit obligation, end of year 95,171 104,909 Net accrued benefit obligation, end of year $ 8,179 $ 12,193 |
Schedule of Allocation of Plan Assets | Information with respect to the amounts and types of securities that are held in the U.S. defined benefit pension plan is set forth as follows for the periods indicated: Year Ended December 30, 2018 December 31, 2017 (In thousands) Amount % of Total Plan Amount % of Total Plan Equity securities $ 51,412 59.1 % $ 54,517 58.8 % Debt securities 32,361 37.2 % 33,470 36.1 % Other 3,219 3.7 % 4,729 5.1 % $ 86,992 100.0 % $ 92,716 100.0 % |
Schedule of Assumptions Used | The weighted average actuarial assumptions adopted in measuring our U.S. accrued benefit obligations and costs were as follows for the periods indicated: Year Ended December 30, 2018 December 31, 2017 January 1, 2017 Discount rate applied for: Accrued benefit obligation 4.3 % 3.6 % 4.2 % Net periodic pension cost 3.6 % 4.2 % 4.5 % Expected long-term rate of return on plan assets 6.8 % 7.0 % 7.0 % |
UNITED KINGDOM | Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Net Benefit Costs | Information about the U.K. defined benefit pension plan is as follows for the periods indicated: Year Ended December 30, 2018 December 31, 2017 January 1, 2017 Components of net periodic benefit cost: Interest cost $ 648 $ 685 $ 873 Expected return on assets (990 ) (429 ) (640 ) Amortization of actuarial net losses 142 — — Net pension expense (benefit) $ (200 ) $ 256 $ 233 |
Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan | Information with respect to the assets, liabilities and net accrued benefit obligation of the U.K. defined benefit pension plan is as follows for the periods indicated: Year Ended (In thousands) December 30, 2018 December 31, 2017 Pension assets: Fair value of plan assets, beginning of year $ 25,141 $ 21,011 Company contributions 661 1,002 Actual return on plan assets (1,106 ) 1,867 Benefits paid (886 ) (800 ) Translation adjustment (1,503 ) 2,061 Fair value of plan assets, end of year 22,307 25,141 Pension liability Accrued benefit obligation, beginning of year 30,812 29,095 Interest cost 648 685 Actuarial gain (962 ) (833 ) Benefits paid (886 ) (800 ) Plan amendment 585 — Translation adjustment (1,894 ) 2,665 Accrued benefit obligation, end of year 28,303 30,812 Net accrued benefit obligation, end of year $ 5,996 $ 5,671 |
Schedule of Allocation of Plan Assets | Information with respect to the amounts and types of securities that are held in the U.K. defined benefit pension plan is set forth as follows for the periods indicated: Year Ended December 30, 2018 December 31, 2017 (In thousands) Amount % of Total Plan Amount % of Total Plan Equity securities $ 10,207 45.8 % $ 11,855 47.2 % Debt securities 11,909 53.3 % 12,949 51.5 % Other 191 0.9 % 337 1.3 % $ 22,307 100.0 % $ 25,141 100.0 % |
Schedule of Assumptions Used | The weighted average actuarial assumptions adopted in measuring our U.K. accrued benefit obligations and costs were as follows for the periods indicated: Year Ended December 30, 2018 December 31, 2017 January 1, 2017 Discount rate applied for: Accrued benefit obligation 2.7 % 2.4 % 2.6 % Net periodic pension cost 2.4 % 2.2 % 2.3 % Expected long-term rate of return on plan assets 4.2 % 4.0 % 3.9 % |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income and Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 30, 2018 | |
Equity [Abstract] | |
Schedule of components of accumulated other comprehensive income (loss) | A rollforward of the components of accumulated other comprehensive loss is as follows for the periods indicated: Year Ended (In thousands) December 30, 2018 December 31, 2017 January 1, 2017 Accumulated foreign exchange losses, beginning of period $ (89,824 ) $ (127,433 ) $ (90,111 ) Foreign exchange gain (loss) (40,880 ) 38,758 (35,666 ) Income tax expense on foreign exchange losses (60 ) (609 ) — Cumulative translation adjustment recognized upon deconsolidation of subsidiaries — 212 (1,431 ) Less: foreign exchange gain (loss) attributable to non-controlling interest (834 ) 752 225 Accumulated foreign exchange losses, end of period (129,930 ) (89,824 ) (127,433 ) Accumulated pension and other post-retirement adjustments, beginning of period (20,328 ) (21,553 ) (17,837 ) Pension and other post-retirement adjustments (4,754 ) 529 (5,941 ) Income tax benefit on pension and other post-retirement adjustments 1,113 39 1,578 Amortization of actuarial net losses 1,291 1,113 1,070 Income tax expense on amortization of actuarial net losses (311 ) (456 ) (423 ) Accumulated pension and other post-retirement adjustments (22,989 ) (20,328 ) (21,553 ) Accumulated other comprehensive loss $ (152,919 ) $ (110,152 ) $ (148,986 ) Other comprehensive income (loss), net of tax: $ (43,601 ) $ 39,586 $ (40,813 ) Less: other comprehensive income (loss) attributable to non-controlling interest (834 ) 752 225 Other comprehensive income (loss) attributable to Masonite $ (42,767 ) $ 38,834 $ (41,038 ) |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 30, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |
Cash and non-cash transactions | Certain cash transactions were as follows for the periods indicated: Year Ended (In thousands) December 30, 2018 December 31, 2017 January 1, 2017 Transactions involving cash: Interest paid $ 35,877 $ 27,396 $ 26,862 Interest received 1,304 381 279 Income taxes paid 10,858 10,169 9,475 Income tax refunds 124 68 1,469 |
Schedule of cash and cash equivalents | December 30, 2018 December 31, 2017 Cash and cash equivalents $ 115,656 $ 176,669 Restricted cash 10,485 11,895 Total cash, cash equivalents and restricted cash $ 126,141 $ 188,564 |
Variable Interest Entity (Table
Variable Interest Entity (Tables) | 12 Months Ended |
Dec. 30, 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) December 30, December 31, Current assets $ 9,632 $ 7,213 Property, plant and equipment, net 9,327 11,344 Long-term deferred income taxes 4,306 5,472 Other assets 3,122 3,386 Current liabilities (2,653 ) (2,326 ) Other long-term liabilities (859 ) (1,699 ) Non-controlling interest (3,835 ) (4,029 ) Net assets of the VIE consolidated by Masonite $ 19,040 $ 19,361 |
Supplemental Unaudited Quarte_2
Supplemental Unaudited Quarterly FInancial Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | Quarter Ended (In thousands, except per share information) December 30, September 30, July 1, April 1, Net sales $ 528,350 $ 557,148 $ 566,726 $ 517,879 Cost of goods sold 432,989 446,306 443,052 412,450 Gross profit 95,361 110,842 123,674 105,429 Selling, general and administration expenses 61,601 64,530 71,851 68,211 Restructuring costs 1,624 — — — Asset impairment 5,243 — — — Operating income 26,893 46,312 51,823 37,218 Interest expense, net 11,027 10,151 9,074 8,756 Loss on extinguishment of debt — 5,414 — — Other income, net of expense (724 ) (948 ) (839 ) (22 ) Income before income tax expense 16,590 31,695 43,588 28,484 Income tax expense 3,067 6,151 7,894 6,701 Net income 13,523 25,544 35,694 21,783 Less: net income attributable to non-controlling interest 1,176 748 953 957 Net income attributable to Masonite $ 12,347 $ 24,796 $ 34,741 $ 20,826 Basic earnings per common share attributable to Masonite $ 0.47 $ 0.90 $ 1.26 $ 0.74 Diluted earnings per common share attributable to Masonite 0.46 0.89 1.24 0.73 Quarter Ended December 31, October 1, July 2, April 2, Net sales $ 508,500 $ 517,503 $ 519,741 $ 487,181 Cost of goods sold 408,386 413,517 412,415 391,624 Gross profit 100,114 103,986 107,326 95,557 Selling, general and administration expenses 59,874 59,063 63,870 65,110 Restructuring costs (136 ) 1,393 (700 ) 293 Loss on disposal of subsidiaries — — 212 — Operating income 40,376 43,530 43,944 30,154 Interest expense, net 8,804 7,213 7,112 7,024 Other income, net of expense (835 ) (312 ) (154 ) (269 ) Income before income tax expense (benefit) 32,407 36,629 36,986 23,399 Income tax expense (benefit) (40,802 ) 5,989 8,932 (1,679 ) Net income 73,209 30,640 28,054 25,078 Less: net income attributable to non-controlling interest 1,397 1,162 1,170 1,513 Net income attributable to Masonite $ 71,812 $ 29,478 $ 26,884 $ 23,565 Basic earnings per common share attributable to Masonite $ 2.52 $ 1.01 $ 0.90 $ 0.79 Diluted earnings per common share attributable to Masonite 2.48 1.00 0.89 0.77 |
Business Overview and Signifi_4
Business Overview and Significant Accounting Policies Business Overview and Significant Accounting Policies (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 30, 2018USD ($)Countryfacility | Sep. 30, 2018USD ($) | Jul. 01, 2018USD ($) | Apr. 01, 2018USD ($) | Dec. 31, 2017USD ($) | Oct. 01, 2017USD ($) | Jul. 02, 2017USD ($) | Apr. 02, 2017USD ($) | Dec. 30, 2018USD ($)Countryfacility | Dec. 31, 2017USD ($) | Jan. 01, 2017USD ($) | Dec. 31, 2018USD ($) | |
Property, Plant and Equipment [Line Items] | ||||||||||||
Manufacturing locations | facility | 71 | 71 | ||||||||||
Number of countries | Country | 8 | 8 | ||||||||||
Other income, net of expense | $ 724 | $ 948 | $ 839 | $ 22 | $ 835 | $ 312 | $ 154 | $ 269 | $ 2,533 | $ 1,570 | $ 1,707 | |
Effect on net cash used in investing activities | (254,477) | (90,134) | (76,916) | |||||||||
Selling, general and administration expenses | 61,601 | $ 64,530 | $ 71,851 | $ 68,211 | 59,874 | $ 59,063 | $ 63,870 | $ 65,110 | 266,193 | 247,917 | 260,864 | |
Advertising costs | 12,600 | 12,900 | 9,300 | |||||||||
Research and development costs | 7,300 | 7,500 | 6,700 | |||||||||
Other assets | 37,794 | 20,754 | 37,794 | 20,754 | ||||||||
Reclassification of prior period due to change in estimate [Member] | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Other income, net of expense | 600 | 800 | ||||||||||
Loss from discontinued operations | (600) | (800) | ||||||||||
Land | $ 1,900 | $ 1,900 | ||||||||||
Other assets | $ (1,900) | (1,900) | ||||||||||
Buildings | Minimum | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Useful lives of property, plant and equipment | 20 years | |||||||||||
Buildings | Maximum | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Useful lives of property, plant and equipment | 40 years | |||||||||||
Tooling | Minimum | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Useful lives of property, plant and equipment | 10 years | |||||||||||
Tooling | Maximum | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Useful lives of property, plant and equipment | 25 years | |||||||||||
Machinery and equipment | Minimum | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Useful lives of property, plant and equipment | 5 years | |||||||||||
Machinery and equipment | Maximum | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Useful lives of property, plant and equipment | 25 years | |||||||||||
Molds and Dies | Minimum | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Useful lives of property, plant and equipment | 12 years | |||||||||||
Molds and Dies | Maximum | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Useful lives of property, plant and equipment | 25 years | |||||||||||
Office Equipment, Fixtures and Fittings | Minimum | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Useful lives of property, plant and equipment | 3 years | |||||||||||
Office Equipment, Fixtures and Fittings | Maximum | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Useful lives of property, plant and equipment | 12 years | |||||||||||
Information Technology Systems | Minimum | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Useful lives of property, plant and equipment | 5 years | |||||||||||
Information Technology Systems | Maximum | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Useful lives of property, plant and equipment | 15 years | |||||||||||
Customer relationships | Maximum | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Useful lives of finite-lived intangible assets | 10 years | |||||||||||
Patents | Maximum | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Useful lives of finite-lived intangible assets | 17 years | |||||||||||
System Software Development | Maximum | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Useful lives of finite-lived intangible assets | 5 years | |||||||||||
Accounting Standards Update 2017-07 | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Other income, net of expense | 1,100 | 500 | ||||||||||
Selling, general and administration expenses | (1,100) | (500) | ||||||||||
Accounting Standards Update 2016-18 | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Effect on net cash used in investing activities | $ (300) | $ (400) | ||||||||||
Subsequent Event | Topic 842 | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Operating lease, right-of-use asset | $ 108,000 | |||||||||||
Operating lease, liability | $ 113,900 |
Business Overview and Signifi_5
Business Overview and Significant Accounting Policies (Product Warranty Rollforward) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Warranty Provision [Rollforward] | |||
Balance at beginning of period | $ 2,189 | $ 2,717 | $ 3,318 |
Additions charged to expense | 6,965 | 5,715 | 3,219 |
Deductions | (4,884) | (6,243) | (3,820) |
Balance at end of period | $ 4,270 | $ 2,189 | $ 2,717 |
Acquisitions and Dispositions_2
Acquisitions and Dispositions (Narrative) (Details) - USD ($) $ in Thousands | Nov. 01, 2018 | Jun. 01, 2018 | Jan. 29, 2018 | Oct. 02, 2017 | Nov. 03, 2016 | Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 |
Business Acquisition [Line Items] | ||||||||
Cash consideration, net of cash acquired | $ 157,363 | $ 13,813 | $ 8,551 | |||||
BWI | ||||||||
Business Acquisition [Line Items] | ||||||||
Cash consideration, net of cash acquired | $ 22,087 | |||||||
Goodwill | 3,349 | |||||||
Gross contractual value of acquired trade receivables | $ 9,300 | |||||||
Graham & Maiman | ||||||||
Business Acquisition [Line Items] | ||||||||
Cash consideration, net of cash acquired | $ 38,967 | |||||||
Goodwill | $ 10,996 | |||||||
DW3 | ||||||||
Business Acquisition [Line Items] | ||||||||
Acquired equity interests, percent | 100.00% | |||||||
Cash consideration, net of cash acquired | $ 96,309 | |||||||
Goodwill | 33,623 | |||||||
Gross contractual value of acquired trade receivables | $ 9,100 | |||||||
A&F Wood Products, Inc. | ||||||||
Business Acquisition [Line Items] | ||||||||
Acquired equity interests, percent | 100.00% | |||||||
Cash consideration, net of cash acquired | $ 13,813 | |||||||
Goodwill | 5,895 | |||||||
Gross contractual value of acquired trade receivables | $ 2,200 | |||||||
FyreWerks | ||||||||
Business Acquisition [Line Items] | ||||||||
Acquired equity interests, percent | 100.00% | |||||||
Cash consideration, net of cash acquired | $ 8,000 | |||||||
Goodwill | $ 7,300 | |||||||
Customer relationships | BWI | ||||||||
Business Acquisition [Line Items] | ||||||||
Amortization period for acquired customer relationships | 10 years | |||||||
Customer relationships | Graham & Maiman | ||||||||
Business Acquisition [Line Items] | ||||||||
Amortization period for acquired customer relationships | 10 years | |||||||
Customer relationships | DW3 | ||||||||
Business Acquisition [Line Items] | ||||||||
Amortization period for acquired customer relationships | 10 years | |||||||
Customer relationships | A&F Wood Products, Inc. | ||||||||
Business Acquisition [Line Items] | ||||||||
Amortization period for acquired customer relationships | 10 years |
Acquisitions and Dispositions_3
Acquisitions and Dispositions (Aggregate Consideration) (Details) - USD ($) $ in Thousands | Nov. 01, 2018 | Jun. 01, 2018 | Jan. 29, 2018 | Oct. 02, 2017 | Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 |
Business Acquisition [Line Items] | |||||||
Cash consideration, net of cash acquired | $ 157,363 | $ 13,813 | $ 8,551 | ||||
BWI | |||||||
Business Acquisition [Line Items] | |||||||
Accounts receivable | $ 9,215 | ||||||
Inventory | 10,736 | ||||||
Property, plant and equipment | 2,222 | ||||||
Goodwill | 3,349 | ||||||
Intangible assets | 2,970 | ||||||
Accounts payable and accrued expenses | (6,645) | ||||||
Deferred income taxes | 0 | ||||||
Other assets and liabilities, net | 240 | ||||||
Cash consideration, net of cash acquired | $ 22,087 | ||||||
Graham & Maiman | |||||||
Business Acquisition [Line Items] | |||||||
Accounts receivable | $ 0 | ||||||
Inventory | 6,090 | ||||||
Property, plant and equipment | 19,557 | ||||||
Goodwill | 10,996 | ||||||
Intangible assets | 2,750 | ||||||
Accounts payable and accrued expenses | (426) | ||||||
Deferred income taxes | 0 | ||||||
Other assets and liabilities, net | 0 | ||||||
Cash consideration, net of cash acquired | $ 38,967 | ||||||
DW3 | |||||||
Business Acquisition [Line Items] | |||||||
Accounts receivable | $ 8,590 | ||||||
Inventory | 5,059 | ||||||
Property, plant and equipment | 8,196 | ||||||
Goodwill | 33,623 | ||||||
Intangible assets | 62,873 | ||||||
Accounts payable and accrued expenses | (10,418) | ||||||
Deferred income taxes | (11,546) | ||||||
Other assets and liabilities, net | (68) | ||||||
Cash consideration, net of cash acquired | $ 96,309 | ||||||
2018 Acquisitions | |||||||
Business Acquisition [Line Items] | |||||||
Accounts receivable | 17,805 | ||||||
Inventory | 21,885 | ||||||
Property, plant and equipment | 29,975 | ||||||
Goodwill | 47,968 | ||||||
Intangible assets | 68,593 | ||||||
Accounts payable and accrued expenses | (17,489) | ||||||
Deferred income taxes | (11,546) | ||||||
Other assets and liabilities, net | 172 | ||||||
Cash consideration, net of cash acquired | $ 157,363 | ||||||
A&F Wood Products, Inc. | |||||||
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 and Dispositions_4
Acquisitions and Dispositions (Revenues and Earnings) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 30, 2018 | Dec. 31, 2017 | |
BWI | ||
Business Acquisition [Line Items] | ||
Net Sales | $ 13,168 | |
Net income (loss) attributable to Masonite | (1,231) | |
Graham & Maiman | ||
Business Acquisition [Line Items] | ||
Net Sales | 38,901 | |
Net income (loss) attributable to Masonite | 314 | |
DW3 | ||
Business Acquisition [Line Items] | ||
Net Sales | 68,474 | |
Net income (loss) attributable to Masonite | 6,712 | |
2018 Acquisitions | ||
Business Acquisition [Line Items] | ||
Net Sales | 120,543 | |
Net income (loss) attributable to Masonite | 5,795 | |
A&F Wood Products, Inc. | ||
Business Acquisition [Line Items] | ||
Net Sales | 15,540 | $ 3,883 |
Net income (loss) attributable to Masonite | $ 1,684 | $ 825 |
Acquisitions and Dispositions_5
Acquisitions and Dispositions (Pro Forma Information) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 30, 2018 | Sep. 30, 2018 | Jul. 01, 2018 | Apr. 01, 2018 | Dec. 31, 2017 | Oct. 01, 2017 | Jul. 02, 2017 | Apr. 02, 2017 | Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Business Acquisition, Pro Forma Information [Line Items] | |||||||||||
Net sales | $ 528,350 | $ 557,148 | $ 566,726 | $ 517,879 | $ 508,500 | $ 517,503 | $ 519,741 | $ 487,181 | $ 2,170,103 | $ 2,032,925 | $ 1,973,964 |
Pro forma revenue | 2,246,298 | 2,228,331 | 1,987,825 | ||||||||
Net income (loss) attributable to Masonite | $ 12,347 | $ 24,796 | $ 34,741 | $ 20,826 | $ 71,812 | $ 29,478 | $ 26,884 | $ 23,565 | 92,710 | 151,739 | 98,622 |
Pro forma net income (loss) attributable to Masonite | $ 93,316 | $ 153,407 | $ 99,621 | ||||||||
Basic earnings (loss) per common share attributable to Masonite (in dollars per share) | $ 0.47 | $ 0.90 | $ 1.26 | $ 0.74 | $ 2.52 | $ 1.01 | $ 0.90 | $ 0.79 | $ 3.38 | $ 5.18 | $ 3.25 |
Pro forma earnings per share, basic (in dollars per share) | 3.40 | 5.24 | 3.28 | ||||||||
Diluted earnings per common share attributable to Masonite (in dollars per share) | $ 0.46 | $ 0.89 | $ 1.24 | $ 0.73 | $ 2.48 | $ 1 | $ 0.89 | $ 0.77 | 3.33 | 5.09 | 3.17 |
Pro forma earnings per share, diluted (in dollars per share) | $ 3.35 | $ 5.15 | $ 3.20 | ||||||||
BWI | |||||||||||
Business Acquisition, Pro Forma Information [Line Items] | |||||||||||
Pro forma revenue | $ 77,110 | $ 104,291 | |||||||||
Pro forma net income (loss) attributable to Masonite | 436 | (1,811) | |||||||||
Graham & Maiman | |||||||||||
Business Acquisition, Pro Forma Information [Line Items] | |||||||||||
Pro forma revenue | 26,887 | 65,468 | |||||||||
Pro forma net income (loss) attributable to Masonite | 89 | 145 | |||||||||
DW3 | |||||||||||
Business Acquisition, Pro Forma Information [Line Items] | |||||||||||
Pro forma revenue | 4,918 | 58,086 | |||||||||
Pro forma net income (loss) attributable to Masonite | 81 | 2,035 | |||||||||
2018 Acquisitions | |||||||||||
Business Acquisition, Pro Forma Information [Line Items] | |||||||||||
Pro forma intercompany sales | 32,720 | ||||||||||
Pro forma net income resulting from intercompany sales | $ 0 | ||||||||||
A&F Wood Products, Inc. | |||||||||||
Business Acquisition, Pro Forma Information [Line Items] | |||||||||||
Net sales | 11,104 | ||||||||||
Pro forma revenue | $ 13,861 | ||||||||||
Pro forma net income (loss) attributable to Masonite | 1,299 | $ 999 | |||||||||
2018 and 2017 Acquisitions | |||||||||||
Business Acquisition, Pro Forma Information [Line Items] | |||||||||||
Pro forma intercompany sales | 43,543 | ||||||||||
Pro forma net income resulting from intercompany sales | $ 0 |
Acquisitions and Dispositions D
Acquisitions and Dispositions Dispositions (Narrative) (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2016 | Dec. 31, 2017 | Oct. 01, 2017 | Jul. 02, 2017 | Apr. 02, 2017 | Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Cumulative translation adjustment | $ 0 | $ 212,000 | $ (1,431,000) | ||||||
Cash disposed of in sale of subsidiaries, net of proceeds | $ 15,100,000 | ||||||||
Equity investment in MAL | 0 | $ 10,000,000 | |||||||
Loss (gain) on disposal of subsidiaries | $ 5,100,000 | $ 0 | $ 0 | $ 212,000 | $ 0 | 0 | $ 212,000 | $ (6,575,000) | |
Hungary | |||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Cumulative translation adjustment | 200,000 | ||||||||
Romania | |||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Cumulative translation adjustment | $ 1,400,000 |
Acquisitions and Dispositions I
Acquisitions and Dispositions Intangible assets acquired (Details) - USD ($) $ in Thousands | Nov. 01, 2018 | Jun. 01, 2018 | Jan. 29, 2018 |
BWI | |||
Finite-Lived Intangible Assets [Line Items] | |||
Customer relationships | $ 1,200 | ||
Trademarks and trade names | 900 | ||
Patents | 0 | ||
Other | 870 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | $ 2,970 | ||
Graham & Maiman | |||
Finite-Lived Intangible Assets [Line Items] | |||
Customer relationships | $ 2,400 | ||
Trademarks and trade names | 350 | ||
Patents | 0 | ||
Other | 0 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | $ 2,750 | ||
DW3 | |||
Finite-Lived Intangible Assets [Line Items] | |||
Customer relationships | $ 49,554 | ||
Trademarks and trade names | 11,785 | ||
Patents | 1,420 | ||
Other | 114 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | $ 62,873 | ||
Customer relationships | BWI | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization period for acquired customer relationships | 10 years | ||
Customer relationships | Graham & Maiman | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization period for acquired customer relationships | 10 years | ||
Customer relationships | DW3 | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization period for acquired customer relationships | 10 years | ||
Trademarks and trade names | BWI | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization period for acquired customer relationships | 10 years | ||
Trademarks and trade names | Graham & Maiman | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization period for acquired customer relationships | 1 year 6 months | ||
Trademarks and trade names | DW3 | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization period for acquired customer relationships | 10 years | ||
Patents | DW3 | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization period for acquired customer relationships | 10 years | ||
Other | BWI | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization period for acquired customer relationships | 2 years 2 months 12 days | ||
Other | DW3 | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization period for acquired customer relationships | 3 years |
Accounts Receivable (Details)
Accounts Receivable (Details) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2018USD ($)Customer | Dec. 31, 2017USD ($) | Jan. 01, 2017USD ($) | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Balance at beginning of period | $ 1,785 | $ 1,010 | $ 3,125 |
Additions charged to expense | 676 | 793 | 103 |
Deductions | (352) | (18) | (2,218) |
Balance at end of period | $ 2,109 | $ 1,785 | $ 1,010 |
Accounts Receivable | Customer Concentration Risk | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Concentration Risk, Customers | Customer | 10 | ||
Concentration risk, customers | 10 | ||
Concentration risk, percent (greater than for Home Depot and Lowe's) | 54.60% | 56.20% | |
The Home Depot, Inc. | Accounts Receivable | Customer Concentration Risk | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Concentration risk, percent (greater than for Home Depot and Lowe's) | 10.00% | 10.00% | |
Lowe's Co., Inc. | Accounts Receivable | Customer Concentration Risk | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Concentration risk, percent (greater than for Home Depot and Lowe's) | 10.00% | 10.00% |
Inventories Inventory on Hand (
Inventories Inventory on Hand (Details) - USD ($) $ in Thousands | Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 |
Inventory Disclosure [Abstract] | ||||
Raw materials | $ 189,145 | $ 172,960 | ||
Finished goods | 69,026 | 68,851 | ||
Provision for obsolete or aged inventory | (7,764) | (7,769) | $ (5,747) | $ (6,508) |
Inventories, net | $ 250,407 | $ 234,042 |
Inventories Inventory Provision
Inventories Inventory Provision (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Inventory Valuation [Roll Forward] | |||
Balance at beginning of period | $ 7,769 | $ 5,747 | $ 6,508 |
Additions charged to expense | 3,146 | 3,283 | 1,724 |
Deductions | (3,151) | (1,261) | (2,485) |
Balance at end of period | $ 7,764 | $ 7,769 | $ 5,747 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Dec. 30, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 934,972 | $ 865,826 |
Accumulated depreciation | (325,219) | (290,334) |
Property, plant and equipment, net | 609,753 | 575,492 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 30,653 | 28,723 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 179,888 | 176,077 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 724,431 | $ 661,026 |
Property, Plant and Equipment_3
Property, Plant and Equipment (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation | $ 59,089 | $ 57,528 | $ 57,604 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 30, 2018 | Dec. 31, 2017 | |
Goodwill [Roll Forward] | ||
Goodwill, beginning | $ 138,449 | |
Goodwill, ending | 180,297 | $ 138,449 |
North American Residential Segment | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning | 2,867 | 2,843 |
Goodwill from acquisitions | 3,349 | 0 |
Foreign exchange fluctuations | (27) | 24 |
Goodwill, ending | 6,189 | 2,867 |
Europe Segment | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning | 35,431 | 32,410 |
Goodwill from acquisitions | 33,623 | 0 |
Foreign exchange fluctuations | (5,834) | 3,021 |
Goodwill, ending | 63,220 | 35,431 |
Architectural Segment | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning | 100,151 | 94,033 |
Goodwill from acquisitions | 10,996 | 5,895 |
Foreign exchange fluctuations | (259) | 223 |
Goodwill, ending | 110,888 | 100,151 |
Operating Segments | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning | 138,449 | 129,286 |
Goodwill from acquisitions | 47,968 | 5,895 |
Foreign exchange fluctuations | (6,120) | 3,268 |
Goodwill, ending | $ 180,297 | $ 138,449 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets (Cost and Accumulated Amortized Values) (Details) - USD ($) $ in Thousands | Dec. 30, 2018 | Dec. 31, 2017 |
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Cost | $ 272,415 | $ 213,426 |
Accumulated amortization | (136,401) | (130,690) |
Net book value | 136,014 | 82,736 |
Intangible Assets, Net (Excluding Goodwill) | 212,045 | 182,484 |
Total intangible assets, gross | 348,446 | 313,174 |
Customer relationships | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Cost | 173,637 | 146,802 |
Accumulated amortization | (81,220) | (77,441) |
Net book value | 92,417 | 69,361 |
Patents | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Cost | 31,363 | 29,795 |
Accumulated amortization | (21,840) | (20,250) |
Net book value | 9,523 | 9,545 |
Software | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Cost | 32,660 | 30,274 |
Accumulated amortization | (29,296) | (28,073) |
Net book value | 3,364 | 2,201 |
Trademarks and trade names | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Cost | 33,784 | 0 |
Accumulated amortization | (3,948) | 0 |
Net book value | 29,836 | 0 |
Other | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Cost | 971 | 6,555 |
Accumulated amortization | (97) | (4,926) |
Net book value | 874 | 1,629 |
Trademarks and Trade Names | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets, gross | $ 76,031 | $ 99,748 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets (Estimated Future Amortization of Intangible Assets) (Details) $ in Thousands | Dec. 30, 2018USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2,019 | $ 28,329 |
2,020 | 22,168 |
2,021 | 18,569 |
2,022 | 15,123 |
2,023 | $ 13,641 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Finite-Lived Intangible Assets [Line Items] | |||
Reclassified intangible assets | $ 272,415 | $ 213,426 | |
Amortization of intangible assets | 27,700 | $ 24,200 | $ 24,000 |
Intangible Assets, Amortization Period | Trade Names | |||
Finite-Lived Intangible Assets [Line Items] | |||
Reclassified intangible assets | $ 20,700 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | Dec. 30, 2018 | Dec. 31, 2017 |
Accrued Expenses [Abstract] | ||
Accrued payroll | $ 39,823 | $ 38,296 |
Accrued rebates | 36,711 | 34,488 |
Accrued interest | 14,570 | 10,688 |
Other accruals | 56,241 | 43,287 |
Total accrued expenses | $ 147,345 | $ 126,759 |
Long-Term Debt (Details)
Long-Term Debt (Details) - USD ($) $ in Thousands | Dec. 30, 2018 | Dec. 31, 2017 | Sep. 27, 2017 |
Debt Instrument [Line Items] | |||
Capital lease obligations | $ 13 | $ 378 | |
Other long-term debt | 1,095 | 1,200 | |
Total long-term debt | 796,398 | 625,657 | |
Senior Notes | |||
Debt Instrument [Line Items] | |||
Debt issuance costs | (8,394) | (6,635) | |
Senior Notes | Senior Notes Due 2026 | |||
Debt Instrument [Line Items] | |||
Long-term debt | 300,000 | 0 | |
Senior Notes | Senior Notes Due 2023 | |||
Debt Instrument [Line Items] | |||
Long-term debt | 500,000 | 625,000 | |
Unamortized premium | $ 3,684 | $ 5,714 | $ 6,000 |
Long-Term Debt (Narrative) (Det
Long-Term Debt (Narrative) (Details) - USD ($) | Apr. 09, 2015 | Dec. 30, 2018 | Sep. 30, 2018 | Jul. 01, 2018 | Apr. 01, 2018 | Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | Aug. 27, 2018 | Sep. 27, 2017 | Mar. 23, 2015 | Dec. 28, 2014 |
Debt Instrument [Line Items] | |||||||||||||
Proceeds from issuance of long-term debt | $ 300,000,000 | $ 156,746,000 | $ 390,000 | ||||||||||
Loss on extinguishment of debt | $ 0 | $ (5,414,000) | $ 0 | $ 0 | $ 5,414,000 | 0 | 0 | ||||||
Senior Notes Due 2026 | Debt Instrument, Redemption, Period Three | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Redemption price, percentage | 101.00% | ||||||||||||
Senior Notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest expense | $ 38,700,000 | 29,700,000 | $ 27,800,000 | ||||||||||
Senior Notes | Senior Notes Due 2026 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Aggregate principal of debt issued | $ 300,000,000 | ||||||||||||
Interest rate stated percentage | 5.75% | 5.75% | |||||||||||
Proceeds from issuance of long-term debt | $ 295,700,000 | ||||||||||||
Debt issuance cost | $ 4,300,000 | $ 4,300,000 | |||||||||||
Senior Notes | Senior Notes Due 2023 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Aggregate principal of debt issued | $ 150,000,000 | $ 475,000,000 | |||||||||||
Interest rate stated percentage | 5.625% | 5.625% | |||||||||||
Issuance price, percentage | 104.00% | 100.00% | |||||||||||
Unamortized premium | $ 3,684,000 | $ 3,684,000 | 5,714,000 | $ 6,000,000 | |||||||||
Write off of debt issuance costs | 1,100,000 | ||||||||||||
Proceeds from issuance of long-term debt | 153,900,000 | $ 467,900,000 | |||||||||||
Debt issuance cost | $ 2,100,000 | $ 7,100,000 | |||||||||||
Redemption premium | 5,300,000 | ||||||||||||
Write off of unamortized debt premium | 1,000,000 | ||||||||||||
Loss on extinguishment of debt | $ (5,400,000) | ||||||||||||
Senior Notes | Senior Notes Due 2023 | Debt Instrument, Redemption, Period Two | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Redemption price, premium, percentage | 0.50% | ||||||||||||
Senior Notes | Senior Notes Due 2023 | Debt Instrument, Redemption, Period Three | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Redemption price, percentage | 101.00% | ||||||||||||
Senior Notes | Senior Notes Due 2021 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Aggregate principal of debt issued | $ 500,000,000 | ||||||||||||
Interest rate stated percentage | 8.25% | ||||||||||||
Revolving Credit Facility | ABL Facility 2020 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Maximum borrowing capacity | $ 150,000,000 | ||||||||||||
Maximum pro forma secured leverage ratio | 4.5 | ||||||||||||
Line of credit, amount outstanding | $ 0 | $ 0 | $ 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 Contingencies_2
Commitments and Contingencies (Details) $ in Thousands | Dec. 30, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,019 | $ 24,249 |
2,020 | 23,904 |
2,021 | 18,823 |
2,022 | 14,333 |
2,023 | 12,389 |
Thereafter | 49,781 |
Total future minimum lease payments | $ 143,479 |
Commitments and Contingencies_3
Commitments and Contingencies (Narrative) (Details) $ in Millions | 12 Months Ended | ||
Dec. 30, 2018USD ($)Lease_Option | Dec. 31, 2017USD ($) | Jan. 01, 2017USD ($) | |
Operating Leased Assets [Line Items] | |||
Lease renewal term | 5 years | ||
Rent expense | $ | $ 32.3 | $ 28.8 | $ 26.3 |
Minimum | |||
Operating Leased Assets [Line Items] | |||
Lease renewal options | 0 | ||
Maximum | |||
Operating Leased Assets [Line Items] | |||
Lease renewal options | 3 |
Share Based Compensation Plan_2
Share Based Compensation Plans Narrative (Details) - USD ($) $ in Thousands | Jul. 12, 2012 | Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | Jun. 21, 2013 | Jun. 09, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation | $ 7,681 | $ 11,644 | $ 18,790 | |||
Share based compensation unrecognized | $ 10,600 | |||||
Weighted average remaining requisite service period | 1 year 4 months 24 days | |||||
Deferred compensation liability | $ 6,000 | 5,500 | ||||
Deferred compensation asset | $ 6,200 | 5,600 | ||||
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 | 947,921 | |||||
Stock Appreciation Rights (SARs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Plan term | 10 years | |||||
Award vesting period | 4 years | |||||
Fair value of shares vested | $ 700 | $ 400 | $ 2,400 | |||
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 | |||||
Fair value of shares vested | $ 13,800 | |||||
Award granted, fair value | $ 14,500 | |||||
Average requisite service period | 2 years 6 months | |||||
Units vested | 214,947 |
Share Based Compensation Plan_3
Share Based Compensation Plans (SARs) (Details) - Stock Appreciation Rights (SARs) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Outstanding, beginning of period, shares | 537,930 | 790,290 | 891,147 | |
Granted, shares | 69,752 | 59,265 | 121,805 | |
Exercised, shares | (93,369) | (281,444) | (176,416) | |
Forfeited, shares | (30,181) | (46,246) | ||
Outstanding, end of period, shares | 514,313 | 537,930 | 790,290 | 891,147 |
Exercisable, end of period, shares | 391,428 | 443,998 | 712,331 | |
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 | $ 36,681 | |
Exercised, aggregate intrinsic value | 4,731 | 16,378 | 8,954 | |
Outstanding, end period, aggregate intrinsic value | 7,254 | 23,263 | 32,659 | $ 36,681 |
Exercisable, end of period, aggregate intrinsic value | $ 7,254 | $ 22,588 | $ 32,080 | |
Outstanding, beginning of period, weighted average remaining contractual term | 4 years 7 months 6 days | 4 years 6 months | 4 years 7 months 6 days | 4 years 10 months 24 days |
Outstanding, end of period, weighted average remaining contractual term | 4 years 7 months 6 days | 4 years 6 months | 4 years 7 months 6 days | 4 years 10 months 24 days |
Exercisable, end of period, weighted average remaining contractual term | 3 years 4 months 24 days | 3 years 8 months 12 days | 4 years 1 month 6 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 | $ 20.07 | |
Granted, weighted average exercise price | 65 | 77 | 58.37 | |
Exercised, weighted average exercise price | 18.03 | 17.96 | 17.09 | |
Forfeited, weighted average exercise price | 54.28 | 57.47 | ||
Outstanding, end of period, weighted average exercise price | 39.01 | 32 | 24.47 | $ 20.07 |
Exercisable, end of period, weighted average exercise price | $ 30.20 | $ 24.28 | $ 20.77 |
Share Based Compensation Plan_4
Share Based Compensation Plans (Weighted Average Grant Date Assumptions) (Details) - $ / shares | 12 Months Ended | ||
Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Option value (model conclusion) | $ 18.63 | $ 22.65 | $ 16.78 |
Risk-free rate | 2.70% | 2.00% | 1.60% |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Expected volatility | 22.80% | 25.80% | 26.20% |
Expected term (in years) | 6 years | 6 years | 6 years |
Share Based Compensation Plan_5
Share Based Compensation Plans (RSUs) (Details) - Restricted Stock Units (RSUs) - $ / shares | 12 Months Ended | |||
Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 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 | 526,930 | |
Granted (shares) | 227,487 | 163,835 | 186,924 | |
Performance adjustment | 25,046 | [1] | 78,212 | 101,759 |
Delivered (shares) | (169,830) | (197,255) | (234,791) | |
Withheld to cover (shares) | (45,117) | [2] | (58,739) | (61,894) |
Forfeited (shares) | (26,157) | (70,381) | (17,002) | |
Outstanding, end of period (shares) | 429,027 | 417,598 | 501,926 | |
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 | $ 49.31 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | 63.55 | 78.29 | 58.29 | |
Share-based Compensation Arrangement by Share-based Payment Award Equity Instruments Other Than Options Vested and Undelivered Performance adjustment Weighted Average Grant Date Fair Value | 63.49 | 54.73 | 23.58 | |
Outstanding, end of period (weighted average grant date fair value) | $ 66.03 | $ 66.14 | $ 58.51 | |
[1] | Performance-based RSUs are presented as outstanding, granted and forfeited in the table above assuming targets are met and the awards pay out at 100%. The performance adjustment represents the difference in shares ultimately awarded due to performance attainment above or below target. | |||
[2] | 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 | 12 Months Ended | ||||||||||
Dec. 30, 2018 | Sep. 30, 2018 | Jul. 01, 2018 | Apr. 01, 2018 | Dec. 31, 2017 | Oct. 01, 2017 | Jul. 02, 2017 | Apr. 02, 2017 | Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring Reserve | $ 654 | $ 284 | $ 654 | $ 284 | $ 2,473 | $ 2,390 | ||||||
Restructuring costs, net | 1,624 | $ 0 | $ 0 | $ 0 | (136) | $ 1,393 | $ (700) | $ 293 | 1,624 | 850 | 1,445 | |
Cumulative amount incurred to date | 18,933 | 18,933 | ||||||||||
Payments for Restructuring | (1,254) | (3,039) | (1,362) | |||||||||
North American Residential Segment | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring costs, net | 275 | 19 | ||||||||||
Cumulative amount incurred to date | 275 | 275 | ||||||||||
Europe Segment | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring costs, net | 1,349 | (27) | 1,313 | |||||||||
Cumulative amount incurred to date | 3,684 | 3,684 | ||||||||||
Architectural Segment | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring costs, net | 2,394 | |||||||||||
Cumulative amount incurred to date | 3,707 | 3,707 | ||||||||||
Corporate and Other | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring costs, net | (1,517) | 113 | ||||||||||
Cumulative amount incurred to date | 11,267 | 11,267 | ||||||||||
2018 Plan | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring Reserve | 596 | 0 | 596 | 0 | ||||||||
Restructuring costs, net | 1,624 | |||||||||||
Cumulative amount incurred to date | 1,624 | 1,624 | ||||||||||
Payments for Restructuring | (1,028) | |||||||||||
2018 Plan | North American Residential Segment | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring costs, net | 275 | |||||||||||
Cumulative amount incurred to date | 275 | 275 | ||||||||||
2018 Plan | Europe Segment | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring costs, net | 1,349 | |||||||||||
Cumulative amount incurred to date | 1,349 | 1,349 | ||||||||||
2018 Plan | Architectural Segment | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Cumulative amount incurred to date | 0 | 0 | ||||||||||
2018 Plan | Corporate and Other | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Cumulative amount incurred to date | 0 | 0 | ||||||||||
2016 Plan | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring Reserve | 0 | 90 | 0 | 90 | 1,300 | 0 | ||||||
Restructuring costs, net | 2,394 | 1,313 | ||||||||||
Cumulative amount incurred to date | 3,707 | 3,707 | ||||||||||
Payments for Restructuring | (90) | (3,604) | (13) | |||||||||
2016 Plan | North American Residential Segment | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring costs, net | 0 | |||||||||||
Cumulative amount incurred to date | 0 | 0 | ||||||||||
2016 Plan | Europe Segment | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring costs, net | 0 | 1,313 | ||||||||||
Cumulative amount incurred to date | 0 | 0 | ||||||||||
2016 Plan | Architectural Segment | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring costs, net | 2,394 | |||||||||||
Cumulative amount incurred to date | 3,707 | 3,707 | ||||||||||
2016 Plan | Corporate and Other | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring costs, net | 0 | 0 | ||||||||||
Cumulative amount incurred to date | 0 | 0 | ||||||||||
2015 Plan | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring Reserve | 0 | 0 | 282 | 774 | ||||||||
Restructuring costs, net | (7) | 132 | ||||||||||
Cumulative amount incurred to date | 5,609 | 5,609 | ||||||||||
Payments for Restructuring | (275) | (624) | ||||||||||
2015 Plan | North American Residential Segment | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring costs, net | 19 | |||||||||||
Cumulative amount incurred to date | 0 | 0 | ||||||||||
2015 Plan | Europe Segment | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring costs, net | 0 | 0 | ||||||||||
Cumulative amount incurred to date | 2,335 | 2,335 | ||||||||||
2015 Plan | Architectural Segment | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring costs, net | 0 | |||||||||||
Cumulative amount incurred to date | 0 | 0 | ||||||||||
2015 Plan | Corporate and Other | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring costs, net | (7) | 113 | ||||||||||
Cumulative amount incurred to date | 3,274 | 3,274 | ||||||||||
2014 Plan | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring Reserve | 0 | 0 | 426 | 442 | ||||||||
Restructuring costs, net | (1,510) | |||||||||||
Cumulative amount incurred to date | 7,993 | 7,993 | ||||||||||
Payments for Restructuring | 1,084 | (16) | ||||||||||
2014 Plan | North American Residential Segment | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Cumulative amount incurred to date | 0 | 0 | ||||||||||
2014 Plan | Europe Segment | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring costs, net | 0 | |||||||||||
Cumulative amount incurred to date | 0 | 0 | ||||||||||
2014 Plan | Architectural Segment | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring costs, net | 0 | |||||||||||
Cumulative amount incurred to date | 0 | 0 | ||||||||||
2014 Plan | Corporate and Other | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring costs, net | (1,510) | |||||||||||
Cumulative amount incurred to date | 7,993 | 7,993 | ||||||||||
2012 and Prior Plans | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring Reserve | $ 58 | $ 194 | 58 | 194 | 465 | $ 1,174 | ||||||
Restructuring costs, net | (27) | |||||||||||
Payments for Restructuring | (136) | (244) | (709) | |||||||||
2012 and Prior Plans | Europe Segment | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring costs, net | (27) | |||||||||||
2012 and Prior Plans | Architectural Segment | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring costs, net | 0 | |||||||||||
2012 and Prior Plans | Corporate and Other | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring costs, net | 0 | |||||||||||
Severance | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring costs, net | 859 | 109 | 1,420 | |||||||||
Severance | 2018 Plan | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring costs, net | 859 | |||||||||||
Severance | 2016 Plan | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring costs, net | 0 | 116 | 1,313 | |||||||||
Severance | 2015 Plan | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring costs, net | (7) | 107 | ||||||||||
Severance | 2014 Plan | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring costs, net | 0 | 0 | ||||||||||
Severance | 2012 and Prior Plans | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring costs, net | 0 | 0 | 0 | |||||||||
Closure Costs | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring costs, net | 765 | 741 | 25 | |||||||||
Closure Costs | 2018 Plan | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring costs, net | 765 | |||||||||||
Closure Costs | 2016 Plan | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring costs, net | 0 | 2,278 | 0 | |||||||||
Closure Costs | 2015 Plan | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring costs, net | 0 | 25 | ||||||||||
Closure Costs | 2014 Plan | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring costs, net | (1,510) | 0 | ||||||||||
Closure Costs | 2012 and Prior Plans | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring costs, net | $ 0 | $ (27) | $ 0 |
Restructuring Costs (Narrative)
Restructuring Costs (Narrative) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2018USD ($) | Dec. 31, 2017USD ($) | Jan. 01, 2017USD ($)employee | |
Restructuring Cost and Reserve [Line Items] | |||
Payments for Restructuring | $ (1,254) | $ (3,039) | $ (1,362) |
2018 Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected cost remaining | 2,000 | ||
Payments for Restructuring | (1,028) | ||
2016 Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected number of positions to be eliminated | employee | 140 | ||
Payments for Restructuring | $ (90) | (3,604) | $ (13) |
2014 Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Payments for Restructuring | $ 1,084 | $ (16) |
Restructuring Costs (Details)
Restructuring Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 30, 2018 | Sep. 30, 2018 | Jul. 01, 2018 | Apr. 01, 2018 | Dec. 31, 2017 | Oct. 01, 2017 | Jul. 02, 2017 | Apr. 02, 2017 | Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Restructuring Reserve [Roll Forward] | |||||||||||
Restructuring reserve, beginning balance | $ 284 | $ 2,473 | $ 284 | $ 2,473 | $ 2,390 | ||||||
Restructuring Charges | $ 1,624 | $ 0 | $ 0 | 0 | $ (136) | $ 1,393 | $ (700) | 293 | 1,624 | 850 | 1,445 |
Payments for Restructuring | (1,254) | (3,039) | (1,362) | ||||||||
Restructuring reserve, ending balance | 654 | 284 | 654 | 284 | 2,473 | ||||||
Severance | |||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||
Restructuring Charges | 859 | 109 | 1,420 | ||||||||
Closure Costs | |||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||
Restructuring Charges | 765 | 741 | 25 | ||||||||
2018 Plan | |||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||
Restructuring reserve, beginning balance | 0 | 0 | |||||||||
Restructuring Charges | 1,624 | ||||||||||
Payments for Restructuring | (1,028) | ||||||||||
Restructuring reserve, ending balance | 596 | 0 | 596 | 0 | |||||||
2018 Plan | Severance | |||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||
Restructuring Charges | 859 | ||||||||||
2018 Plan | Closure Costs | |||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||
Restructuring Charges | 765 | ||||||||||
2016 Plan | |||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||
Restructuring reserve, beginning balance | 90 | 1,300 | 90 | 1,300 | 0 | ||||||
Restructuring Charges | 2,394 | 1,313 | |||||||||
Payments for Restructuring | (90) | (3,604) | (13) | ||||||||
Restructuring reserve, ending balance | 0 | 90 | 0 | 90 | 1,300 | ||||||
2016 Plan | Severance | |||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||
Restructuring Charges | 0 | 116 | 1,313 | ||||||||
2016 Plan | Closure Costs | |||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||
Restructuring Charges | 0 | 2,278 | 0 | ||||||||
2015 Plan | |||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||
Restructuring reserve, beginning balance | 0 | 282 | 0 | 282 | 774 | ||||||
Restructuring Charges | (7) | 132 | |||||||||
Payments for Restructuring | (275) | (624) | |||||||||
Restructuring reserve, ending balance | 0 | 0 | 282 | ||||||||
2015 Plan | Severance | |||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||
Restructuring Charges | (7) | 107 | |||||||||
2015 Plan | Closure Costs | |||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||
Restructuring Charges | 0 | 25 | |||||||||
2014 Plan | |||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||
Restructuring reserve, beginning balance | 0 | 426 | 0 | 426 | 442 | ||||||
Restructuring Charges | (1,510) | ||||||||||
Payments for Restructuring | 1,084 | (16) | |||||||||
Restructuring reserve, ending balance | 0 | 0 | 426 | ||||||||
2014 Plan | Severance | |||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||
Restructuring Charges | 0 | 0 | |||||||||
2014 Plan | Closure Costs | |||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||
Restructuring Charges | (1,510) | 0 | |||||||||
2012 and Prior Plans | |||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||
Restructuring reserve, beginning balance | $ 194 | $ 465 | 194 | 465 | 1,174 | ||||||
Restructuring Charges | (27) | ||||||||||
Payments for Restructuring | (136) | (244) | (709) | ||||||||
Restructuring reserve, ending balance | $ 58 | $ 194 | 58 | 194 | 465 | ||||||
2012 and Prior Plans | Severance | |||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||
Restructuring Charges | 0 | 0 | 0 | ||||||||
2012 and Prior Plans | Closure Costs | |||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||
Restructuring Charges | $ 0 | $ (27) | $ 0 |
Asset Impairment (Details)
Asset Impairment (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2017 | Oct. 01, 2017 | Jul. 02, 2017 | Apr. 02, 2017 | Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Asset impairment | $ 5,243 | $ 0 | $ 0 | $ 0 | $ 5,243 | $ 0 | $ 1,511 |
Europe Segment | Asset Group Three | Fair Value, Inputs, Level 3 | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Fair value of asset group based on estimated discounted future cash flows, including salvage values or market values | 3,200 | ||||||
Architectural Segment | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Asset impairment | 1,500 | ||||||
Architectural Segment | Asset Group Three | Fair Value, Inputs, Level 3 | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Fair value of asset group based on estimated discounted future cash flows, including salvage values or market values | 600 | ||||||
Carrying Value | Europe Segment | Asset Group Three | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Book value of asset group | $ 8,400 | ||||||
Carrying Value | Architectural Segment | Asset Group Three | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Book value of asset group | $ 2,100 |
Income Taxes (Income From Conti
Income Taxes (Income From Continuing Operations Before Tax) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 30, 2018 | Sep. 30, 2018 | Jul. 01, 2018 | Apr. 01, 2018 | Dec. 31, 2017 | Oct. 01, 2017 | Jul. 02, 2017 | Apr. 02, 2017 | Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Income Tax Disclosure [Abstract] | |||||||||||
Canada | $ 19,552 | $ 25,617 | $ 25,982 | ||||||||
Foreign | 100,805 | 103,804 | 99,947 | ||||||||
Income before income tax expense | $ 16,590 | $ 31,695 | $ 43,588 | $ 28,484 | $ 32,407 | $ 36,629 | $ 36,986 | $ 23,399 | $ 120,357 | $ 129,421 | $ 125,929 |
Income Taxes (Income Tax Expens
Income Taxes (Income Tax Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 30, 2018 | Sep. 30, 2018 | Jul. 01, 2018 | Apr. 01, 2018 | Dec. 31, 2017 | Oct. 01, 2017 | Jul. 02, 2017 | Apr. 02, 2017 | Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Current income tax expense (benefit): | |||||||||||
Canada | $ 7,997 | $ 7,293 | $ 6,740 | ||||||||
Foreign | 5,253 | (623) | 2,129 | ||||||||
Total current income tax expense (benefit) | 13,250 | 6,670 | 8,869 | ||||||||
Deferred income tax expense (benefit): | |||||||||||
Canada | 122 | (22,287) | 3,045 | ||||||||
Foreign | 10,441 | (11,943) | 9,873 | ||||||||
Total deferred income tax expense (benefit) | 10,563 | (34,230) | 12,918 | ||||||||
Income tax expense (benefit) | $ 3,067 | $ 6,151 | $ 7,894 | $ 6,701 | $ (40,802) | $ 5,989 | $ 8,932 | $ (1,679) | $ 23,813 | (27,560) | $ 21,787 |
Net income tax benefit associated with revaluation of deferred tax items | $ 27,200 |
Income Taxes (Income Tax Rate R
Income Taxes (Income Tax Rate Reconciliation) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 30, 2018 | Sep. 30, 2018 | Jul. 01, 2018 | Apr. 01, 2018 | Dec. 31, 2017 | Oct. 01, 2017 | Jul. 02, 2017 | Apr. 02, 2017 | Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | ||||||||||||
Canadian federal statutory rate, (percent) | 26.50% | 26.50% | 26.60% | |||||||||
Income tax expense (benefit) computed at statutory income tax rate | $ 31,895 | $ 34,477 | $ 33,710 | |||||||||
Foreign rate differential | (4,926) | 2,772 | 6,125 | |||||||||
Permanent differences | (1,822) | 1,527 | 1,159 | |||||||||
Deconsolidation and disposition | (21) | (160) | (2,027) | |||||||||
Income attributable to a permanent establishment | 1,873 | 347 | 637 | |||||||||
Change in valuation allowance | 3,878 | (27,603) | (586) | |||||||||
Tax exempt income | (5,673) | (6,469) | (9,411) | |||||||||
Share based compensation | (737) | (7,583) | (6,080) | |||||||||
Income tax credits | (3,252) | (1,833) | (2,389) | |||||||||
Foreign exchange gains (losses) | (2,683) | 770 | (277) | |||||||||
Unrecognized tax benefits | 646 | (116) | 2,232 | |||||||||
Change in tax rate | (284) | 1,209 | (1,130) | |||||||||
Change in tax rate due to U.S. reform | 0 | (27,138) | 0 | |||||||||
Impact of Canadian tax legislation | 2,038 | 0 | 0 | |||||||||
Withholding and other taxes | 3,631 | 1,943 | 0 | |||||||||
Other | (750) | 297 | (176) | |||||||||
Income tax expense (benefit) | $ 3,067 | $ 6,151 | $ 7,894 | $ 6,701 | $ (40,802) | $ 5,989 | $ 8,932 | $ (1,679) | 23,813 | (27,560) | 21,787 | |
Deferred tax asset, valuation allowance | $ 16,373 | $ 13,912 | $ 16,373 | $ 13,912 | $ 36,800 | $ 40,857 |
Income Taxes (Deferred Income T
Income Taxes (Deferred Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Deferred Tax Assets, Gross [Abstract] | ||||
Non-capital loss carryforwards | $ 24,536 | $ 34,605 | ||
Capital loss carryforwards | 12,674 | 13,498 | ||
Deferred interest expense | 8,990 | 8,671 | ||
Pension and post-retirement liability | 3,410 | 4,493 | ||
Amounts currently not deductible for tax purposes | 16,683 | 14,954 | ||
Share based compensation | 3,314 | 6,137 | ||
Income tax credits | 5,694 | 3,713 | ||
Effective Income Tax Rate Reconciliation, Tax Credit, Amount | 3,252 | 1,833 | $ 2,389 | |
Other | 2,114 | 3,875 | ||
Total deferred income tax assets | 77,415 | 89,946 | ||
Valuation allowance | (16,373) | (13,912) | $ (36,800) | $ (40,857) |
Total deferred income tax assets, net of valuation allowance | 61,042 | 76,034 | ||
Deferred income tax liabilities: | ||||
Plant and equipment | (64,831) | (60,571) | ||
Intangibles | (35,740) | (30,578) | ||
Basis difference in subsidiaries | (7,070) | (6,558) | ||
Unrealized foreign exchange loss (gain) | (5,102) | (6,753) | ||
Other | (1,912) | (2,495) | ||
Total deferred income tax liabilities | (114,655) | (106,955) | ||
Net deferred tax liability | $ 53,613 | $ 30,921 |
Income Taxes (Valuation Allowan
Income Taxes (Valuation Allowance Rollforward) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at the beginning of period | $ 13,912 | $ 36,800 | $ 40,857 |
Additions charged to expense and other | 12,590 | 5,566 | 2,433 |
Deductions | (10,129) | (28,454) | (6,490) |
Balance at the end of period | $ 16,373 | $ 13,912 | $ 36,800 |
Income Taxes (Loss Carryforward
Income Taxes (Loss Carryforwards) (Details) $ in Thousands | Dec. 30, 2018USD ($) |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | $ 93,802 |
CANADA | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 32,472 |
Operating loss carryforwards, valuation allowance | 3,700 |
UNITED STATES | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 16,972 |
Other Foreign | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 44,358 |
2019-2026 | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 5,230 |
2019-2026 | CANADA | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 0 |
2019-2026 | UNITED STATES | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 0 |
2019-2026 | Other Foreign | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 5,230 |
2027-2046 | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 49,444 |
2027-2046 | CANADA | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 32,472 |
2027-2046 | UNITED STATES | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 16,972 |
2027-2046 | Other Foreign | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 0 |
Indefinitely | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 39,128 |
Indefinitely | CANADA | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 0 |
Indefinitely | UNITED STATES | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 0 |
Indefinitely | Other Foreign | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | $ 39,128 |
Income Taxes (Unrecognized Tax
Income Taxes (Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized tax benefits at end of period | $ 9,084 | $ 8,560 | $ 9,004 |
Unrecognized tax benefits that would impact effective tax rate | 6,700 | 5,900 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits at beginning of period | 8,560 | 9,004 | 3,382 |
Gross increases in tax positions in current period | 508 | 1,208 | 5,950 |
Gross decreases in tax positions in prior period | (244) | (464) | (335) |
Gross increases in tax positions in prior period | 274 | 1,336 | 271 |
Lapse of statute of limitations | (14) | (17) | (264) |
Decrease due to change in tax rate | 0 | (2,507) | 0 |
Unrecognized tax benefits at end of period | 9,084 | 8,560 | 9,004 |
Unrecognized tax benefits, interest expense | 500 | 400 | 500 |
Unrecognized tax benefits, penalties accrued | 400 | 400 | 500 |
Unrecognized tax benefits, interest accrued | $ 3,300 | $ 3,200 | $ 5,500 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 30, 2018 | Sep. 30, 2018 | Jul. 01, 2018 | Apr. 01, 2018 | Dec. 31, 2017 | Oct. 01, 2017 | Jul. 02, 2017 | Apr. 02, 2017 | Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Net income attributable to Masonite | $ 12,347 | $ 24,796 | $ 34,741 | $ 20,826 | $ 71,812 | $ 29,478 | $ 26,884 | $ 23,565 | $ 92,710 | $ 151,739 | $ 98,622 |
Effect of dilutive securities: | |||||||||||
Shares used in computing basic earnings per share | 27,412,268 | 29,298,236 | 30,359,193 | ||||||||
Incremental shares issuable under share compensation plans | 452,960 | 516,423 | 741,883 | ||||||||
Shares used in computing diluted earnings per share | 27,865,228 | 29,814,659 | 31,101,076 | ||||||||
Basic earnings per common share attributable to Masonite (in USD per share) | $ 3.38 | $ 5.18 | $ 3.25 | ||||||||
Diluted earnings per common share attributable to Masonite (in USD per share) | $ 3.33 | $ 5.09 | $ 3.17 | ||||||||
Stock appreciation rights | |||||||||||
Anti-dilutive instruments excluded from diluted earnings per common share: | |||||||||||
Antidilutive securities excluded from computation of earnings per share, amount | 120,881 | 51,129 | 0 |
Segment Information (Schedule o
Segment Information (Schedule of Segment Reporting Information, by Segment) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 30, 2018 | Sep. 30, 2018 | Jul. 01, 2018 | Apr. 01, 2018 | Dec. 31, 2017 | Oct. 01, 2017 | Jul. 02, 2017 | Apr. 02, 2017 | Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | $ 528,350 | $ 557,148 | $ 566,726 | $ 517,879 | $ 508,500 | $ 517,503 | $ 519,741 | $ 487,181 | $ 2,170,103 | $ 2,032,925 | $ 1,973,964 |
Adjusted EBITDA | 267,936 | 254,506 | 252,013 | ||||||||
Depreciation and Amortization | 87,672 | 81,903 | 82,331 | ||||||||
Interest expense, net | 11,027 | 10,151 | 9,074 | 8,756 | 8,804 | 7,213 | 7,112 | 7,024 | 39,008 | 30,153 | 28,178 |
Income tax expense (benefit) | $ 3,067 | $ 6,151 | $ 7,894 | $ 6,701 | $ (40,802) | $ 5,989 | $ 8,932 | $ (1,679) | 23,813 | (27,560) | 21,787 |
Operating Segments | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | 2,193,504 | 2,059,972 | 1,998,786 | ||||||||
Intersegment Eliminations | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | (23,401) | (27,047) | (24,822) | ||||||||
North American Residential Segment | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | 1,454,759 | 1,428,930 | 1,351,302 | ||||||||
Adjusted EBITDA | 202,465 | 200,179 | 212,619 | ||||||||
Depreciation and Amortization | 31,425 | 33,167 | 35,542 | ||||||||
Interest expense, net | 0 | 0 | 0 | ||||||||
Income tax expense (benefit) | 0 | 0 | 0 | ||||||||
North American Residential Segment | Operating Segments | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | 1,458,957 | 1,433,268 | 1,357,228 | ||||||||
North American Residential Segment | Intersegment Eliminations | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | (4,198) | (4,338) | (5,926) | ||||||||
Europe Segment | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | 369,003 | 291,926 | 301,167 | ||||||||
Adjusted EBITDA | 44,985 | 33,820 | 39,028 | ||||||||
Depreciation and Amortization | 24,638 | 17,455 | 17,549 | ||||||||
Interest expense, net | 0 | 0 | 0 | ||||||||
Income tax expense (benefit) | 0 | 0 | 0 | ||||||||
Europe Segment | Operating Segments | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | 371,069 | 295,862 | 305,710 | ||||||||
Europe Segment | Intersegment Eliminations | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | (2,066) | (3,936) | (4,543) | ||||||||
Architectural Segment | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | 323,472 | 288,464 | 297,888 | ||||||||
Adjusted EBITDA | 37,742 | 30,050 | 25,160 | ||||||||
Depreciation and Amortization | 19,667 | 17,774 | 17,621 | ||||||||
Interest expense, net | 0 | 0 | 0 | ||||||||
Income tax expense (benefit) | 0 | 0 | 0 | ||||||||
Architectural Segment | Operating Segments | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | 340,609 | 307,237 | 312,241 | ||||||||
Architectural Segment | Intersegment Eliminations | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | (17,137) | (18,773) | (14,353) | ||||||||
Corporate and Other | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | 22,869 | 23,605 | 23,607 | ||||||||
Adjusted EBITDA | (17,256) | (9,543) | (24,794) | ||||||||
Depreciation and Amortization | 11,942 | 13,507 | 11,619 | ||||||||
Interest expense, net | 39,008 | 30,153 | 28,178 | ||||||||
Income tax expense (benefit) | 23,813 | (27,560) | 21,787 | ||||||||
Corporate and Other | Operating Segments | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | 22,869 | 23,605 | 23,607 | ||||||||
Corporate and Other | Intersegment Eliminations | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | $ 0 | $ 0 | $ 0 |
Segment Information (Reconcilia
Segment Information (Reconciliation of Consolidated Adjusted EBITDA to Net Income (Loss)) (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2016 | Dec. 30, 2018 | Sep. 30, 2018 | Jul. 01, 2018 | Apr. 01, 2018 | Dec. 31, 2017 | Oct. 01, 2017 | Jul. 02, 2017 | Apr. 02, 2017 | Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Segment Reporting [Abstract] | ||||||||||||
Adjusted EBITDA | $ 267,936 | $ 254,506 | $ 252,013 | |||||||||
Depreciation | 59,089 | 57,528 | 57,604 | |||||||||
Amortization | 28,583 | 24,375 | 24,727 | |||||||||
Share based compensation expense | 7,681 | 11,644 | 18,790 | |||||||||
Loss (gain) on disposal of property, plant and equipment | 3,470 | 1,893 | 2,111 | |||||||||
Restructuring costs, net | $ 1,624 | $ 0 | $ 0 | $ 0 | $ (136) | $ 1,393 | $ (700) | $ 293 | 1,624 | 850 | 1,445 | |
Asset impairment | 5,243 | 0 | 0 | 0 | 5,243 | 0 | 1,511 | |||||
Loss (gain) on disposal of subsidiaries | $ 5,100 | 0 | 0 | 212 | 0 | 0 | 212 | (6,575) | ||||
Interest expense, net | 11,027 | 10,151 | 9,074 | 8,756 | 8,804 | 7,213 | 7,112 | 7,024 | 39,008 | 30,153 | 28,178 | |
Loss on extinguishment of debt | 0 | (5,414) | 0 | 0 | 5,414 | 0 | 0 | |||||
Other income, net of expense | (724) | (948) | (839) | (22) | (835) | (312) | (154) | (269) | (2,533) | (1,570) | (1,707) | |
Income tax expense (benefit) | 3,067 | 6,151 | 7,894 | 6,701 | (40,802) | 5,989 | 8,932 | (1,679) | 23,813 | (27,560) | 21,787 | |
Net income (loss) attributable to non-controlling interest | 1,176 | 748 | 953 | 957 | 1,397 | 1,162 | 1,170 | 1,513 | 3,834 | 5,242 | 5,520 | |
Net income attributable to Masonite | $ 12,347 | $ 24,796 | $ 34,741 | $ 20,826 | $ 71,812 | $ 29,478 | $ 26,884 | $ 23,565 | $ 92,710 | $ 151,739 | $ 98,622 |
Segment Information (Net Sales)
Segment Information (Net Sales) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 30, 2018 | Sep. 30, 2018 | Jul. 01, 2018 | Apr. 01, 2018 | Dec. 31, 2017 | Oct. 01, 2017 | Jul. 02, 2017 | Apr. 02, 2017 | Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 528,350 | $ 557,148 | $ 566,726 | $ 517,879 | $ 508,500 | $ 517,503 | $ 519,741 | $ 487,181 | $ 2,170,103 | $ 2,032,925 | $ 1,973,964 |
The Home Depot, Inc. | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 385,300 | 356,500 | 316,200 | ||||||||
UNITED STATES | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 1,388,680 | 1,333,223 | 1,284,982 | ||||||||
CANADA | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 329,292 | 327,644 | 306,130 | ||||||||
UNITED KINGDOM | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 328,669 | 253,564 | 262,854 | ||||||||
Other Countries | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 123,462 | 118,494 | 119,998 | ||||||||
Interior Products | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 1,560,949 | 1,407,041 | 1,378,959 | ||||||||
Exterior Products | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 508,449 | 526,487 | 496,617 | ||||||||
Components | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 100,705 | $ 99,397 | $ 98,388 |
Segment Information (Property,
Segment Information (Property, Plant and Equipment) (Details) - USD ($) $ in Thousands | Dec. 30, 2018 | Dec. 31, 2017 |
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | $ 609,753 | $ 575,492 |
UNITED STATES | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | 412,072 | 369,630 |
CANADA | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | 62,626 | 67,358 |
Other Countries | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | $ 135,055 | $ 138,504 |
Segment Information (Additional
Segment Information (Additional Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Adjusted EBITDA | $ 267,936 | $ 254,506 | $ 252,013 |
Europe Segment | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Adjusted EBITDA | 44,985 | 33,820 | 39,028 |
Corporate and Other | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Adjusted EBITDA | $ (17,256) | (9,543) | (24,794) |
Accounting Standards Update 2017-07 | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Adjusted EBITDA | 1,100 | 500 | |
Accounting Standards Update 2017-07 | Europe Segment | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Adjusted EBITDA | 300 | 200 | |
Accounting Standards Update 2017-07 | Corporate and Other | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Adjusted EBITDA | $ 1,300 | $ 700 |
Employee Future Benefits (Infor
Employee Future Benefits (Information about the Plans) (Details) - Pension Plan - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
UNITED KINGDOM | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Interest cost | $ 648 | $ 685 | $ 873 |
Expected return on assets | (990) | (429) | (640) |
Amortization of actuarial net losses | 142 | 0 | 0 |
Net pension expense | (200) | 256 | 233 |
UNITED STATES | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Service cost | 670 | 811 | 286 |
Interest cost | 3,322 | 3,421 | 3,570 |
Expected return on assets | (6,253) | (5,852) | (5,373) |
Amortization of actuarial net losses | 1,149 | 1,113 | 1,070 |
Net pension expense | $ (1,112) | $ (507) | $ (447) |
Employee Future Benefits (Plan
Employee Future Benefits (Plan Activity) (Details) - Pension Plan - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
UNITED KINGDOM | |||
Pension assets: | |||
Fair value of plan assets, beginning of year | $ 25,141 | $ 21,011 | |
Company contributions | 661 | 1,002 | |
Actual return on plan assets | (1,106) | 1,867 | |
Benefits paid | (886) | (800) | |
Translation adjustment | (1,503) | 2,061 | |
Fair value of plan assets, end of year | 22,307 | 25,141 | $ 21,011 |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Accrued benefit obligation, beginning of year | 30,812 | 29,095 | |
Interest cost | 648 | 685 | 873 |
Actuarial loss (gain) | (962) | (833) | |
Benefits paid | (886) | (800) | |
Plan amendment | 585 | 0 | |
Translation adjustment | (1,894) | 2,665 | |
Accrued benefit obligation, end of year | 28,303 | 30,812 | 29,095 |
Net accrued benefit obligation, end of year | 5,996 | 5,671 | |
UNITED STATES | |||
Pension assets: | |||
Fair value of plan assets, beginning of year | 92,716 | 83,550 | |
Company contributions | 5,000 | 5,000 | |
Actual return on plan assets | (4,453) | 10,704 | |
Benefits paid | (5,730) | (5,915) | |
Administration expenses paid | (541) | (623) | |
Fair value of plan assets, end of year | 86,992 | 92,716 | 83,550 |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Accrued benefit obligation, beginning of year | 104,909 | 100,887 | |
Current service cost | 670 | 811 | 286 |
Interest cost | 3,322 | 3,421 | 3,570 |
Actuarial loss (gain) | (7,459) | 6,328 | |
Benefits paid | (5,730) | (5,915) | |
Administration expenses paid | (541) | (623) | |
Accrued benefit obligation, end of year | 95,171 | 104,909 | $ 100,887 |
Net accrued benefit obligation, end of year | $ 8,179 | $ 12,193 |
Employee Future Benefits (Alloc
Employee Future Benefits (Allocation of Plan Assets) (Details) - Pension Plan - USD ($) $ in Thousands | Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 |
UNITED KINGDOM | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Allocation of plan assets | $ 22,307 | $ 25,141 | $ 21,011 |
Allocation of plan assets, percent | 100.00% | 100.00% | |
UNITED KINGDOM | Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Allocation of plan assets | $ 10,207 | $ 11,855 | |
Allocation of plan assets, percent | 45.80% | 47.20% | |
Target plan asset allocations, percent | 50.00% | ||
UNITED KINGDOM | Debt Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Allocation of plan assets | $ 11,909 | $ 12,949 | |
Allocation of plan assets, percent | 53.30% | 51.50% | |
Target plan asset allocations, percent | 50.00% | ||
UNITED KINGDOM | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Allocation of plan assets | $ 191 | $ 337 | |
Allocation of plan assets, percent | 0.90% | 1.30% | |
UNITED STATES | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Allocation of plan assets | $ 86,992 | $ 92,716 | $ 83,550 |
Allocation of plan assets, percent | 100.00% | 100.00% | |
UNITED STATES | Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Allocation of plan assets | $ 51,412 | $ 54,517 | |
Allocation of plan assets, percent | 59.10% | 58.80% | |
Target plan asset allocations, percent | 60.00% | ||
UNITED STATES | Debt Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Allocation of plan assets | $ 32,361 | $ 33,470 | |
Allocation of plan assets, percent | 37.20% | 36.10% | |
Target plan asset allocations, percent | 38.00% | ||
UNITED STATES | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Allocation of plan assets | $ 3,219 | $ 4,729 | |
Allocation of plan assets, percent | 3.70% | 5.10% | |
Target plan asset allocations, percent | 2.00% |
Employee Future Benefits (Actua
Employee Future Benefits (Actuarial Assumptions) (Details) - Pension Plan | 12 Months Ended | ||
Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
UNITED KINGDOM | |||
Discount rate applied for: | |||
Accrued benefit obligation | 2.70% | 2.40% | 2.60% |
Net periodic pension cost | 2.40% | 2.20% | 2.30% |
Expected long-term rate of return on plan assets | 4.20% | 4.00% | 3.90% |
Expected long-term return on assets, (in Years) | 10 years | ||
UNITED STATES | |||
Discount rate applied for: | |||
Accrued benefit obligation | 4.30% | 3.60% | 4.20% |
Net periodic pension cost | 3.60% | 4.20% | 4.50% |
Expected long-term rate of return on plan assets | 6.80% | 7.00% | 7.00% |
Expected long-term return on assets, (in Years) | 30 years |
Employee Future Benefits (Overa
Employee Future Benefits (Overall Pension Obligation) (Details) $ in Thousands | Dec. 30, 2018USD ($) |
Retirement Benefits [Abstract] | |
Estimated actuarial net losses that will be amortized from AOCI in 2018 | $ 1,900 |
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | |
2,019 | 6,924 |
2,020 | 7,188 |
2,021 | 7,435 |
2,022 | 7,526 |
2,023 | 7,593 |
2024 through 2028 | 38,486 |
Expected future benefit payments | 75,152 |
Expected contributions to the plans in the next fiscal year | $ 6,000 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income and Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Accumulated Foreign Exchange Gains (Losses) [Roll Forward] | |||
Accumulated foreign exchange losses, beginning of period | $ (89,824) | $ (127,433) | $ (90,111) |
Foreign exchange gain (loss) | (40,880) | 38,758 | (35,666) |
Income tax expense on foreign exchange losses | (60) | (609) | 0 |
Cumulative translation adjustment recognized upon deconsolidation of subsidiaries | 0 | 212 | (1,431) |
Less: foreign exchange gain (loss) attributable to non-controlling interest | (834) | 752 | 225 |
Accumulated foreign exchange losses, end of period | (129,930) | (89,824) | (127,433) |
Accumulated Amortization of Actuarial Net Losses [Roll Forward] | |||
Accumulated pension and other post-retirement adjustments | (20,328) | (21,553) | (17,837) |
Pension and other post-retirement adjustments | 4,754 | (529) | 5,941 |
Income tax benefit (expense) on pension and other post-retirement adjustments | 1,113 | 39 | 1,578 |
Amortization of actuarial net losses | 1,291 | 1,113 | 1,070 |
Income tax benefit (expense) on amortization of actuarial net losses | (311) | (456) | (423) |
Accumulated pension and other post-retirement adjustments | (22,989) | (20,328) | (21,553) |
Accumulated other comprehensive loss | (152,919) | (110,152) | (148,986) |
Other comprehensive income (loss), net of tax: | (43,601) | 39,586 | (40,813) |
Less: other comprehensive income (loss) attributable to non-controlling interest | (834) | 752 | 225 |
Other comprehensive income (loss) attributable to Masonite | $ (42,767) | $ 38,834 | $ (41,038) |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Transactions involving cash: | |||
Interest paid | $ 35,877 | $ 27,396 | $ 26,862 |
Interest received | 1,304 | 381 | 279 |
Income taxes paid | 10,858 | 10,169 | 9,475 |
Income tax refunds | $ 124 | $ 68 | $ 1,469 |
Supplemental Cash Flow Inform_4
Supplemental Cash Flow Information Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 30, 2018 | Dec. 31, 2017 | |
Supplemental Cash Flow Elements [Abstract] | ||
Property, plant and equipment additions in accounts payable | $ 8.7 | $ 8.4 |
Supplemental Cash Flow Inform_5
Supplemental Cash Flow Information Cash, cash equivalents and restricted cash (Details) - USD ($) $ in Thousands | Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 |
Supplemental Cash Flow Elements [Abstract] | ||||
Cash and cash equivalents | $ 115,656 | $ 176,669 | ||
Restricted cash | 10,485 | 11,895 | ||
Total cash, cash equivalents and restricted cash | $ 126,141 | $ 188,564 | $ 83,910 | $ 101,832 |
Variable Interest Entity (Detai
Variable Interest Entity (Details) - USD ($) $ in Thousands | Dec. 30, 2018 | Dec. 31, 2017 |
Variable Interest Entity [Line Items] | ||
Current assets | $ 696,593 | $ 721,870 |
Property, plant and equipment, net | 609,753 | 575,492 |
Long-term deferred income taxes | 28,509 | 29,899 |
Other assets | 37,794 | 20,754 |
Current liabilities | (245,306) | (222,125) |
Other long-term liabilities | (32,334) | (35,754) |
Net assets of the VIE consolidated by Masonite | 610,440 | 722,629 |
Variable Interest Entity, Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Current assets | 9,632 | 7,213 |
Property, plant and equipment, net | 9,327 | 11,344 |
Long-term deferred income taxes | 4,306 | 5,472 |
Other assets | 3,122 | 3,386 |
Current liabilities | (2,653) | (2,326) |
Other long-term liabilities | (859) | (1,699) |
Non-controlling interest | (3,835) | (4,029) |
Net assets of the VIE consolidated by Masonite | $ 19,040 | $ 19,361 |
Variable Interest Entity (Narra
Variable Interest Entity (Narrative) (Details) $ in Thousands | Dec. 30, 2018USD ($) | Dec. 31, 2017USD ($) |
Variable Interest Entity [Line Items] | ||
Cash and cash equivalents | $ 115,656 | $ 176,669 |
Variable Interest Entity, Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Number of variable interest entities | 1 | 1 |
Cash and cash equivalents | $ 5,700 | $ 3,200 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Details) - Senior Notes - Fair Value, Inputs, Level 2 - USD ($) $ in Millions | Dec. 30, 2018 | Dec. 31, 2017 |
Senior Notes Due 2026 | Estimate of Fair Value Measurement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Estimated fair value of senior notes | $ 282.6 | |
Senior Notes Due 2026 | Reported Value Measurement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Estimated fair value of senior notes | 295.8 | |
Senior Notes Due 2023 | Estimate of Fair Value Measurement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Estimated fair value of senior notes | 484.9 | $ 653.6 |
Senior Notes Due 2023 | Reported Value Measurement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Estimated fair value of senior notes | $ 499.5 | $ 624.1 |
Subsequent Events - 2019 Restru
Subsequent Events - 2019 Restructuring Plan (Details) - North American Residential Segment - Twenty Nineteen Restructuring Plans - Subsequent Event $ in Millions | Feb. 26, 2019USD ($) |
Minimum | |
Subsequent Event [Line Items] | |
Expected restructuring cost | $ 10 |
Maximum | |
Subsequent Event [Line Items] | |
Expected restructuring cost | $ 15 |
Subsequent Events - ABL Facilit
Subsequent Events - ABL Facility 2024 (Details) - Revolving Credit Facility - ABL Facility 2024 - Subsequent Event - USD ($) | Jan. 31, 2019 | Feb. 26, 2019 |
Subsequent Event [Line Items] | ||
Maximum borrowing capacity | $ 250,000,000 | |
Maximum pro forma secured leverage ratio | 4.5 | |
Line of credit, amount outstanding | $ 0 | |
Minimum | ||
Subsequent Event [Line Items] | ||
Unutilized commitment fee percentage | 0.25% | |
Minimum | Base Rate | ||
Subsequent Event [Line Items] | ||
Basis spread on variable rate | 0.25% | |
Minimum | Eurodollar Rate | ||
Subsequent Event [Line Items] | ||
Basis spread on variable rate | 1.25% | |
Maximum | Base Rate | ||
Subsequent Event [Line Items] | ||
Basis spread on variable rate | 0.50% | |
Maximum | Eurodollar Rate | ||
Subsequent Event [Line Items] | ||
Basis spread on variable rate | 1.50% |
Supplemental Unaudited Quarte_3
Supplemental Unaudited Quarterly FInancial Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2016 | Dec. 30, 2018 | Sep. 30, 2018 | Jul. 01, 2018 | Apr. 01, 2018 | Dec. 31, 2017 | Oct. 01, 2017 | Jul. 02, 2017 | Apr. 02, 2017 | Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||
Net sales | $ 528,350 | $ 557,148 | $ 566,726 | $ 517,879 | $ 508,500 | $ 517,503 | $ 519,741 | $ 487,181 | $ 2,170,103 | $ 2,032,925 | $ 1,973,964 | |
Cost of goods sold | 432,989 | 446,306 | 443,052 | 412,450 | 408,386 | 413,517 | 412,415 | 391,624 | 1,734,797 | 1,625,942 | 1,564,319 | |
Gross profit | 95,361 | 110,842 | 123,674 | 105,429 | 100,114 | 103,986 | 107,326 | 95,557 | 435,306 | 406,983 | 409,645 | |
Selling, general and administration expenses | 61,601 | 64,530 | 71,851 | 68,211 | 59,874 | 59,063 | 63,870 | 65,110 | 266,193 | 247,917 | 260,864 | |
Restructuring costs, net | 1,624 | 0 | 0 | 0 | (136) | 1,393 | (700) | 293 | 1,624 | 850 | 1,445 | |
Asset impairment | 5,243 | 0 | 0 | 0 | 5,243 | 0 | 1,511 | |||||
Loss (gain) on disposal of subsidiaries | $ 5,100 | 0 | 0 | 212 | 0 | 0 | 212 | (6,575) | ||||
Operating income (loss) | 26,893 | 46,312 | 51,823 | 37,218 | 40,376 | 43,530 | 43,944 | 30,154 | 162,246 | 158,004 | 152,400 | |
Interest expense, net | 11,027 | 10,151 | 9,074 | 8,756 | 8,804 | 7,213 | 7,112 | 7,024 | 39,008 | 30,153 | 28,178 | |
Loss on extinguishment of debt | 0 | (5,414) | 0 | 0 | 5,414 | 0 | 0 | |||||
Other income, net of expense | (724) | (948) | (839) | (22) | (835) | (312) | (154) | (269) | (2,533) | (1,570) | (1,707) | |
Income before income tax expense | 16,590 | 31,695 | 43,588 | 28,484 | 32,407 | 36,629 | 36,986 | 23,399 | 120,357 | 129,421 | 125,929 | |
Income tax expense (benefit) | 3,067 | 6,151 | 7,894 | 6,701 | (40,802) | 5,989 | 8,932 | (1,679) | 23,813 | (27,560) | 21,787 | |
Net income | 13,523 | 25,544 | 35,694 | 21,783 | 73,209 | 30,640 | 28,054 | 25,078 | 96,544 | 156,981 | 104,142 | |
Less: net income attributable to non-controlling interest | 1,176 | 748 | 953 | 957 | 1,397 | 1,162 | 1,170 | 1,513 | 3,834 | 5,242 | 5,520 | |
Net income attributable to Masonite | $ 12,347 | $ 24,796 | $ 34,741 | $ 20,826 | $ 71,812 | $ 29,478 | $ 26,884 | $ 23,565 | $ 92,710 | $ 151,739 | $ 98,622 | |
Earnings Per Share, Basic and Diluted [Abstract] | ||||||||||||
Basic earnings per common share attributable to Masonite (in dollars per share) | $ 0.47 | $ 0.90 | $ 1.26 | $ 0.74 | $ 2.52 | $ 1.01 | $ 0.90 | $ 0.79 | $ 3.38 | $ 5.18 | $ 3.25 | |
Diluted earnings per common share attributable to Masonite (in dollars per share) | $ 0.46 | $ 0.89 | $ 1.24 | $ 0.73 | $ 2.48 | $ 1 | $ 0.89 | $ 0.77 | $ 3.33 | $ 5.09 | $ 3.17 |