Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 29, 2019 | Oct. 30, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 29, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-11796 | |
Entity Registrant Name | Masonite International Corporation | |
Entity Tax Identification Number | 98-0377314 | |
Entity Address, Address Line One | 2771 Rutherford Road | |
Entity Address, City or Town | Concord | |
Entity Address, State or Province | ON | |
Entity Address, Postal Zip Code | L4K 2N6 | |
Entity Address, Country | CA | |
City Area Code | 800 | |
Local Phone Number | 895-2723 | |
Title of 12(b) Security | Common Stock (no par value) | |
Trading Symbol | DOOR | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 24,882,576 | |
Entity Central Index Key | 0000893691 | |
Current Fiscal Year End Date | --12-29 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Incorporation, State or Country Code | A1 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net sales | $ 552,192 | $ 557,148 | $ 1,645,446 | $ 1,641,753 |
Cost of goods sold | 426,588 | 446,306 | 1,278,808 | 1,301,808 |
Gross profit | 125,604 | 110,842 | 366,638 | 339,945 |
Selling, general and administration expenses | 77,573 | 64,530 | 233,815 | 204,592 |
Restructuring costs | 1,994 | 0 | 7,095 | 0 |
Asset impairment | 0 | 0 | 13,767 | 0 |
Loss on disposal of subsidiaries | 0 | 0 | 4,605 | 0 |
Operating income | 46,037 | 46,312 | 107,356 | 135,353 |
Interest expense, net | 11,909 | 10,151 | 34,393 | 27,981 |
Loss on extinguishment of debt | 14,523 | 5,414 | 14,523 | 5,414 |
Other income, net of expense | (824) | (948) | (2,410) | (1,809) |
Income before income tax expense | 20,429 | 31,695 | 60,850 | 103,767 |
Income tax expense | 4,334 | 6,151 | 14,685 | 20,746 |
Net income | 16,095 | 25,544 | 46,165 | 83,021 |
Less: net income attributable to non-controlling interests | 1,126 | 748 | 3,165 | 2,658 |
Net income attributable to Masonite | $ 14,969 | $ 24,796 | $ 43,000 | $ 80,363 |
Basic earnings per common share attributable to Masonite (in dollars per share) | $ 0.60 | $ 0.90 | $ 1.71 | $ 2.90 |
Diluted earnings per common share attributable to Masonite (in dollars per share) | $ 0.59 | $ 0.89 | $ 1.68 | $ 2.85 |
Other comprehensive income: | ||||
Net income | $ 16,095 | $ 25,544 | $ 46,165 | $ 83,021 |
Foreign currency translation gain (loss) | (12,733) | 2,484 | (3,920) | (23,187) |
Amortization of actuarial net losses | 404 | 300 | 1,211 | 899 |
Income tax expense related to other comprehensive income | (114) | (63) | (299) | (263) |
Other comprehensive income (loss), net of tax | (12,443) | 2,721 | (3,008) | (22,551) |
Comprehensive income | 3,652 | 28,265 | 43,157 | 60,470 |
Less: comprehensive income attributable to non-controlling interests | 1,004 | 990 | 3,391 | 2,288 |
Comprehensive income attributable to Masonite | $ 2,648 | $ 27,275 | $ 39,766 | $ 58,182 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 29, 2019 | Dec. 30, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 109,955 | $ 115,656 |
Restricted cash | 10,645 | 10,485 |
Accounts receivable, net | 311,074 | 283,580 |
Inventories, net | 253,805 | 250,407 |
Prepaid expenses | 32,044 | 32,970 |
Income taxes receivable | 5,817 | 3,495 |
Total current assets | 723,340 | 696,593 |
Property, plant and equipment, net | 593,225 | 609,753 |
Operating lease right-of-use assets | 137,918 | 0 |
Investment in equity investees | 15,953 | 13,474 |
Goodwill | 180,066 | 180,297 |
Intangible assets, net | 189,853 | 212,045 |
Deferred income taxes | 28,737 | 28,509 |
Other assets | 40,789 | 37,794 |
Total assets | 1,909,881 | 1,778,465 |
Current liabilities: | ||
Accounts payable | 98,983 | 96,362 |
Accrued expenses | 172,169 | 147,345 |
Income taxes payable | 1,581 | 1,599 |
Total current liabilities | 272,733 | 245,306 |
Long-term debt | 790,692 | 796,398 |
Long-term operating lease liabilities | 128,491 | 0 |
Deferred income taxes | 86,412 | 82,122 |
Other liabilities | 19,929 | 32,334 |
Total liabilities | 1,298,257 | 1,156,160 |
Commitments and Contingencies (Note 10) | ||
Equity: | ||
Share capital: unlimited shares authorized, no par value, 24,848,264 and 25,835,664 shares issued and outstanding as of September 29, 2019, and December 30, 2018, respectively | 558,026 | 575,207 |
Additional paid-in capital | 218,411 | 218,988 |
Accumulated deficit | (20,581) | (30,836) |
Accumulated other comprehensive loss | (156,153) | (152,919) |
Total equity attributable to Masonite | 599,703 | 610,440 |
Equity attributable to non-controlling interests | 11,921 | 11,865 |
Total equity | 611,624 | 622,305 |
Total liabilities and equity | $ 1,909,881 | $ 1,778,465 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - shares | Sep. 29, 2019 | Dec. 30, 2018 |
Statement of Financial Position [Abstract] | ||
Shares issued | 24,848,264 | 25,835,664 |
Shares outstanding | 24,848,264 | 25,835,664 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Changes in Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) | Equity Attributable to Noncontrolling Interests |
Opening Balance, Value at Dec. 31, 2017 | $ 735,902 | $ 624,403 | $ 226,528 | $ (18,150) | $ (110,152) | $ 13,273 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common shares issued for delivery of share based awards, Value | 11,043 | (11,043) | ||||
Common shares issued under employee stock purchase plan, value | 949 | (102) | ||||
Common shares repurchased and retired, Value | (32,430) | (62,074) | ||||
Share based compensation expense | 8,243 | |||||
Common shares withheld to cover income taxes payable due to delivery of share based awards | (3,594) | |||||
Net income | 83,021 | 80,363 | 2,658 | |||
Other comprehensive income (loss), net of tax | (22,551) | (22,181) | (370) | |||
Dividends to noncontrolling interests | (3,678) | |||||
Ending Balance, Value at Sep. 30, 2018 | 703,686 | $ 603,965 | 220,032 | 139 | (132,333) | 11,883 |
Opening Balance, Shares at Dec. 31, 2017 | 28,369,877 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common shares issued for delivery of share based awards, Shares | 215,910 | |||||
Common shares issued under employee stock purchase plan | 13,984 | |||||
Common shares repurchased and retired, Shares | (1,464,700) | |||||
Ending Balance, Shares at Sep. 30, 2018 | 27,135,071 | |||||
Opening Balance, Value at Jul. 01, 2018 | 709,515 | $ 614,371 | 219,931 | (2,023) | (134,812) | 12,048 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common shares issued for delivery of share based awards, Value | 345 | (345) | ||||
Common shares issued under employee stock purchase plan, value | 450 | (23) | ||||
Common shares repurchased and retired, Value | (11,201) | (22,634) | ||||
Share based compensation expense | 1,640 | |||||
Common shares withheld to cover income taxes payable due to delivery of share based awards | (1,171) | |||||
Net income | 25,544 | 24,796 | 748 | |||
Other comprehensive income (loss), net of tax | 2,721 | 2,479 | 242 | |||
Dividends to noncontrolling interests | (1,155) | |||||
Ending Balance, Value at Sep. 30, 2018 | 703,686 | $ 603,965 | 220,032 | 139 | (132,333) | 11,883 |
Opening Balance, Shares at Jul. 01, 2018 | 27,597,126 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common shares issued for delivery of share based awards, Shares | 34,513 | |||||
Common shares issued under employee stock purchase plan | 6,598 | |||||
Common shares repurchased and retired, Shares | (503,166) | |||||
Ending Balance, Shares at Sep. 30, 2018 | 27,135,071 | |||||
Opening Balance, Value at Dec. 30, 2018 | 622,305 | $ 575,207 | 218,988 | (30,836) | (152,919) | 11,865 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common shares issued for delivery of share based awards, Value | 7,412 | (7,412) | ||||
Common shares issued under employee stock purchase plan, value | 1,045 | (179) | ||||
Common shares repurchased and retired, Value | (25,638) | (32,745) | ||||
Share based compensation expense | 8,468 | |||||
Common shares withheld to cover income taxes payable due to delivery of share based awards | (1,454) | |||||
Net income | 46,165 | 43,000 | 3,165 | |||
Other comprehensive income (loss), net of tax | (3,008) | (3,234) | 226 | |||
Dividends to noncontrolling interests | (3,335) | |||||
Ending Balance, Value at Sep. 29, 2019 | $ 611,624 | $ 558,026 | 218,411 | (20,581) | (156,153) | 11,921 |
Opening Balance, Shares at Dec. 30, 2018 | 25,835,664 | 25,835,664 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common shares issued for delivery of share based awards, Shares | 142,475 | |||||
Common shares issued under employee stock purchase plan | 18,940 | |||||
Common shares repurchased and retired, Shares | (1,148,815) | |||||
Ending Balance, Shares at Sep. 29, 2019 | 24,848,264 | 24,848,264 | ||||
Opening Balance, Value at Jun. 30, 2019 | $ 614,571 | $ 561,543 | 215,418 | (30,225) | (143,832) | 11,667 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common shares issued for delivery of share based awards, Value | 329 | (329) | ||||
Common shares issued under employee stock purchase plan, value | 528 | (47) | ||||
Common shares repurchased and retired, Value | (4,374) | (5,325) | ||||
Share based compensation expense | 3,695 | |||||
Common shares withheld to cover income taxes payable due to delivery of share based awards | (326) | |||||
Net income | 16,095 | 14,969 | 1,126 | |||
Other comprehensive income (loss), net of tax | (12,443) | (12,321) | (122) | |||
Dividends to noncontrolling interests | (750) | |||||
Ending Balance, Value at Sep. 29, 2019 | $ 611,624 | $ 558,026 | $ 218,411 | $ (20,581) | $ (156,153) | $ 11,921 |
Opening Balance, Shares at Jun. 30, 2019 | 25,019,940 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common shares issued for delivery of share based awards, Shares | 13,347 | |||||
Common shares issued under employee stock purchase plan | 9,904 | |||||
Common shares repurchased and retired, Shares | (194,927) | |||||
Ending Balance, Shares at Sep. 29, 2019 | 24,848,264 | 24,848,264 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 29, 2019 | Sep. 30, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 46,165 | $ 83,021 |
Adjustments to reconcile net income to net cash flow provided by operating activities: | ||
Loss on disposal of subsidiaries | 4,605 | 0 |
Loss on extinguishment of debt | 14,523 | 5,414 |
Depreciation | 52,845 | 43,340 |
Amortization | 21,980 | 20,951 |
Share based compensation expense | 8,468 | 8,243 |
Deferred income taxes | 4,914 | 9,985 |
Unrealized foreign exchange loss (gain) | 539 | (699) |
Share of income from equity investees, net of tax | (2,479) | (1,472) |
Pension and post-retirement funding, net of expense | (5,789) | (5,976) |
Non-cash accruals and interest | (309) | 605 |
Loss on sale of property, plant and equipment | 4,940 | 2,574 |
Asset impairment | 13,767 | 0 |
Accounts receivable | (28,921) | (25,780) |
Inventories | (6,038) | (7,480) |
Prepaid expenses | 677 | (2,411) |
Accounts payable and accrued expenses | 12,105 | 12,240 |
Other assets and liabilities | (3,623) | (2,104) |
Net cash flow provided by operating activities | 138,369 | 140,451 |
Cash flows from investing activities: | ||
Additions to property, plant and equipment | (55,573) | (51,259) |
Cash used in acquisitions, net of cash acquired | (1,858) | (135,276) |
Cash disposed in sale of subsidiaries, net of cash proceeds | (230) | 0 |
Proceeds from sale of property, plant and equipment | 91 | 1,404 |
Other investing activities | (1,485) | (2,862) |
Net cash flow used in investing activities | (59,055) | (187,993) |
Cash flows from financing activities: | ||
Proceeds from issuance of long-term debt | 500,000 | 300,000 |
Repayments of long-term debt | (500,115) | (125,279) |
Payment for Debt Extinguishment or Debt Prepayment Cost | (14,065) | (5,250) |
Payments of Debt Issuance Costs | (6,701) | (4,344) |
Tax witholding on share based awards | (1,454) | (3,594) |
Distributions to non-controlling interests | (3,335) | (3,678) |
Repurchases of common shares | (58,383) | (94,504) |
Net cash flow used in financing activities | (84,053) | 63,351 |
Net foreign currency translation adjustment on cash | (802) | (1,045) |
Decrease in cash, cash equivalents and restricted cash | (5,541) | 14,764 |
Cash, cash equivalents and restricted cash, beginning of period | 126,141 | 188,564 |
Cash, cash equivalents and restricted cash, at end of period | $ 120,600 | $ 203,328 |
Business Overview and Significa
Business Overview and Significant Accounting Policies | 9 Months Ended |
Sep. 29, 2019 | |
Accounting Policies [Abstract] | |
Business Overview and Significant Accounting Policies | Business Overview and Significant Accounting Policies Unless we state otherwise or the context otherwise requires, references to "Masonite," "we," "our," "us" and the "Company" in these notes to the condensed consolidated financial statements refer to Masonite International Corporation and its subsidiaries. Description of Business Masonite International Corporation is one of the largest manufacturers of doors in the world, with significant market share in both interior and exterior door products. Masonite operates 67 manufacturing locations in 8 countries and sells doors to customers throughout the world, including the United States, Canada and the United Kingdom. Basis of Presentation We prepare these unaudited condensed consolidated financial statements in accordance with accounting principles generally accepted in the United States of America ("GAAP") and applicable rules and regulations of the U.S. Securities and Exchange Commission ("SEC") regarding interim financial reporting. Accordingly, they do not include all of the information and notes required by GAAP for annual financial statements. In the opinion of management, all adjustments consisting of normal and recurring entries considered necessary for a fair presentation of the results for the interim periods presented have been included. All significant intercompany balances and transactions have been eliminated. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect reported amounts in the financial statements and accompanying notes. These estimates are based on information available as of the date of the unaudited condensed consolidated financial statements; therefore, actual results could differ from those estimates. Interim results are not necessarily indicative of the results for a full year. These unaudited condensed consolidated financial statements should be read in conjunction with the Company's Annual Report on Form 10-K for the fiscal year ended December 30, 2018, as filed with the SEC. Our fiscal year is the 52- or 53-week period ending on the Sunday closest to December 31. In a 52-week year, each fiscal quarter consists of 13 weeks. For ease of disclosure, the 13- and 39-week periods are referred to as three- and nine-month periods, respectively. Certain prior year amounts have been reclassified to conform to the current basis of presentation, related to discontinued operations, as described in the 2018 Form 10-K. Changes in Accounting Standards and Policies There have been no changes in the significant accounting policies from those that were disclosed in the fiscal year 2018 audited consolidated financial statements, other than as noted below. Adoption of Recent Accounting Pronouncements 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 amended the definition of a hosting arrangement and required 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 are 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 was effective for annual periods beginning after December 15, 2019, and interim periods within those annual periods; early adoption was permitted and either retrospective or prospective application was required for all implementation costs incurred after the date of adoption. We have early adopted this guidance prospectively as of December 31, 2018, the beginning of fiscal year 2019, and the adoption did not 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 amended ASC 350 "Intangibles—Goodwill and Other." This ASU simplified the accounting for goodwill impairments and allowed 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 was effective for annual periods beginning after December 15, 2019, and interim periods within those annual periods; early adoption was permitted and prospective application was required. We have early adopted this guidance prospectively as of December 31, 2018, the beginning of fiscal year 2019, and the adoption did not have a material impact on our financial statements. In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)," which replaces the existing guidance in ASC 840, "Leases." This standard was supplemented by ASUs 2018-01, 2018-10, 2018-11 and 2019-01. The updated standards aim to increase transparency and comparability among organizations by requiring lessees to recognize right-of-use ("ROU") 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 were effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods; early adoption was permitted. We have elected to adopt these standards utilizing the modified retrospective method as of December 31, 2018, with the package of practical expedients permitted under the transition guidance of the new standards, which allowed us to not reassess whether any expired or existing contracts contain leases, to carry forward the historical lease classification and permitted us to exclude from our assessment initial direct costs for any existing leases. Additionally, we have elected to utilize the practical expedient which allows us to account for each separate lease component and the non-lease components associated with that lease component as a single lease component. We also made an accounting policy election to exclude leases with an initial term of twelve months or less from our transition adjustment. Lease payments are recognized in the consolidated statements of comprehensive income on a straight-line basis over the lease term. The adoption of the standard resulted in the recognition of a ROU asset and lease liability for our operating leases of $108.0 million and $113.9 million, respectively, as of December 31, 2018. Our operating leases include leases for real estate and machinery and equipment and we have no material finance leases. The difference between the opening ROU asset and lease liability amounts was due to the reclassification of the existing deferred rent liability balance against the opening ROU assets to which it related. The standard did not materially affect our results of operations, liquidity or compliance with our debt covenants under our current agreements. Additional transition disclosures, including our updated lease accounting policy, are included in Note 6. Other Recent Accounting Pronouncements not yet Adopted In August 2018, the FASB issued ASU 2018-14, "Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans," which amended ASC 715, "Compensation—Retirement Benefits." This standard is applicable for employers that sponsor defined benefit pension or other postretirement plans, and eliminates disclosures no longer considered cost beneficial, clarifies specific disclosure requirements for entities that provide aggregate disclosures for two or more plans and adds requirements for explanations for significant gains and losses related to changes in benefit obligations. The guidance will be effective for annual periods ending after December 15, 2020; early adoption is permitted and retrospective application is required. We are in the process of evaluating this guidance to determine the impact it may have on our financial statements. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments—Credit Losses (Topic 326)”, which replaces the incurred loss methodology for recognizing credit losses with a current expected credit losses model. This standard applies to all financial assets, including trade receivables. Our current accounts receivable policy is described in detail in our Annual Report on Form 10-K for the year ended December 30, 2018, and uses historical and current information to estimate the amount of probable credit losses in our existing account receivable balances. The guidance will be effective for annual periods beginning after December 15, 2019, including interim periods within those fiscal years; early adoption is permitted and modified retrospective application is required. We are in the process of evaluating this guidance to determine the impact it may have on our financial statements. |
Acquisitions and Disposition
Acquisitions and Disposition | 9 Months Ended |
Sep. 29, 2019 | |
Business Combinations [Abstract] | |
Acquisitions and Disposition | Acquisitions and Disposition 2019 Acquisition On August 29, 2019, we completed the acquisition of TOPDOORS, s.r.o. ("Top Doors") based in the Czech Republic for cash consideration of $1.6 million, net of cash acquired. Top Doors is a specialist manufacturer of door frames. The excess purchase price over the fair value of net assets acquired of $1.1 million was allocated to goodwill in our Europe segment. The goodwill principally represents anticipated synergies from Top Doors' integration into our existing Europe door business. The purchase price allocation, net sales, net income (loss) attributable to Masonite and pro forma information for Top Doors are not presented as they were not material for any period presented. 2018 Acquisitions On November 1, 2018, we completed the acquisition of the operating assets of Bridgewater Wholesalers Inc. ("BWI") for cash consideration of $22.3 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 $3.7 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 and the goodwill is not deductible for tax purposes. 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 3,739 10,996 33,623 48,358 Intangible assets 2,970 2,750 62,873 68,593 Accounts payable and accrued expenses (6,816) (426) (10,418) (17,660) Deferred income taxes — — (11,546) (11,546) Other assets and liabilities, net 240 — (68) 172 Cash consideration, net of cash acquired $ 22,306 $ 38,967 $ 96,309 $ 157,582 During the nine months ended September 29, 2019, we finalized the purchase price allocation for the BWI acquisition, which resulted in a $0.4 million increase in goodwill due to final working capital adjustments. 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 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: Three Months Ended September 29, 2019 (In thousands) BWI Graham & Maiman DW3 Total 2018 Acquisitions Net sales $ 22,074 $ 17,483 $ 19,316 $ 58,873 Net income attributable to Masonite 359 1,324 3,052 4,735 Nine Months Ended September 29, 2019 (In thousands) BWI Graham & Maiman DW3 Total 2018 Acquisitions Net sales $ 68,532 $ 53,430 $ 58,545 $ 180,507 Net income attributable to Masonite 1,086 2,504 8,518 12,108 Three Months Ended September 30, 2018 (in thousands) Graham & Maiman DW3 Total 2018 Acquisitions Net sales $ 18,336 $ 18,470 $ 36,806 Net income attributable to Masonite 845 1,433 2,278 Nine Months Ended September 30, 2018 (in thousands) Graham & Maiman DW3 Total 2018 Acquisitions Net sales $ 24,602 $ 48,019 $ 72,621 Net income attributable to Masonite 1,147 3,526 4,673 Pro Forma Information The following unaudited pro forma financial information represents the consolidated financial information as if the acquisitions had been included in our consolidated results beginning on the first day of the fiscal year prior to their respective acquisition dates. The pro forma results have been calculated after adjusting the results of the acquired entities to remove intercompany transactions and transaction costs incurred and to reflect the additional depreciation and amortization that would have been charged assuming the fair value adjustments to property, plant and equipment and intangible assets had been applied on the first day of the fiscal year prior to the respective acquisitions, together with the consequential tax effects. The pro forma results do not reflect any cost savings, operating synergies or revenue enhancements that the combined company may achieve as a result of the acquisitions; the costs to combine the companies' operations; or the costs necessary to achieve these costs savings, operating synergies and revenue enhancements. The pro forma results do not necessarily reflect the actual results of operations of the combined companies' under our ownership and operation. Three Months Ended September 30, 2018 (In thousands, except per share amounts) Masonite BWI Intercompany Eliminations Pro Forma Net sales $ 557,148 21,759 $ (10,672) $ 568,235 Net income attributable to Masonite 24,796 123 — 24,919 Basic earnings per common share $ 0.90 $ 0.91 Diluted earnings per common share 0.89 0.89 Nine Months Ended September 30, 2018 (In thousands, except per share amounts) Masonite BWI Graham & Maiman DW3 Intercompany Eliminations Pro Forma Net sales $ 1,641,753 $ 69,332 $ 26,887 $ 4,918 $ (33,558) $ 1,709,332 Net income attributable to Masonite 80,363 392 89 81 80,925 Basic earnings per common share $ 2.90 $ 2.92 Diluted earnings per common share 2.85 2.87 Disposition On March 21, 2019, we completed the sale of all of the capital stock of Performance Doorset Solutions Limited ("PDS") for nominal consideration. We have had and will continue to have no continuing involvement with PDS subsequent to the sale, and the purchasers are not considered to be a related party. The disposition of this business resulted in a loss on disposal of subsidiaries of $4.6 million, which was recognized during the first nine months of 2019 in the Europe segment. The total charge consists of $3.6 million relating to the write-off of the net assets sold and other professional fees and $1.0 million relating to the recognition of the cumulative translation adjustment out of accumulated other comprehensive income (loss). |
Accounts Receivable
Accounts Receivable | 9 Months Ended |
Sep. 29, 2019 | |
Receivables [Abstract] | |
Accounts Receivable | Accounts ReceivableOur customers consist mainly of wholesale distributors, dealers, homebuilders and retail home centers. Our ten largest customers accounted for 51.1% and 54.6% of total accounts receivable as of September 29, 2019, and December 30, 2018, respectively. Our largest customer, The Home Depot, Inc., accounted for more than 10% of the consolidated gross accounts receivable balance as of September 29, 2019, and December 30, 2018. The allowance for doubtful accounts balance was $2.2 million and $2.1 million as of September 29, 2019, and December 30, 2018, respectively.We maintain an accounts receivable sales program with a third party (the "AR Sales Program"). Under the AR Sales Program, we can transfer ownership of eligible trade accounts receivable of certain customers. Receivables are sold outright to a third party that assumes the full risk of collection, without recourse to us in the event of a loss. Transfers of receivables under this program are accounted for as sales. Proceeds from the transfers reflect the face value of the accounts receivable less a discount. Receivables sold under the AR Sales Program are excluded from trade accounts receivable in the condensed consolidated balance sheets and are included in cash flows from operating activities in the condensed consolidated statements of cash flows. The discounts on the sales of trade accounts receivable sold under the AR Sales Program were not material for any of the periods presented and were recorded in selling, general and administration expense within the condensed consolidated statements of comprehensive income. |
Inventories
Inventories | 9 Months Ended |
Sep. 29, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories The amounts of inventory on hand were as follows as of the dates indicated: (In thousands) September 29, 2019 December 30, Raw materials $ 184,271 $ 189,145 Finished goods 79,148 69,026 Provision for obsolete or aged inventory (9,614) (7,764) Inventories, net $ 253,805 $ 250,407 |
Property, Plant and Equipment
Property, Plant and Equipment | 9 Months Ended |
Sep. 29, 2019 | |
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) September 29, 2019 December 30, Land $ 29,578 $ 30,653 Buildings 177,318 179,888 Machinery and equipment 730,789 724,431 Property, plant and equipment, gross 937,685 934,972 Accumulated depreciation (344,460) (325,219) Property, plant and equipment, net $ 593,225 $ 609,753 Total depreciation expense was $16.4 million and $52.8 million in the three and nine months ended September 29, 2019, respectively, and $15.7 million and $43.3 million for the three and nine months ended September 30, 2018, respectively. Depreciation expense is included primarily within cost of goods sold in the condensed consolidated statements of comprehensive income. |
Leases
Leases | 9 Months Ended |
Sep. 29, 2019 | |
Leases [Abstract] | |
Leases | Leases Lease Accounting Policy Our updated policy for lease accounting, which we adopted prospectively as of December 31, 2018, is as follows: We determine if a contract is a lease at inception or upon acquisition and reevaluate each time a lease contract is amended or otherwise modified. A lease will be classified as an operating lease if it does not meet any of the criteria for a finance lease. Those criteria include the transfer of ownership of the underlying asset by the end of the lease term; an option to purchase the underlying asset that we would be reasonably certain to exercise; the lease term is for the major part of the remaining economic life of the underlying asset; the present value of the sum of the lease payments and any residual value guaranteed by us that is not already reflected in the lease payments equals or exceeds substantially all of the fair value of the underlying asset or if the underlying asset is of such a specialized nature that it is expected to have no alternative use to us at the end of the lease term. The assets and liabilities relating to operating leases are included in operating lease ROU assets, accrued expenses, and long-term operating lease liabilities in our consolidated balance sheets. The assets and liabilities relating to finance leases are included in property, plant and equipment and other long-term liabilities in our consolidated balance sheets. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the respective lease commencement date based on the present value of lease payments over the expected lease term. Since our leases do not specify implicit discount rates, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The operating lease ROU asset also includes any initial direct costs and is adjusted for lease incentives and prepaid or accrued rent. The lease term begins on the date when the lessor makes the underlying asset available for use to us, and our expected lease terms include options to extend the lease when it is reasonably certain that we will exercise those options. Lease payments are recognized in the consolidated statements of comprehensive income on a straight-line basis over the expected lease term. Leases with an initial term of 12 months or less are not recorded on the balance sheet, with the related lease expense recognized on a straight-line basis over the lease term. Lease and non-lease components of a contract are combined into a single lease component for accounting purposes. Current Period Lease Disclosures Our operating leases include leases for real estate (including manufacturing sites, warehouses and offices) and machinery and equipment and we have no material finance leases or subleases. Certain of our operating leases contain provisions for renewal ranging from one to four options of one to ten years each. Total operating lease expense, including non-cancelable operating leases and short-term leases, was $10.0 million and $29.7 million for the three and nine months ended September 29, 2019, respectively, and $7.9 million and $23.4 million for the three and nine months ended September 30, 2018, respectively. The current portion of operating lease liabilities is included with accrued expenses in the consolidated balance sheets. Supplemental balance sheet information as of the period indicated related to operating leases was as follows: (In thousands) September 29, 2019 Operating lease right-of-use assets $ 137,918 Current portion of operating lease liabilities 20,403 Long-term operating lease liabilities 128,491 Total operating lease liabilities $ 148,894 Weighted average remaining lease term (years) 15.0 Weighted average discount rate 4.9 % Maturities of operating lease liabilities are as follows: (In thousands) September 29, 2019 Fiscal year: 2019 (remaining three months) $ 6,914 2020 27,178 2021 19,165 2022 15,497 2023 12,643 Thereafter 148,010 Total undiscounted lease payments 229,407 Less imputed interest (80,513) Total $ 148,894 As of September 29, 2019, we have additional undiscounted commitments for operating leases, primarily for administrative offices, that have not yet commenced of $15.8 million. These operating leases will commence during fiscal year 2019 and fiscal year 2020 with lease terms of 10 years. |
Goodwill and Intangbile Assets
Goodwill and Intangbile Assets | 9 Months Ended |
Sep. 29, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Changes in the carrying amount of goodwill were as follows as of the dates indicated: (In thousands) North American Residential Europe Architectural Total December 30, 2018 $ 6,189 $ 63,220 $ 110,888 $ 180,297 Goodwill from 2019 acquisitions — 1,083 — 1,083 Measurement period adjustment 390 — — 390 Foreign exchange fluctuations 7 (1,786) 75 (1,704) September 29, 2019 $ 6,586 $ 62,517 $ 110,963 $ 180,066 During the nine months ended September 29, 2019, we finalized the purchase price allocation for the BWI acquisition, which resulted in a $0.4 million increase in goodwill due to final working capital adjustments. During the fourth quarter of 2018, we performed our annual quantitative impairment test of goodwill for all of our reporting units, including the Architectural reporting unit, determining that goodwill was not impaired based upon the forecasts utilized in that test. While there was no identification of potential impairment at that time, it is possible that the estimate of discounted cash flows for the Architectural reporting unit may change in the near term based upon actual results and updated forward-looking forecasts, resulting in the need to write down goodwill to its fair value. While an interim impairment test of the Architectural reporting unit’s goodwill was not required during the nine months ended September 29, 2019, it is possible that such a test could be required during future interim periods. The cost and accumulated amortization values of our intangible assets were as follows as of the dates indicated: September 29, 2019 December 30, 2018 (In thousands) Cost Accumulated Amortization Net Book Value Cost Accumulated Amortization Net Book Value Definite life intangible assets: Customer relationships $ 170,895 $ (94,623) $ 76,272 $ 173,637 $ (81,220) $ 92,417 Patents 31,926 (23,338) 8,588 31,363 (21,840) 9,523 Software 33,541 (31,626) 1,915 32,660 (29,296) 3,364 Trademarks and tradenames 32,938 (6,464) 26,474 33,784 (3,948) 29,836 Other 969 (421) 548 971 (97) 874 Total definite life intangible assets 270,269 (156,472) 113,797 272,415 (136,401) 136,014 Indefinite life intangible assets: Trademarks and tradenames 76,056 — 76,056 76,031 — 76,031 Total intangible assets $ 346,325 $ (156,472) $ 189,853 $ 348,446 $ (136,401) $ 212,045 Amortization of intangible assets was $7.0 million and $21.3 million in the three and nine months ended September 29, 2019, respectively, and $7.0 million and $20.3 million for the three and nine months ended September 30, 2018, respectively. Amortization expense is classified within selling, general and administration expenses in the condensed consolidated statements of comprehensive income. The estimated future amortization of intangible assets with definite lives is as follows: (In thousands) September 29, 2019 Fiscal year: 2019 (remaining three months) $ 6,612 2020 22,050 2021 18,465 2022 15,031 2023 13,567 |
Accrued Expenses
Accrued Expenses | 9 Months Ended |
Sep. 29, 2019 | |
Accrued Expenses [Abstract] | |
Accrued expenses | Accrued Expenses The details of our accrued expenses were as follows as of the dates indicated: (In thousands) September 29, 2019 December 30, Accrued payroll $ 56,240 $ 39,823 Accrued rebates 38,645 36,711 Current portion of operating lease liabilities 20,403 — Accrued interest 5,900 14,570 Other accruals 50,981 56,241 Total accrued expenses $ 172,169 $ 147,345 |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Sep. 29, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt (In thousands) September 29, 2019 December 30, 5.375% senior unsecured notes due 2028 $ 500,000 $ — 5.750% senior unsecured notes due 2026 300,000 300,000 5.625% senior unsecured notes due 2023 — 500,000 Unamortized premium on 2023 Notes — 3,684 Debt issuance costs (10,327) (8,394) Other long-term debt 1,019 1,108 Total long-term debt $ 790,692 $ 796,398 Interest expense related to our consolidated indebtedness under senior unsecured notes was $12.0 million and $34.8 million for the three and nine months ended and September 29, 2019, respectively, and $10.0 million and $27.7 million for the three and nine months ended September 30, 2018, respectively. 5.375% Senior Notes due 2028 On July 25, 2019, we issued $500.0 million aggregate principal senior unsecured notes (the "2028 Notes"). The 2028 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 2028 Notes were issued without registration rights and are not listed on any securities exchange. The 2028 Notes bear interest at 5.375% per annum, payable in cash semiannually in arrears on February 1 and August 1 of each year and are due February 1, 2028. The 2028 notes were issued at par. We received net proceeds of $493.3 million after deducting $6.7 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 2028 Notes using the effective interest method. The net proceeds from issuance of the 2028 Notes, together with available cash balances, were used to redeem the remaining $500.0 million aggregate principal amount of the 2023 Notes (as described below), including the payment of related premiums, fees and expenses. Subsequent to the closing of the 2028 Notes offering, the 2023 Notes were redeemed, and the notes were considered extinguished as of August 10, 2019. Under the terms of the indenture governing the 2023 Notes, we paid the applicable premium of $14.1 million. Additionally, the unamortized premium of $3.1 million and unamortized debt issuance costs of $3.5 million relating to the 2023 Notes were written off in conjunction with the extinguishment of the 2023 Notes. The resulting loss on extinguishment of debt was $14.5 million and is recorded as part of income from continuing operations before income tax expense in the condensed 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 2028 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 2028 Notes, in whole or in part, at any time on or after February 1, 2023, at the applicable redemption prices specified under the indenture governing the 2028 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 2028 Notes at a purchase price of 101.00% of their principal amount, plus accrued and unpaid interest, if any, to, but excluding, the repurchase date. The indenture governing the 2028 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 2028 Notes. In addition, if in the future the 2028 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 2028 Notes contains customary events of default (subject in certain cases to customary grace and cure periods). As of September 29, 2019, we were in compliance with all covenants under the indenture governing the 2028 Notes. 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 September 29, 2019, and 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, and to buyers outside the United States pursuant to Regulation S under the Securities Act. The 2023 Notes were issued without registration rights and were not listed on any securities exchange. The 2023 Notes bore interest at 5.625% per annum, payable in cash semiannually in arrears on March 15 and September 15 of each year and were 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 was 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 were 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 were for general corporate purposes. The net proceeds from the 2015 issuance of the 2023 Notes, together with available cash balances, were used to redeem $500.0 million aggregate principal of prior 8.25% senior unsecured notes due 2021 and to pay related premiums, fees and expenses. As of August 10, 2019, the 2023 Notes were fully redeemed, as described above. ABL Facility On January 31, 2019, we and certain of our subsidiaries amended and restated our asset-based revolving credit facility (the "ABL Facility") in order to extend the maturity date of the ABL Facility and amend certain other provisions. The amended and restated ABL Facility increased the revolving commitments to $250.0 million from $150.0 million and extended the final maturity date to January 31, 2024, from April 9, 2020. 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 opinion, (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 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 September 29, 2019, and 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 | 9 Months Ended |
Sep. 29, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The following discussion describes material developments in previously disclosed legal proceedings that occurred since December 30, 2018. Refer to Note 9. Commitments and Contingencies in the consolidated financial statements in our Annual Report on Form 10-K for the year ended December 30, 2018, for a full description of the previously disclosed legal proceedings. Class Action Proceedings On September 18, 2019, the Court ruled on Defendants’ motion to dismiss the consolidated purported class action direct purchaser and end-purchaser complaints filed against us and Jeld-Wen, Inc. The Court: (i) denied Defendants’ motion to dismiss the direct purchasers’ Sherman Act claims, (ii) granted Defendants’ motion to dismiss the direct purchasers’ fraudulent concealment claims (limiting the claims they may assert to those within four years of the filing of their complaint), and (iii) granted in part and denied in part Defendants’ motion to dismiss the state law claims filed by the end-purchaser plaintiffs, dismissing 66 of 91 state law claims. On October 31, 2019, the Court granted end-purchaser plaintiffs' motion to amend their complaint in order to correct certain deficiencies identified by the Court in its order on the motion to dismiss various state law claims. The Court's order is likely to lead to the reinstatement of some of the end-purchaser plaintiffs' dismissed claims where the basis for dismissal was the lack of a representative plaintiff from certain states. The Court gave end-purchaser plaintiffs until November 12, 2019, to amend their complaint. Discovery in the case is proceeding. The Court has set a trial date of October 20, 2020. In addition, from time to time, we are involved in various claims and legal actions. In the opinion of management, the ultimate disposition of these matters, individually and in the aggregate, will not have a material effect on our financial condition, results of operations or cash flows. |
Share Based Compensation Plans
Share Based Compensation Plans | 9 Months Ended |
Sep. 29, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Share Based Compensation Plans | Share Based Compensation Plans Share based compensation expense was $3.7 million and $8.5 million for the three and nine months ended September 29, 2019, respectively, and $1.6 million and $8.2 million for the three and nine months ended September 30, 2018, respectively. As of September 29, 2019, the total remaining unrecognized compensation expense related to share based compensation amounted to $18.1 million, which will be amortized over the weighted average remaining requisite service period of 1.7 years. Share based compensation expense is recognized using a graded-method approach, or to a lesser extent a cliff-vesting approach, depending on the terms of the individual award and is classified within selling, general and administration expenses in the condensed consolidated statements of comprehensive income. All share based awards are settled through issuance of new shares of our common stock. The share based award agreements contain restrictions on sale or transfer other than in limited circumstances. All other transfers would cause the share based awards to become null and void. Equity Incentive Plans Our equity incentive plans under the 2009 Plan and the 2012 Plan are described in detail and defined in our Annual Report on Form 10-K for the year ended December 30, 2018. 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 canceled. As of September 29, 2019, there were 669,118 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, which is described in detail in our Annual Report on Form 10-K for the year ended December 30, 2018. As of September 29, 2019, the liability and asset relating to deferred compensation had a fair value of $6.2 million and $6.3 million, respectively. Any unfunded gain or loss relating to changes in the fair value of the deferred compensation liability is recognized in selling, general and administration expense in the condensed consolidated statements of comprehensive income. As of September 29, 2019, participation in the deferred compensation plan is limited and no restricted stock awards have been deferred into the deferred compensation plan. Stock Appreciation Rights We have granted Stock Appreciation Rights ("SARs") to certain employees under both the 2009 Plan and the 2012 Plan, which entitle the recipient to the appreciation in value of a number of common shares over the exercise price over a period of time, each as specified in the applicable award agreement. The exercise price of any SAR granted may not be less than the fair market value of our common shares on the date of grant. The compensation expense for the SARs is measured based on the fair value of the SARs at the date of grant and is recognized over the requisite service period. The SARs vest over a maximum of three years, have a life of ten years and settle in common shares. We recognize forfeitures of SARs in the period in which they occur. The total fair value of SARs vested was $1.1 million during the nine months ended September 29, 2019. Nine Months Ended September 29, 2019 Stock Appreciation Rights Aggregate Intrinsic Value (in thousands) Weighted Average Exercise Price Average Remaining Contractual Life (Years) Outstanding, beginning of period 514,313 $ 7,254 $ 39.01 4.6 Granted 111,230 57.29 Exercised (56,765) 2,073 18.76 Forfeited (8,329) 67.24 Outstanding, end of period 560,449 $ 8,961 $ 44.27 3.8 Exercisable, end of period 386,442 $ 8,921 $ 36.66 2.0 The value of SARs granted is determined using the Black-Scholes-Merton valuation model, and the corresponding expense is recognized over the average requisite service period of 2.0 years for all periods presented. 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: 2019 Grants SAR value (model conclusion) $ 12.26 Risk-free rate 2.2 % Expected dividend yield 0.0 % Expected volatility 21.9 % Expected term (years) 6.0 Restricted Stock Units We have granted Restricted Stock Units ("RSUs") to directors and certain employees under both the 2009 Plan and the 2012 Plan. The RSUs confer the right to receive shares of our common stock at a specified future date or when certain conditions are met. The compensation expense for the RSUs awarded is based on the fair value of the RSUs at the date of grant and is recognized over the requisite service period. The RSUs vest over a maximum of three years and call for the underlying shares to be delivered no later than 30 days following the vesting date unless the participant is subject to a blackout period. In such case, the shares are to be delivered once the blackout restriction has been lifted. We recognize forfeitures of RSUs in the period in which they occur. Nine Months Ended September 29, 2019 Total Restricted Stock Units Outstanding Weighted Average Grant Date Fair Value Outstanding, beginning of period 429,027 $ 66.03 Granted 297,115 56.02 Performance adjustment (1) (21,953) 57.51 Delivered (115,520) Withheld to cover (2) (19,831) Forfeited (33,897) Outstanding, end of period 534,941 $ 59.60 ____________ (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 four-fifths of the RSUs granted during the nine months ended September 29, 2019, 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 expense for RSUs granted in the nine months ended September 29, 2019, is being recognized over the weighted average requisite service period of 2.3 years. 135,847 RSUs vested during the nine months ended September 29, 2019, at a fair value of $8.4 million. |
Restructuring Costs
Restructuring Costs | 9 Months Ended |
Sep. 29, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Costs | Restructuring Costs There were no restructuring costs in the three and nine months ended September 30, 2018. The following table summarizes the restructuring charges recorded for the periods indicated: Three Months Ended September 29, 2019 (In thousands) North American Residential Europe Architectural Corporate & Other Total 2019 Plan $ 1,351 $ — $ 32 $ (56) $ 1,327 2018 Plan 410 257 — — 667 Total Restructuring Costs $ 1,761 $ 257 $ 32 $ (56) $ 1,994 Nine Months Ended September 29, 2019 (In thousands) North American Residential Europe Architectural Corporate & Other Total 2019 Plan $ 3,755 $ 336 $ 518 $ 403 $ 5,012 2018 Plan 1,199 884 — — 2,083 Total Restructuring Costs $ 4,954 $ 1,220 $ 518 $ 403 $ 7,095 Cumulative Amount Incurred Through September 29, 2019 (In thousands) North American Residential Europe Architectural Corporate & Other Total 2019 Plan $ 3,755 $ 336 $ 518 $ 403 $ 5,012 2018 Plan 1,474 2,233 — — 3,707 2016 Plan — — 3,707 — 3,707 2014 Plan — — — 7,993 7,993 Total Restructuring Costs $ 5,229 $ 2,569 $ 4,225 $ 8,396 $ 20,419 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 across all of our reportable segments and in our head offices. The reorganization of our manufacturing capacity involves specific plants in the North American Residential and Architectural segments and costs associated with the closure of these plants and related headcount reductions began taking place 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. 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 September 29, 2019, we expect to incur approximately $8 million to $10 million of additional charges related to the 2019 Plan. 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 resulted in the closure of one existing facility and related headcount reductions which completed 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. As of September 29, 2019, we expect to incur approximately $1 million of additional charges related to the 2018 Plan. Our restructuring plans initiated in 2016 and prior years are described in detail in our Annual Report on Form 10-K for the year ended December 30, 2018. Costs and actions associated with these restructuring plans include severance and closure charges and are substantially complete. As of September 29, 2019, we do not expect to incur any material future charges relating to our restructuring plans initiated in 2016 and prior years. 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 three or nine months ended September 29, 2019, or September 30, 2018, or on the consolidated balance sheets as of September 29, 2019, or December 30, 2018. The changes in the accrual for restructuring by activity were as follows for the periods indicated: (In thousands) December 30, Severance Closure Costs Cash Payments September 29, 2019 2019 Plan $ — $ 3,393 $ 1,619 $ (4,185) $ 827 2018 Plan 596 1,798 285 (2,653) 26 Other 58 — — (58) — Total $ 654 $ 5,191 $ 1,904 $ (6,896) $ 853 (In thousands) December 31, Cash Payments September 30, 2016 Plan $ 90 $ (90) $ — Other 194 (113) 81 Total $ 284 $ (203) $ 81 |
Asset Impairment
Asset Impairment | 9 Months Ended |
Sep. 29, 2019 | |
Asset Impairment Charges [Abstract] | |
Asset Impairment | Asset ImpairmentDuring the nine months ended September 29, 2019, we recognized non-cash asset impairment charges of $13.8 million related to two asset groups in the North American Residential segment, as a result of announced plant closures under the 2019 Plan. This amount was determined based upon the excess of the asset groups' carrying values of property, plant and equipment and operating lease right-of-use assets over the respective fair values of such assets, determined using a discounted cash flows approach for each asset group. Each of these valuations 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 and the salvage value for each of the asset groups. The fair value of the asset groups was determined to be $9.4 million, compared to a book value of $23.2 million, with the difference representing the asset impairment charges recorded in the condensed consolidated statements of comprehensive income. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 29, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income TaxesThe effective tax rate differs from the Canadian statutory rate of 26.4% primarily due to mix of earnings in foreign jurisdictions that are subject to tax rates which differ from the Canadian statutory rate and changes in our valuation allowances. In addition, we recognized $0.1 million of income tax benefit due to the exercise and delivery of share-based awards during the three and nine months ended September 29, 2019, compared to $0.8 million and $1.1 million of income tax benefit during the three and nine months ended September 30, 2018. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 29, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings per share ("EPS") is calculated by dividing earnings attributable to Masonite by the weighted-average number of our common shares outstanding during the period. Diluted EPS is calculated by dividing earnings attributable to Masonite by the weighted-average number of common shares plus the incremental number of shares issuable from non-vested and vested RSUs and SARs outstanding during the period. (In thousands, except share and per share information) Three Months Ended Nine Months Ended September 29, 2019 September 30, 2018 September 29, 2019 September 30, 2018 Net income attributable to Masonite $ 14,969 $ 24,796 $ 43,000 $ 80,363 Shares used in computing basic earnings per share 24,944,126 27,477,430 25,215,034 27,758,784 Effect of dilutive securities: Incremental shares issuable under share compensation plans 299,554 434,510 306,663 475,279 Shares used in computing diluted earnings per share 25,243,680 27,911,940 25,521,697 28,234,063 Basic earnings per common share attributable to Masonite $ 0.60 $ 0.90 $ 1.71 $ 2.90 Diluted earnings per common share attributable to Masonite $ 0.59 $ 0.89 $ 1.68 $ 2.85 Anti-dilutive instruments excluded from diluted earnings per common share: Stock appreciation rights 283,966 51,129 292,295 51,129 Restricted stock units — — 3,584 — The weighted average number of shares outstanding utilized for the diluted EPS calculation contemplates the exercise of all currently outstanding SARs and the conversion of all RSUs. The dilutive effect of such equity awards is calculated based on the weighted average share price for each fiscal period using the treasury stock method. For all periods presented, common shares issuable for stock instruments which would have had an anti-dilutive impact under the treasury stock method have been excluded from the computation of diluted earnings per share. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 29, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Our reportable segments are organized and managed principally by end market: North American Residential, Europe and Architectural. The North American Residential reportable segment is the aggregation of the Wholesale and Retail operating segments. The Europe reportable segment is the aggregation of the United Kingdom and Central Eastern Europe operating segments. The Architectural reportable segment consists solely of the Architectural operating segment. The Corporate & Other category includes unallocated corporate costs and the results of immaterial operating segments which were not aggregated into any reportable segment. Operating segments are aggregated into reportable segments only if they exhibit similar economic characteristics. In addition to similar economic characteristics we also consider the following factors in determining the reportable segments: the nature of business activities, the management structure directly accountable to our chief operating decision maker for operating and administrative activities, availability of discrete financial information and information presented to the Board of Directors and investors. Our management reviews net sales and Adjusted EBITDA (as defined below) to evaluate segment performance and allocate resources. Net assets are not allocated to the reportable segments. Adjusted EBITDA is a non-GAAP financial measure which does not have a standardized meaning under GAAP and is unlikely to be comparable to similar measures used by other companies. Adjusted EBITDA should not be considered as an alternative to either net income or operating cash flows determined in accordance with GAAP. Adjusted EBITDA is defined as net income (loss) attributable to Masonite adjusted to exclude the following items: • depreciation; • amortization; • share based compensation expense; • loss (gain) on disposal of property, plant and equipment; • registration and listing fees; • restructuring costs; • asset impairment; • loss (gain) on disposal of subsidiaries; • interest expense (income), net; • loss on extinguishment of debt; • other expense (income), net; • income tax expense (benefit); • loss (income) from discontinued operations, net of tax; and • net income (loss) attributable to non-controlling interest. This definition of Adjusted EBITDA differs from the definitions of EBITDA contained in the indentures governing the 2028 Notes and 2026 Notes and the credit agreement governing the ABL Facility. Adjusted EBITDA is used to evaluate and compare the performance of the segments and it is one of the primary measures used to determine employee incentive compensation. Intersegment transfers are negotiated on an arm's length basis, using market prices. Certain information with respect to segments is as follows for the periods indicated: Three Months Ended September 29, 2019 (In thousands) North American Residential Europe Architectural Corporate & Other Total Net sales $ 374,612 $ 76,308 $ 100,707 $ 5,814 $ 557,441 Intersegment sales (701) (343) (4,205) — (5,249) Net sales to external customers $ 373,911 $ 75,965 $ 96,502 $ 5,814 $ 552,192 Adjusted EBITDA $ 61,549 $ 10,645 $ 13,920 $ (10,270) $ 75,844 Three Months Ended September 30, 2018 (In thousands) North American Residential Europe Architectural Corporate & Other Total Net sales $ 369,491 $ 91,588 $ 96,116 $ 5,609 $ 562,804 Intersegment sales (1,229) (362) (4,065) — (5,656) Net sales to external customers $ 368,262 $ 91,226 $ 92,051 $ 5,609 $ 557,148 Adjusted EBITDA $ 53,414 $ 10,678 $ 11,228 $ (4,559) $ 70,761 Nine Months Ended September 29, 2019 (In thousands) North American Residential Europe Architectural Corporate & Other Total Net sales $ 1,109,919 $ 242,408 $ 290,206 $ 17,741 $ 1,660,274 Intersegment sales (2,673) (1,223) (10,932) — (14,828) Net sales to external customers $ 1,107,246 $ 241,185 $ 279,274 $ 17,741 $ 1,645,446 Adjusted EBITDA $ 178,571 $ 34,050 $ 34,312 $ (25,877) $ 221,056 Nine Months Ended September 30, 2018 (In thousands) North American Residential Europe Architectural Corporate & Other Total Net sales $ 1,108,969 $ 280,729 $ 254,232 $ 16,350 $ 1,660,280 Intersegment sales (3,161) (1,653) (13,713) — (18,527) Net sales to external customers $ 1,105,808 $ 279,076 $ 240,519 $ 16,350 $ 1,641,753 Adjusted EBITDA $ 162,775 $ 34,250 $ 30,886 $ (17,450) $ 210,461 A reconciliation of our consolidated Adjusted EBITDA to net income (loss) attributable to Masonite is set forth as follows for the periods indicated: Three Months Ended Nine Months Ended (In thousands) September 29, 2019 September 30, 2018 September 29, 2019 September 30, 2018 Adjusted EBITDA $ 75,844 $ 70,761 $ 221,056 $ 210,461 Less (plus): Depreciation 16,359 15,706 52,845 43,340 Amortization 7,054 7,041 21,980 20,951 Share based compensation expense 3,695 1,640 8,468 8,243 Loss on disposal of property, plant and equipment 705 62 4,940 2,574 Restructuring costs 1,994 — 7,095 — Asset impairment — — 13,767 — Loss on disposal of subsidiaries — — 4,605 — Interest expense, net 11,909 10,151 34,393 27,981 Loss on extinguishment of debt 14,523 5,414 14,523 5,414 Other income, net of expense (824) (948) (2,410) (1,809) Income tax expense 4,334 6,151 14,685 20,746 Net income attributable to non-controlling interest 1,126 748 3,165 2,658 Net income attributable to Masonite $ 14,969 $ 24,796 $ 43,000 $ 80,363 |
Other Comprehensive Income and
Other Comprehensive Income and Accumulated Other Comprehensive Income | 9 Months Ended |
Sep. 29, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss and Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Loss and Other Comprehensive Income (Loss) A rollforward of the components of accumulated other comprehensive loss is as follows for the periods indicated: Three Months Ended Nine Months Ended (In thousands) September 29, 2019 September 30, 2018 September 29, 2019 September 30, 2018 Accumulated foreign currency translation losses, beginning of period $ (121,440) $ (114,926) $ (129,930) $ (89,824) Foreign currency translation gain (loss) (12,733) 2,484 (4,921) (23,187) Income tax benefit (expense) on foreign currency translation gain (10) 15 15 (28) Cumulative translation adjustment recognized upon deconsolidation of subsidiary — — 1,001 — Less: foreign currency translation gain (loss) attributable to non-controlling interest (122) 242 226 (370) Accumulated foreign currency translation losses, end of period (134,061) (112,669) (134,061) (112,669) Accumulated pension and other post-retirement adjustments, beginning of period (22,392) (19,886) (22,989) (20,328) Amortization of actuarial net losses 404 300 1,211 899 Income tax expense on amortization of actuarial net losses (104) (78) (314) (235) Accumulated pension and other post-retirement adjustments (22,092) (19,664) (22,092) (19,664) Accumulated other comprehensive loss $ (156,153) $ (132,333) $ (156,153) $ (132,333) Other comprehensive income (loss), net of tax $ (12,443) $ 2,721 $ (3,008) $ (22,551) Less: other comprehensive income (loss) attributable to non-controlling interest (122) 242 226 (370) Other comprehensive income (loss) attributable to Masonite $ (12,321) $ 2,479 $ (3,234) $ (22,181) |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 9 Months Ended |
Sep. 29, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information Certain cash and non-cash transactions were as follows for the periods indicated: Nine Months Ended (In thousands) September 29, 2019 September 30, 2018 Transactions involving cash: Interest paid $ 44,230 $ 35,653 Interest received 2,058 621 Income taxes paid 10,731 5,957 Income tax refunds 69 81 Cash paid for operating lease liabilities 19,636 — Non-cash transactions: Right-of-use assets acquired under operating leases 49,932 — The following reconciles total cash, cash equivalents and restricted cash as of the dates indicated: September 29, 2019 December 30, 2018 Cash and cash equivalents $ 109,955 $ 115,656 Restricted cash 10,645 10,485 Total cash, cash equivalents and restricted cash $ 120,600 $ 126,141 Property, plant and equipment additions in accounts payable were $5.0 million and $8.7 million as of September 29, 2019, and December 30, 2018, respectively. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 29, 2019 | |
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 values and carrying values of our long-term debt instruments were as follows for the periods indicated: September 29, 2019 December 30, 2018 (In millions) Fair Value Carrying Value Fair Value Carrying Value 5.375% senior unsecured notes due 2028 $ 521.1 $ 493.5 $ — $ — 5.750% senior unsecured notes due 2026 317.3 296.2 282.6 295.8 5.625% senior unsecured notes due 2023 — — 484.9 499.5 These estimates are based on market quotes and calculations based on current market rates available to us and are categorized as having Level 2 valuation inputs as established by the FASB's Fair Value Framework. Market quotes used in these calculations are based on bid prices for our debt instruments and are obtained from and corroborated with multiple independent sources. The market quotes obtained from independent sources are within the range of management's expectations. |
Business Overview and Signifi_2
Business Overview and Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 29, 2019 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements | 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 amended the definition of a hosting arrangement and required 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 are 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 was effective for annual periods beginning after December 15, 2019, and interim periods within those annual periods; early adoption was permitted and either retrospective or prospective application was required for all implementation costs incurred after the date of adoption. We have early adopted this guidance prospectively as of December 31, 2018, the beginning of fiscal year 2019, and the adoption did not 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 amended ASC 350 "Intangibles—Goodwill and Other." This ASU simplified the accounting for goodwill impairments and allowed 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 was effective for annual periods beginning after December 15, 2019, and interim periods within those annual periods; early adoption was permitted and prospective application was required. We have early adopted this guidance prospectively as of December 31, 2018, the beginning of fiscal year 2019, and the adoption did not have a material impact on our financial statements. In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)," which replaces the existing guidance in ASC 840, "Leases." This standard was supplemented by ASUs 2018-01, 2018-10, 2018-11 and 2019-01. The updated standards aim to increase transparency and comparability among organizations by requiring lessees to recognize right-of-use ("ROU") 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 were effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods; early adoption was permitted. We have elected to adopt these standards utilizing the modified retrospective method as of December 31, 2018, with the package of practical expedients permitted under the transition guidance of the new standards, which allowed us to not reassess whether any expired or existing contracts contain leases, to carry forward the historical lease classification and permitted us to exclude from our assessment initial direct costs for any existing leases. Additionally, we have elected to utilize the practical expedient which allows us to account for each separate lease component and the non-lease components associated with that lease component as a single lease component. We also made an accounting policy election to exclude leases with an initial term of twelve months or less from our transition adjustment. Lease payments are recognized in the consolidated statements of comprehensive income on a straight-line basis over the lease term. The adoption of the standard resulted in the recognition of a ROU asset and lease liability for our operating leases of $108.0 million and $113.9 million, respectively, as of December 31, 2018. Our operating leases include leases for real estate and machinery and equipment and we have no material finance leases. The difference between the opening ROU asset and lease liability amounts was due to the reclassification of the existing deferred rent liability balance against the opening ROU assets to which it related. The standard did not materially affect our results of operations, liquidity or compliance with our debt covenants under our current agreements. Additional transition disclosures, including our updated lease accounting policy, are included in Note 6. Other Recent Accounting Pronouncements not yet Adopted In August 2018, the FASB issued ASU 2018-14, "Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans," which amended ASC 715, "Compensation—Retirement Benefits." This standard is applicable for employers that sponsor defined benefit pension or other postretirement plans, and eliminates disclosures no longer considered cost beneficial, clarifies specific disclosure requirements for entities that provide aggregate disclosures for two or more plans and adds requirements for explanations for significant gains and losses related to changes in benefit obligations. The guidance will be effective for annual periods ending after December 15, 2020; early adoption is permitted and retrospective application is required. We are in the process of evaluating this guidance to determine the impact it may have on our financial statements. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments—Credit Losses (Topic 326)”, which replaces the incurred loss methodology for recognizing credit losses with a current expected credit losses model. This standard applies to all financial assets, including trade receivables. Our current accounts receivable policy is described in detail in our Annual Report on Form 10-K for the year ended December 30, 2018, and uses historical and current information to estimate the amount of probable credit losses in our existing account receivable balances. The guidance will be effective for annual periods beginning after December 15, 2019, including interim periods within those fiscal years; early adoption is permitted and modified retrospective application is required. We are in the process of evaluating this guidance to determine the impact it may have on our financial statements. |
Leases (Policies)
Leases (Policies) | 9 Months Ended |
Sep. 29, 2019 | |
Leases [Abstract] | |
Lease accounting policy | Our updated policy for lease accounting, which we adopted prospectively as of December 31, 2018, is as follows: We determine if a contract is a lease at inception or upon acquisition and reevaluate each time a lease contract is amended or otherwise modified. A lease will be classified as an operating lease if it does not meet any of the criteria for a finance lease. Those criteria include the transfer of ownership of the underlying asset by the end of the lease term; an option to purchase the underlying asset that we would be reasonably certain to exercise; the lease term is for the major part of the remaining economic life of the underlying asset; the present value of the sum of the lease payments and any residual value guaranteed by us that is not already reflected in the lease payments equals or exceeds substantially all of the fair value of the underlying asset or if the underlying asset is of such a specialized nature that it is expected to have no alternative use to us at the end of the lease term. The assets and liabilities relating to operating leases are included in operating lease ROU assets, accrued expenses, and long-term operating lease liabilities in our consolidated balance sheets. The assets and liabilities relating to finance leases are included in property, plant and equipment and other long-term liabilities in our consolidated balance sheets. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the respective lease commencement date based on the present value of lease payments over the expected lease term. Since our leases do not specify implicit discount rates, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The operating lease ROU asset also includes any initial direct costs and is adjusted for lease incentives and prepaid or accrued rent. The lease term begins on the date when the lessor makes the underlying asset available for use to us, and our expected lease terms include options to extend the lease when it is reasonably certain that we will exercise those options. Lease payments are recognized in the consolidated statements of comprehensive income on a straight-line basis over the expected lease term. Leases with an initial term of 12 months or less are not recorded on the balance sheet, with the related lease expense recognized on a straight-line basis over the lease term. Lease and non-lease components of a contract are combined into a single lease component for accounting purposes. |
Acquisitions and Disposition (T
Acquisitions and Disposition (Tables) | 9 Months Ended |
Sep. 29, 2019 | |
Business Acquisition [Line Items] | |
Finite-lived 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. Three Months Ended September 30, 2018 (In thousands, except per share amounts) Masonite BWI Intercompany Eliminations Pro Forma Net sales $ 557,148 21,759 $ (10,672) $ 568,235 Net income attributable to Masonite 24,796 123 — 24,919 Basic earnings per common share $ 0.90 $ 0.91 Diluted earnings per common share 0.89 0.89 Nine Months Ended September 30, 2018 (In thousands, except per share amounts) Masonite BWI Graham & Maiman DW3 Intercompany Eliminations Pro Forma Net sales $ 1,641,753 $ 69,332 $ 26,887 $ 4,918 $ (33,558) $ 1,709,332 Net income attributable to Masonite 80,363 392 89 81 80,925 Basic earnings per common share $ 2.90 $ 2.92 Diluted earnings per common share 2.85 2.87 |
2018 Acquisitions | |
Business Acquisition [Line Items] | |
Aggregate consideration paid for acquisitions | 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 3,739 10,996 33,623 48,358 Intangible assets 2,970 2,750 62,873 68,593 Accounts payable and accrued expenses (6,816) (426) (10,418) (17,660) Deferred income taxes — — (11,546) (11,546) Other assets and liabilities, net 240 — (68) 172 Cash consideration, net of cash acquired $ 22,306 $ 38,967 $ 96,309 $ 157,582 |
Pro forma information of acquisitions | 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: Three Months Ended September 29, 2019 (In thousands) BWI Graham & Maiman DW3 Total 2018 Acquisitions Net sales $ 22,074 $ 17,483 $ 19,316 $ 58,873 Net income attributable to Masonite 359 1,324 3,052 4,735 Nine Months Ended September 29, 2019 (In thousands) BWI Graham & Maiman DW3 Total 2018 Acquisitions Net sales $ 68,532 $ 53,430 $ 58,545 $ 180,507 Net income attributable to Masonite 1,086 2,504 8,518 12,108 Three Months Ended September 30, 2018 (in thousands) Graham & Maiman DW3 Total 2018 Acquisitions Net sales $ 18,336 $ 18,470 $ 36,806 Net income attributable to Masonite 845 1,433 2,278 Nine Months Ended September 30, 2018 (in thousands) Graham & Maiman DW3 Total 2018 Acquisitions Net sales $ 24,602 $ 48,019 $ 72,621 Net income attributable to Masonite 1,147 3,526 4,673 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 29, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | The amounts of inventory on hand were as follows as of the dates indicated: (In thousands) September 29, 2019 December 30, Raw materials $ 184,271 $ 189,145 Finished goods 79,148 69,026 Provision for obsolete or aged inventory (9,614) (7,764) Inventories, net $ 253,805 $ 250,407 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 9 Months Ended |
Sep. 29, 2019 | |
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) September 29, 2019 December 30, Land $ 29,578 $ 30,653 Buildings 177,318 179,888 Machinery and equipment 730,789 724,431 Property, plant and equipment, gross 937,685 934,972 Accumulated depreciation (344,460) (325,219) Property, plant and equipment, net $ 593,225 $ 609,753 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 29, 2019 | |
Leases [Abstract] | |
Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information as of the period indicated related to operating leases was as follows: (In thousands) September 29, 2019 Operating lease right-of-use assets $ 137,918 Current portion of operating lease liabilities 20,403 Long-term operating lease liabilities 128,491 Total operating lease liabilities $ 148,894 Weighted average remaining lease term (years) 15.0 Weighted average discount rate 4.9 % |
Maturities of operating lease liabilities | Maturities of operating lease liabilities are as follows: (In thousands) September 29, 2019 Fiscal year: 2019 (remaining three months) $ 6,914 2020 27,178 2021 19,165 2022 15,497 2023 12,643 Thereafter 148,010 Total undiscounted lease payments 229,407 Less imputed interest (80,513) Total $ 148,894 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 29, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in carrying amount of goodwill | Changes in the carrying amount of goodwill were as follows as of the dates indicated: (In thousands) North American Residential Europe Architectural Total December 30, 2018 $ 6,189 $ 63,220 $ 110,888 $ 180,297 Goodwill from 2019 acquisitions — 1,083 — 1,083 Measurement period adjustment 390 — — 390 Foreign exchange fluctuations 7 (1,786) 75 (1,704) September 29, 2019 $ 6,586 $ 62,517 $ 110,963 $ 180,066 |
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: September 29, 2019 December 30, 2018 (In thousands) Cost Accumulated Amortization Net Book Value Cost Accumulated Amortization Net Book Value Definite life intangible assets: Customer relationships $ 170,895 $ (94,623) $ 76,272 $ 173,637 $ (81,220) $ 92,417 Patents 31,926 (23,338) 8,588 31,363 (21,840) 9,523 Software 33,541 (31,626) 1,915 32,660 (29,296) 3,364 Trademarks and tradenames 32,938 (6,464) 26,474 33,784 (3,948) 29,836 Other 969 (421) 548 971 (97) 874 Total definite life intangible assets 270,269 (156,472) 113,797 272,415 (136,401) 136,014 Indefinite life intangible assets: Trademarks and tradenames 76,056 — 76,056 76,031 — 76,031 Total intangible assets $ 346,325 $ (156,472) $ 189,853 $ 348,446 $ (136,401) $ 212,045 |
Estimated future amortization of intangible assets with definite lives | The estimated future amortization of intangible assets with definite lives is as follows: (In thousands) September 29, 2019 Fiscal year: 2019 (remaining three months) $ 6,612 2020 22,050 2021 18,465 2022 15,031 2023 13,567 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 9 Months Ended |
Sep. 29, 2019 | |
Accrued Expenses [Abstract] | |
Schedule of Accrued Expenses | The details of our accrued expenses were as follows as of the dates indicated: (In thousands) September 29, 2019 December 30, Accrued payroll $ 56,240 $ 39,823 Accrued rebates 38,645 36,711 Current portion of operating lease liabilities 20,403 — Accrued interest 5,900 14,570 Other accruals 50,981 56,241 Total accrued expenses $ 172,169 $ 147,345 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Sep. 29, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | (In thousands) September 29, 2019 December 30, 5.375% senior unsecured notes due 2028 $ 500,000 $ — 5.750% senior unsecured notes due 2026 300,000 300,000 5.625% senior unsecured notes due 2023 — 500,000 Unamortized premium on 2023 Notes — 3,684 Debt issuance costs (10,327) (8,394) Other long-term debt 1,019 1,108 Total long-term debt $ 790,692 $ 796,398 |
Share Based Compensation Plans
Share Based Compensation Plans (Tables) | 9 Months Ended |
Sep. 29, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock appreciation rights award activity | Nine Months Ended September 29, 2019 Stock Appreciation Rights Aggregate Intrinsic Value (in thousands) Weighted Average Exercise Price Average Remaining Contractual Life (Years) Outstanding, beginning of period 514,313 $ 7,254 $ 39.01 4.6 Granted 111,230 57.29 Exercised (56,765) 2,073 18.76 Forfeited (8,329) 67.24 Outstanding, end of period 560,449 $ 8,961 $ 44.27 3.8 Exercisable, end of period 386,442 $ 8,921 $ 36.66 2.0 |
Schedule of Share-based Compensation, Stock Appreciation Rights, Valuation Assumptions | The weighted average grant date assumptions used for the SARs granted were as follows for the periods indicated: 2019 Grants SAR value (model conclusion) $ 12.26 Risk-free rate 2.2 % Expected dividend yield 0.0 % Expected volatility 21.9 % Expected term (years) 6.0 |
Restricted stock units award activity | Nine Months Ended September 29, 2019 Total Restricted Stock Units Outstanding Weighted Average Grant Date Fair Value Outstanding, beginning of period 429,027 $ 66.03 Granted 297,115 56.02 Performance adjustment (1) (21,953) 57.51 Delivered (115,520) Withheld to cover (2) (19,831) Forfeited (33,897) Outstanding, end of period 534,941 $ 59.60 ____________ (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) | 9 Months Ended |
Sep. 29, 2019 | |
Restructuring and Related Activities [Abstract] | |
Total restructuring costs by plan | The following table summarizes the restructuring charges recorded for the periods indicated: Three Months Ended September 29, 2019 (In thousands) North American Residential Europe Architectural Corporate & Other Total 2019 Plan $ 1,351 $ — $ 32 $ (56) $ 1,327 2018 Plan 410 257 — — 667 Total Restructuring Costs $ 1,761 $ 257 $ 32 $ (56) $ 1,994 Nine Months Ended September 29, 2019 (In thousands) North American Residential Europe Architectural Corporate & Other Total 2019 Plan $ 3,755 $ 336 $ 518 $ 403 $ 5,012 2018 Plan 1,199 884 — — 2,083 Total Restructuring Costs $ 4,954 $ 1,220 $ 518 $ 403 $ 7,095 Cumulative Amount Incurred Through September 29, 2019 (In thousands) North American Residential Europe Architectural Corporate & Other Total 2019 Plan $ 3,755 $ 336 $ 518 $ 403 $ 5,012 2018 Plan 1,474 2,233 — — 3,707 2016 Plan — — 3,707 — 3,707 2014 Plan — — — 7,993 7,993 Total Restructuring Costs $ 5,229 $ 2,569 $ 4,225 $ 8,396 $ 20,419 |
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 30, Severance Closure Costs Cash Payments September 29, 2019 2019 Plan $ — $ 3,393 $ 1,619 $ (4,185) $ 827 2018 Plan 596 1,798 285 (2,653) 26 Other 58 — — (58) — Total $ 654 $ 5,191 $ 1,904 $ (6,896) $ 853 (In thousands) December 31, Cash Payments September 30, 2016 Plan $ 90 $ (90) $ — Other 194 (113) 81 Total $ 284 $ (203) $ 81 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 29, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | (In thousands, except share and per share information) Three Months Ended Nine Months Ended September 29, 2019 September 30, 2018 September 29, 2019 September 30, 2018 Net income attributable to Masonite $ 14,969 $ 24,796 $ 43,000 $ 80,363 Shares used in computing basic earnings per share 24,944,126 27,477,430 25,215,034 27,758,784 Effect of dilutive securities: Incremental shares issuable under share compensation plans 299,554 434,510 306,663 475,279 Shares used in computing diluted earnings per share 25,243,680 27,911,940 25,521,697 28,234,063 Basic earnings per common share attributable to Masonite $ 0.60 $ 0.90 $ 1.71 $ 2.90 Diluted earnings per common share attributable to Masonite $ 0.59 $ 0.89 $ 1.68 $ 2.85 Anti-dilutive instruments excluded from diluted earnings per common share: Stock appreciation rights 283,966 51,129 292,295 51,129 Restricted stock units — — 3,584 — |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 29, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Certain information with respect to segments is as follows for the periods indicated: Three Months Ended September 29, 2019 (In thousands) North American Residential Europe Architectural Corporate & Other Total Net sales $ 374,612 $ 76,308 $ 100,707 $ 5,814 $ 557,441 Intersegment sales (701) (343) (4,205) — (5,249) Net sales to external customers $ 373,911 $ 75,965 $ 96,502 $ 5,814 $ 552,192 Adjusted EBITDA $ 61,549 $ 10,645 $ 13,920 $ (10,270) $ 75,844 Three Months Ended September 30, 2018 (In thousands) North American Residential Europe Architectural Corporate & Other Total Net sales $ 369,491 $ 91,588 $ 96,116 $ 5,609 $ 562,804 Intersegment sales (1,229) (362) (4,065) — (5,656) Net sales to external customers $ 368,262 $ 91,226 $ 92,051 $ 5,609 $ 557,148 Adjusted EBITDA $ 53,414 $ 10,678 $ 11,228 $ (4,559) $ 70,761 Nine Months Ended September 29, 2019 (In thousands) North American Residential Europe Architectural Corporate & Other Total Net sales $ 1,109,919 $ 242,408 $ 290,206 $ 17,741 $ 1,660,274 Intersegment sales (2,673) (1,223) (10,932) — (14,828) Net sales to external customers $ 1,107,246 $ 241,185 $ 279,274 $ 17,741 $ 1,645,446 Adjusted EBITDA $ 178,571 $ 34,050 $ 34,312 $ (25,877) $ 221,056 Nine Months Ended September 30, 2018 (In thousands) North American Residential Europe Architectural Corporate & Other Total Net sales $ 1,108,969 $ 280,729 $ 254,232 $ 16,350 $ 1,660,280 Intersegment sales (3,161) (1,653) (13,713) — (18,527) Net sales to external customers $ 1,105,808 $ 279,076 $ 240,519 $ 16,350 $ 1,641,753 Adjusted EBITDA $ 162,775 $ 34,250 $ 30,886 $ (17,450) $ 210,461 |
Reconciliation of consolidated Adjusted EBITDA to net income (loss) attributable to Masonite | A reconciliation of our consolidated Adjusted EBITDA to net income (loss) attributable to Masonite is set forth as follows for the periods indicated: Three Months Ended Nine Months Ended (In thousands) September 29, 2019 September 30, 2018 September 29, 2019 September 30, 2018 Adjusted EBITDA $ 75,844 $ 70,761 $ 221,056 $ 210,461 Less (plus): Depreciation 16,359 15,706 52,845 43,340 Amortization 7,054 7,041 21,980 20,951 Share based compensation expense 3,695 1,640 8,468 8,243 Loss on disposal of property, plant and equipment 705 62 4,940 2,574 Restructuring costs 1,994 — 7,095 — Asset impairment — — 13,767 — Loss on disposal of subsidiaries — — 4,605 — Interest expense, net 11,909 10,151 34,393 27,981 Loss on extinguishment of debt 14,523 5,414 14,523 5,414 Other income, net of expense (824) (948) (2,410) (1,809) Income tax expense 4,334 6,151 14,685 20,746 Net income attributable to non-controlling interest 1,126 748 3,165 2,658 Net income attributable to Masonite $ 14,969 $ 24,796 $ 43,000 $ 80,363 |
Other Comprehensive Income an_2
Other Comprehensive Income and Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
Sep. 29, 2019 | |
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: Three Months Ended Nine Months Ended (In thousands) September 29, 2019 September 30, 2018 September 29, 2019 September 30, 2018 Accumulated foreign currency translation losses, beginning of period $ (121,440) $ (114,926) $ (129,930) $ (89,824) Foreign currency translation gain (loss) (12,733) 2,484 (4,921) (23,187) Income tax benefit (expense) on foreign currency translation gain (10) 15 15 (28) Cumulative translation adjustment recognized upon deconsolidation of subsidiary — — 1,001 — Less: foreign currency translation gain (loss) attributable to non-controlling interest (122) 242 226 (370) Accumulated foreign currency translation losses, end of period (134,061) (112,669) (134,061) (112,669) Accumulated pension and other post-retirement adjustments, beginning of period (22,392) (19,886) (22,989) (20,328) Amortization of actuarial net losses 404 300 1,211 899 Income tax expense on amortization of actuarial net losses (104) (78) (314) (235) Accumulated pension and other post-retirement adjustments (22,092) (19,664) (22,092) (19,664) Accumulated other comprehensive loss $ (156,153) $ (132,333) $ (156,153) $ (132,333) Other comprehensive income (loss), net of tax $ (12,443) $ 2,721 $ (3,008) $ (22,551) Less: other comprehensive income (loss) attributable to non-controlling interest (122) 242 226 (370) Other comprehensive income (loss) attributable to Masonite $ (12,321) $ 2,479 $ (3,234) $ (22,181) |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 9 Months Ended |
Sep. 29, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Cash and non-cash transactions | Certain cash and non-cash transactions were as follows for the periods indicated: Nine Months Ended (In thousands) September 29, 2019 September 30, 2018 Transactions involving cash: Interest paid $ 44,230 $ 35,653 Interest received 2,058 621 Income taxes paid 10,731 5,957 Income tax refunds 69 81 Cash paid for operating lease liabilities 19,636 — Non-cash transactions: Right-of-use assets acquired under operating leases 49,932 — |
Schedule of Cash, Cash Equivalents and Restricted Cash | The following reconciles total cash, cash equivalents and restricted cash as of the dates indicated: September 29, 2019 December 30, 2018 Cash and cash equivalents $ 109,955 $ 115,656 Restricted cash 10,645 10,485 Total cash, cash equivalents and restricted cash $ 120,600 $ 126,141 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 29, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Carrying Values and Estimated Fair Values of Debt 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 values and carrying values of our long-term debt instruments were as follows for the periods indicated: September 29, 2019 December 30, 2018 (In millions) Fair Value Carrying Value Fair Value Carrying Value 5.375% senior unsecured notes due 2028 $ 521.1 $ 493.5 $ — $ — 5.750% senior unsecured notes due 2026 317.3 296.2 282.6 295.8 5.625% senior unsecured notes due 2023 — — 484.9 499.5 |
Business Overview and Signifi_3
Business Overview and Significant Accounting Policies (Details) $ in Thousands | Sep. 29, 2019USD ($)facilityCountry | Dec. 31, 2018USD ($) | Dec. 30, 2018USD ($) |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease right-of-use assets | $ 137,918 | $ 0 | |
Total operating lease liability | $ 148,894 | ||
Number of manufacturing locations | facility | 67 | ||
Number of countries | Country | 8 | ||
Topic 842 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease right-of-use assets | $ 108,000 | ||
Total operating lease liability | $ 113,900 |
Acquisitions and Disposition (N
Acquisitions and Disposition (Narrative) (Details) - USD ($) $ in Thousands | Aug. 29, 2019 | Nov. 01, 2018 | Jun. 01, 2018 | Jan. 29, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 |
Business Acquisition [Line Items] | ||||||||
Cash consideration, net of cash acquired | $ 1,858 | $ 135,276 | ||||||
Goodwill acquired during period | 1,083 | |||||||
Measurement period adjustment | 400 | |||||||
BWI | ||||||||
Business Acquisition [Line Items] | ||||||||
Cash consideration, net of cash acquired | $ 22,306 | |||||||
Goodwill acquired during period | 3,739 | |||||||
Gross contractual value of acquired trade receivables | $ 9,300 | |||||||
Net sales of acquiree since acquisition date | $ 22,074 | 68,532 | ||||||
Graham & Maiman | ||||||||
Business Acquisition [Line Items] | ||||||||
Cash consideration, net of cash acquired | $ 38,967 | |||||||
Goodwill acquired during period | $ 10,996 | |||||||
Net sales of acquiree since acquisition date | 17,483 | $ 18,336 | 53,430 | 24,602 | ||||
DW3 | ||||||||
Business Acquisition [Line Items] | ||||||||
Cash consideration, net of cash acquired | $ 96,309 | |||||||
Goodwill acquired during period | $ 33,623 | |||||||
Acquired equity interests, percent | 100.00% | |||||||
Gross contractual value of acquired trade receivables | $ 9,100 | |||||||
Net sales of acquiree since acquisition date | $ 19,316 | $ 18,470 | $ 58,545 | $ 48,019 | ||||
Top Doors [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Cash consideration, net of cash acquired | $ 1,600 | |||||||
Goodwill acquired during period | $ 1,100 |
Acquisitions and Disposition (A
Acquisitions and Disposition (Aggregate Consideration) (Details) - USD ($) $ in Thousands | Nov. 01, 2018 | Jun. 01, 2018 | Jan. 29, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | Dec. 30, 2018 |
Business Acquisition [Line Items] | ||||||
Goodwill | $ 1,083 | |||||
Cash consideration, net of cash acquired | $ 1,858 | $ 135,276 | ||||
2018 Acquisitions | ||||||
Business Acquisition [Line Items] | ||||||
Accounts receivable | $ 17,805 | |||||
Inventory | 21,885 | |||||
Property, plant and equipment | 29,975 | |||||
Goodwill | 48,358 | |||||
Intangible assets | 68,593 | |||||
Accounts payable and accrued expenses | (17,660) | |||||
Deferred income taxes | (11,546) | |||||
Other assets and liabilities, net | 172 | |||||
Cash consideration, net of cash acquired | $ 157,582 | |||||
BWI | ||||||
Business Acquisition [Line Items] | ||||||
Accounts receivable | $ 9,215 | |||||
Inventory | 10,736 | |||||
Property, plant and equipment | 2,222 | |||||
Goodwill | 3,739 | |||||
Intangible assets | 2,970 | |||||
Accounts payable and accrued expenses | (6,816) | |||||
Deferred income taxes | 0 | |||||
Other assets and liabilities, net | 240 | |||||
Cash consideration, net of cash acquired | $ 22,306 | |||||
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 |
Acquisitions and Disposition In
Acquisitions and Disposition Intangible assets acquired (Details) - USD ($) $ in Thousands | Nov. 01, 2018 | Jun. 01, 2018 | Jan. 29, 2018 |
BWI | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Customer relationships | $ 1,200 | ||
Trademarks and trade names | 900 | ||
Patents | 0 | ||
Other | 870 | ||
Total intangible assets acquired | $ 2,970 | ||
BWI | Customer Relationships | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amortization period for acquired intangible assets | 10 years | ||
BWI | Trademarks and trade names | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amortization period for acquired intangible assets | 10 years | ||
BWI | Other intangible assets | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amortization period for acquired intangible assets | 2 years 2 months 12 days | ||
Graham & Maiman | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Customer relationships | $ 2,400 | ||
Trademarks and trade names | 350 | ||
Patents | 0 | ||
Other | 0 | ||
Total intangible assets acquired | $ 2,750 | ||
Graham & Maiman | Customer Relationships | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amortization period for acquired intangible assets | 10 years | ||
Graham & Maiman | Trademarks and trade names | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amortization period for acquired intangible assets | 1 year 6 months | ||
DW3 | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Customer relationships | $ 49,554 | ||
Trademarks and trade names | 11,785 | ||
Patents | 1,420 | ||
Other | 114 | ||
Total intangible assets acquired | $ 62,873 | ||
DW3 | Customer Relationships | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amortization period for acquired intangible assets | 10 years | ||
DW3 | Trademarks and trade names | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amortization period for acquired intangible assets | 10 years | ||
DW3 | Patents | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amortization period for acquired intangible assets | 10 years | ||
DW3 | Other intangible assets | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amortization period for acquired intangible assets | 3 years |
Acquisitions and Disposition (R
Acquisitions and Disposition (Revenues and Earnings) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
BWI | ||||
Business Acquisition [Line Items] | ||||
Net sales | $ 22,074 | $ 68,532 | ||
Net income (loss) attributable to Masonite | 359 | 1,086 | ||
Graham & Maiman | ||||
Business Acquisition [Line Items] | ||||
Net sales | 17,483 | $ 18,336 | 53,430 | $ 24,602 |
Net income (loss) attributable to Masonite | 1,324 | 845 | 2,504 | 1,147 |
DW3 | ||||
Business Acquisition [Line Items] | ||||
Net sales | 19,316 | 18,470 | 58,545 | 48,019 |
Net income (loss) attributable to Masonite | 3,052 | 1,433 | 8,518 | 3,526 |
2018 Acquisitions | ||||
Business Acquisition [Line Items] | ||||
Net sales | 58,873 | 36,806 | 180,507 | 72,621 |
Net income (loss) attributable to Masonite | $ 4,735 | $ 2,278 | $ 12,108 | $ 4,673 |
Acquisitions and Disposition (P
Acquisitions and Disposition (Pro Forma Information) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
Business Acquisition, Pro Forma Information [Line Items] | ||||
Net sales | $ 552,192 | $ 557,148 | $ 1,645,446 | $ 1,641,753 |
Pro forma revenue | 568,235 | 1,709,332 | ||
Net income (loss) attributable to Masonite | $ 14,969 | 24,796 | $ 43,000 | 80,363 |
Pro forma net income (loss) attributable Masonite | $ 24,919 | $ 80,925 | ||
Basic earnings per common share attributable to Masonite (in dollars per share) | $ 0.60 | $ 0.90 | $ 1.71 | $ 2.90 |
Pro forma earnings per share, basic (in dollars per share) | 0.91 | 2.92 | ||
Diluted earnings per common share attributable to Masonite (in dollars per share) | $ 0.59 | 0.89 | $ 1.68 | 2.85 |
Pro forma earnings per share, diluted (in dollars per share) | $ 0.89 | $ 2.87 | ||
BWI | ||||
Business Acquisition, Pro Forma Information [Line Items] | ||||
Net sales | $ 21,759 | $ 69,332 | ||
Net income (loss) attributable to Masonite | 123 | 392 | ||
Graham & Maiman | ||||
Business Acquisition, Pro Forma Information [Line Items] | ||||
Net sales | 26,887 | |||
Net income (loss) attributable to Masonite | 89 | |||
DW3 | ||||
Business Acquisition, Pro Forma Information [Line Items] | ||||
Net sales | 4,918 | |||
Net income (loss) attributable to Masonite | 81 | |||
2018 Acquisitions | ||||
Business Acquisition, Pro Forma Information [Line Items] | ||||
Pro forma elimination of intercompany sales | $ (10,672) | $ (33,558) |
Acquisitions and Disposition Di
Acquisitions and Disposition Dispositions (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | Mar. 21, 2019 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Loss on disposal of subsidiaries | $ 0 | $ 0 | $ (4,605) | $ 0 | |
Performance Doorset Solutions | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Loss on disposal of subsidiaries | 4,600 | ||||
Net assets | $ 3,600 | ||||
Cumulative translation adjustment | $ 1,000 |
Accounts Receivable (Details)
Accounts Receivable (Details) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 29, 2019USD ($)Customer | Dec. 30, 2018USD ($)Customer | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Allowance for doubtful accounts | $ | $ 2.2 | $ 2.1 |
Accounts Receivable | Customer Concentration Risk | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Concentration risk, customers | Customer | 10 | 10 |
Concentration risk, percent | 51.10% | 54.60% |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Sep. 29, 2019 | Dec. 30, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 184,271 | $ 189,145 |
Finished goods | 79,148 | 69,026 |
Provision for obsolete or aged inventory | (9,614) | (7,764) |
Inventories, net | $ 253,805 | $ 250,407 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Sep. 29, 2019 | Dec. 30, 2018 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 937,685 | $ 934,972 |
Accumulated depreciation | (344,460) | (325,219) |
Property, plant and equipment, net | 593,225 | 609,753 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 29,578 | 30,653 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 177,318 | 179,888 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 730,789 | $ 724,431 |
Property, Plant and Equipment_3
Property, Plant and Equipment (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation | $ 16,359 | $ 15,706 | $ 52,845 | $ 43,340 |
Leases Supplemental balance she
Leases Supplemental balance sheet information related to leases (Details) - USD ($) $ in Thousands | Sep. 29, 2019 | Dec. 30, 2018 |
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 137,918 | $ 0 |
Current portion of operating lease liabilities | 20,403 | 0 |
Long-term operating lease liabilities | 128,491 | $ 0 |
Total operating lease liability | $ 148,894 | |
Weighted average remaining lease term (years) | 15 years | |
Weighted average discount rate | 4.90% |
Leases Maturities of operating
Leases Maturities of operating lease liabilities (Details) $ in Thousands | Sep. 29, 2019USD ($) |
Operating Lease Liabilities, Payments Due [Abstract] | |
2019 (remaining three months) | $ 6,914 |
2020 | 27,178 |
2021 | 19,165 |
2022 | 15,497 |
2023 | 12,643 |
Thereafter | 148,010 |
Total undiscounted lease payments | 229,407 |
Less imputed interest | (80,513) |
Total | $ 148,894 |
Leases Narrative (Details)
Leases Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
Operating leases not yet commenced | ||||
Undiscounted commitment for operating leases | $ 15.8 | $ 15.8 | ||
Term of operating leases not yet commenced | 10 years | 10 years | ||
Operating lease expense | $ 10 | $ 7.9 | $ 29.7 | $ 23.4 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Schedule of Goodwill) (Details) $ in Thousands | 9 Months Ended |
Sep. 29, 2019USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, beginning | $ 180,297 |
Goodwill from 2019 acquisitions | 1,083 |
Measurement period adjustment | 400 |
Goodwill, ending | 180,066 |
Goodwill | 1,083 |
North American Residential | |
Goodwill [Roll Forward] | |
Goodwill, beginning | 6,189 |
Goodwill from 2019 acquisitions | 0 |
Measurement period adjustment | 390 |
Foreign exchange fluctuations | 7 |
Goodwill, ending | 6,586 |
Goodwill | 0 |
Europe | |
Goodwill [Roll Forward] | |
Goodwill, beginning | 63,220 |
Goodwill from 2019 acquisitions | 1,083 |
Measurement period adjustment | 0 |
Foreign exchange fluctuations | (1,786) |
Goodwill, ending | 62,517 |
Goodwill | 1,083 |
Architectural | |
Goodwill [Roll Forward] | |
Goodwill, beginning | 110,888 |
Goodwill from 2019 acquisitions | 0 |
Measurement period adjustment | 0 |
Foreign exchange fluctuations | 75 |
Goodwill, ending | 110,963 |
Goodwill | 0 |
Operating Segments | |
Goodwill [Roll Forward] | |
Goodwill, beginning | 180,297 |
Measurement period adjustment | 390 |
Foreign exchange fluctuations | (1,704) |
Goodwill, ending | $ 180,066 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets (Cost and Accumulated Amortized Values) (Details) - USD ($) $ in Thousands | Sep. 29, 2019 | Dec. 30, 2018 |
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | $ 270,269 | $ 272,415 |
Finite-lived intangible assets, accumulated amortization | (156,472) | (136,401) |
Finite-lived intangible assets, net | 113,797 | 136,014 |
Total intangible assets, gross | 346,325 | 348,446 |
Total intangible assets, net | 189,853 | 212,045 |
Customer Relationships | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 170,895 | 173,637 |
Finite-lived intangible assets, accumulated amortization | (94,623) | (81,220) |
Finite-lived intangible assets, net | 76,272 | 92,417 |
Patents | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 31,926 | 31,363 |
Finite-lived intangible assets, accumulated amortization | (23,338) | (21,840) |
Finite-lived intangible assets, net | 8,588 | 9,523 |
Software | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 33,541 | 32,660 |
Finite-lived intangible assets, accumulated amortization | (31,626) | (29,296) |
Finite-lived intangible assets, net | 1,915 | 3,364 |
Trademarks and trade names | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 32,938 | 33,784 |
Finite-lived intangible assets, accumulated amortization | (6,464) | (3,948) |
Finite-lived intangible assets, net | 26,474 | 29,836 |
Other | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 969 | 971 |
Finite-lived intangible assets, accumulated amortization | (421) | (97) |
Finite-lived intangible assets, net | 548 | 874 |
Trademarks and trade names | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, accumulated amortization | 0 | 0 |
Indefinite-lived intangible assets, gross | 76,056 | 76,031 |
Indefinite-lived intangible assets, net | $ 76,056 | $ 76,031 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Measurement period adjustment | $ 0.4 | |||
Amortization of intangible assets | $ 7 | $ 7 | $ 21.3 | $ 20.3 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets (Estimated Future Amortization of Intangible Assets) (Details) $ in Thousands | Sep. 29, 2019USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2019 (remaining three months) | $ 6,612 |
2020 | 22,050 |
2021 | 18,465 |
2022 | 15,031 |
2023 | $ 13,567 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | Sep. 29, 2019 | Dec. 30, 2018 |
Accrued Expenses [Abstract] | ||
Accrued payroll | $ 56,240 | $ 39,823 |
Accrued rebates | 38,645 | 36,711 |
Current portion of operating lease liabilities | 20,403 | 0 |
Accrued interest | 5,900 | 14,570 |
Other accruals | 50,981 | 56,241 |
Total accrued expenses | $ 172,169 | $ 147,345 |
Long-Term Debt (Details)
Long-Term Debt (Details) - USD ($) $ in Thousands | Aug. 10, 2019 | Jul. 25, 2019 | Aug. 27, 2018 | Apr. 01, 2018 | Apr. 03, 2016 | Sep. 29, 2019 | Sep. 30, 2018 | Dec. 30, 2018 | Sep. 27, 2017 | Mar. 23, 2015 |
Debt Instrument [Line Items] | ||||||||||
Other long-term debt | $ 1,019 | $ 1,108 | ||||||||
Total long-term debt | 790,692 | 796,398 | ||||||||
Proceeds from Issuance of Long-term Debt | 500,000 | $ 300,000 | ||||||||
Senior Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt issuance costs | (10,327) | (8,394) | ||||||||
Debt Issuance Costs, Net | 10,327 | 8,394 | ||||||||
Senior Notes | Senior Notes Due 2023 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term debt | 0 | 500,000 | ||||||||
Unamortized premium on 2023 Notes | $ 0 | 3,684 | $ 6,000 | |||||||
Debt issuance costs | (2,100) | $ (7,100) | ||||||||
Extinguishment of debt | $ 500,000 | $ 125,000 | ||||||||
Interest rate stated percentage | 5.625% | |||||||||
Proceeds from Issuance of Long-term Debt | $ 153,900 | $ 467,900 | ||||||||
Debt Issuance Costs, Net | $ 2,100 | $ 7,100 | ||||||||
Extinguishment of debt | $ 500,000 | 125,000 | ||||||||
Senior Notes | Senior Notes Due 2026 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term debt | $ 300,000 | 300,000 | ||||||||
Debt issuance costs | (4,300) | |||||||||
Interest rate stated percentage | 5.75% | |||||||||
Proceeds from Issuance of Long-term Debt | 295,700 | |||||||||
Debt Issuance Costs, Net | $ 4,300 | |||||||||
Senior Notes | Senior Notes Due 2028 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term debt | $ 500,000 | $ 0 | ||||||||
Debt issuance costs | $ (6,700) | |||||||||
Interest rate stated percentage | 5.375% | |||||||||
Proceeds from Issuance of Long-term Debt | 493,300 | |||||||||
Debt Issuance Costs, Net | $ 6,700 |
Long-Term Debt (Narrative) (Det
Long-Term Debt (Narrative) (Details) - USD ($) | Aug. 10, 2019 | Jul. 25, 2019 | Sep. 12, 2018 | Aug. 27, 2018 | Mar. 23, 2015 | Sep. 29, 2019 | Sep. 30, 2018 | Apr. 01, 2018 | Apr. 03, 2016 | Sep. 29, 2019 | Sep. 30, 2018 | Mar. 31, 2019 | Jan. 31, 2019 | Dec. 30, 2018 | Sep. 27, 2017 | Apr. 09, 2015 |
Debt Instrument [Line Items] | ||||||||||||||||
Debt issued, percent above par (percent) | 100.00% | |||||||||||||||
Proceeds from issuance of long-term debt | $ 500,000,000 | $ 300,000,000 | ||||||||||||||
Loss on extinguishment of debt | $ (14,523,000) | $ (5,414,000) | (14,523,000) | (5,414,000) | ||||||||||||
Senior Notes | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Interest expense | 12,000,000 | $ 10,000,000 | 34,800,000 | $ 27,700,000 | ||||||||||||
Debt issuance costs | $ (10,327,000) | $ (10,327,000) | $ (8,394,000) | |||||||||||||
Senior Notes | Senior Notes Due 2028 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Aggregate principal | $ 500,000,000 | |||||||||||||||
Interest rate stated percentage | 5.375% | 5.375% | ||||||||||||||
Proceeds from issuance of long-term debt | 493,300,000 | |||||||||||||||
Debt issuance costs | $ (6,700,000) | |||||||||||||||
Senior Notes | Senior Notes Due 2028 | Debt Instrument, Redemption, Period Three | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Redemption price, percentage | 101.00% | |||||||||||||||
Senior Notes | Senior Notes Due 2026 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Aggregate principal | $ 300,000,000 | |||||||||||||||
Interest rate stated percentage | 5.75% | 5.75% | ||||||||||||||
Proceeds from issuance of long-term debt | 295,700,000 | |||||||||||||||
Debt issuance costs | (4,300,000) | |||||||||||||||
Senior Notes | Senior Notes Due 2026 | Debt Instrument, Redemption, Period Three | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Redemption price, percentage | 101.00% | |||||||||||||||
Senior Notes | Senior Notes Due 2023 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Aggregate principal | $ 475,000,000 | $ 150,000,000 | ||||||||||||||
Interest rate stated percentage | 5.625% | 5.625% | ||||||||||||||
Debt issued, percent above par (percent) | 104.00% | |||||||||||||||
Unamortized premium on 2023 Notes | $ 0 | $ 0 | $ 3,684,000 | $ 6,000,000 | ||||||||||||
Write off of unamortized premium | $ 3,100,000 | $ 1,000,000 | ||||||||||||||
Write off of unamortized deferred issuance costs | 3,500,000 | 1,100,000 | ||||||||||||||
Proceeds from issuance of long-term debt | $ 153,900,000 | $ 467,900,000 | ||||||||||||||
Debt issuance costs | $ (7,100,000) | $ (2,100,000) | ||||||||||||||
Loss on extinguishment of debt | 14,500,000 | 5,400,000 | ||||||||||||||
Extinguishment of debt | 500,000,000 | $ 125,000,000 | ||||||||||||||
Premium paid on extinguishment of debt | $ 14,100,000 | $ 5,300,000 | ||||||||||||||
Senior Notes | Senior Notes Due 2021 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Interest rate stated percentage | 8.25% | |||||||||||||||
Extinguishment of debt | $ 500,000,000 | |||||||||||||||
Revolving Credit Facility | ABL Facility 2024 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Maximum borrowing capacity | $ 250,000,000 | |||||||||||||||
Maximum pro forma secured leverage ratio | 4.5 | |||||||||||||||
Revolving credit facilities | $ 0 | $ 0 | $ 0 | |||||||||||||
Revolving Credit Facility | ABL Facility 2020 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Maximum borrowing capacity | $ 150,000,000 | |||||||||||||||
Minimum | Revolving Credit Facility | ABL Facility 2024 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Unutilized commitment fee percentage | 0.25% | |||||||||||||||
Minimum | Revolving Credit Facility | ABL Facility 2024 | Base Rate | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Basis spread on variable rate | 0.25% | |||||||||||||||
Minimum | Revolving Credit Facility | ABL Facility 2024 | London Interbank Offered Rate (LIBOR) | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Basis spread on variable rate | 1.25% | |||||||||||||||
Maximum | Revolving Credit Facility | ABL Facility 2024 | Base Rate | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Basis spread on variable rate | 0.50% | |||||||||||||||
Maximum | Revolving Credit Facility | ABL Facility 2024 | London Interbank Offered Rate (LIBOR) | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Basis spread on variable rate | 1.50% |
Share Based Compensation Plan_2
Share Based Compensation Plans Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | Jul. 12, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation | $ 3,695 | $ 1,640 | $ 8,468 | $ 8,243 | |
Share based compensation unrecognized | 18,100 | $ 18,100 | |||
Weighted average remaining requisite service period | 1 year 8 months 12 days | ||||
Deferred compensation liability | 6,200 | $ 6,200 | |||
Deferred compensation asset | $ 6,300 | $ 6,300 | |||
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 | 669,118 | 669,118 | |||
Stock Appreciation Rights (SARs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Plan term | 10 years | ||||
Award vesting period | 3 years | ||||
Vested, fair value | $ 1,100 | ||||
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 | ||||
Average requisite service period | 2 years 3 months 18 days | ||||
Units vested | 135,847 | ||||
Fair value of shares vested | $ 8,400 | ||||
Service Requirement | Restricted Stock Units (RSUs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting percentage | 80.00% | ||||
Service and Performance Requirements | Restricted Stock Units (RSUs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting percentage | 20.00% |
Share Based Compensation Plan_3
Share Based Compensation Plans (SARs) (Details) - Stock Appreciation Rights (SARs) - USD ($) $ / shares in Units, $ in Thousands | Sep. 29, 2019 | Dec. 30, 2018 | Sep. 29, 2019 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Outstanding, beginning of period, shares | 514,313 | ||
Granted, shares | 111,230 | ||
Exercised, shares | (56,765) | ||
Forfeited, shares | 8,329 | ||
Outstanding, end of period, shares | 560,449 | 514,313 | 560,449 |
Exercisable, shares | 386,442 | 386,442 | |
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 | $ 7,254 | ||
Exercised, aggregate intrinsic value | 2,073 | ||
Outstanding, end period, aggregate intrinsic value | $ 8,961 | $ 7,254 | 8,961 |
Exercisable, aggregate intrinsic value | $ 8,921 | $ 8,921 | |
Outstanding, beginning of period, weighted average remaining contractual term | 3 years 9 months 18 days | 4 years 7 months 6 days | |
Outstanding, end of period, weighted average remaining contractual term | 3 years 9 months 18 days | 4 years 7 months 6 days | |
Exercisable, weighted average remaining contractual term | 2 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |||
Outstanding, beginning of period, weighted average exercise price | $ 39.01 | ||
Granted, weighted average exercise price | 57.29 | ||
Exercised, weighted average exercise price | 18.76 | ||
Forfeited, weighted average exercise price | 67.24 | ||
Outstanding, end of period, weighted average exercise price | $ 44.27 | $ 39.01 | 44.27 |
Exercisable, weighted average exercise price | $ 36.66 | $ 36.66 |
Share Based Compensation Plan_4
Share Based Compensation Plans (Weighted Average Grant Date Assumptions) (Details) - Stock Appreciation Rights (SARs) | 9 Months Ended |
Sep. 29, 2019$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
SAR Value (model conclusion) | $ 12.26 |
Risk-free rate | 2.20% |
Expected dividend yield | 0.00% |
Expected volatility | 21.90% |
Expected term (years) | 6 years |
Share Based Compensation Plan_5
Share Based Compensation Plans (RSUs) (Details) | 9 Months Ended |
Sep. 29, 2019$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
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 | $ / shares | $ 57.51 |
Restricted Stock Units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Outstanding, beginning of period (shares) | 429,027 |
Granted (shares) | 297,115 |
Performance adjustment (shares) | 21,953 |
Delivered (shares) | (115,520) |
Withheld to cover (shares) | (19,831) |
Forfeited (shares) | (33,897) |
Outstanding, end of period (shares) | 534,941 |
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) | $ / shares | $ 66.03 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | 56.02 |
Outstanding, end of period (weighted average grant date fair value) | $ / shares | $ 59.60 |
Restructuring Costs (Restructur
Restructuring Costs (Restructuring Costs by Plan) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | $ 1,994 | $ 0 | $ 7,095 | $ 0 |
Cumulative amount incurred to date | 20,419 | 20,419 | ||
2019 Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 1,327 | 5,012 | ||
Cumulative amount incurred to date | 5,012 | 5,012 | ||
2019 Plan | North American Residential | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 1,351 | 3,755 | ||
2019 Plan | Europe | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 0 | 336 | ||
2019 Plan | Architectural | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 32 | 518 | ||
2019 Plan | Corporate & Other | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | (56) | 403 | ||
2018 Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 667 | 2,083 | ||
Cumulative amount incurred to date | 3,707 | 3,707 | ||
2018 Plan | North American Residential | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 410 | 1,199 | ||
2018 Plan | Europe | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 257 | 884 | ||
2018 Plan | Architectural | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 0 | 0 | ||
2018 Plan | Corporate & Other | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 0 | 0 | ||
2016 Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Cumulative amount incurred to date | 3,707 | 3,707 | ||
2014 Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Cumulative amount incurred to date | 7,993 | 7,993 | ||
Operating Segments | North American Residential | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 1,761 | 4,954 | ||
Cumulative amount incurred to date | 5,229 | 5,229 | ||
Operating Segments | Europe | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 257 | 1,220 | ||
Cumulative amount incurred to date | 2,569 | 2,569 | ||
Operating Segments | Architectural | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 32 | 518 | ||
Cumulative amount incurred to date | 4,225 | 4,225 | ||
Operating Segments | Corporate & Other | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | (56) | 403 | ||
Cumulative amount incurred to date | 8,396 | 8,396 | ||
Operating Segments | 2019 Plan | North American Residential | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Cumulative amount incurred to date | 3,755 | 3,755 | ||
Operating Segments | 2019 Plan | Europe | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Cumulative amount incurred to date | 336 | 336 | ||
Operating Segments | 2019 Plan | Architectural | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Cumulative amount incurred to date | 518 | 518 | ||
Operating Segments | 2019 Plan | Corporate & Other | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Cumulative amount incurred to date | 403 | 403 | ||
Operating Segments | 2018 Plan | North American Residential | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Cumulative amount incurred to date | 1,474 | 1,474 | ||
Operating Segments | 2018 Plan | Europe | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Cumulative amount incurred to date | 2,233 | 2,233 | ||
Operating Segments | 2018 Plan | Architectural | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Cumulative amount incurred to date | 0 | 0 | ||
Operating Segments | 2018 Plan | Corporate & Other | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Cumulative amount incurred to date | 0 | 0 | ||
Operating Segments | 2016 Plan | North American Residential | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Cumulative amount incurred to date | 0 | 0 | ||
Operating Segments | 2016 Plan | Europe | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Cumulative amount incurred to date | 0 | 0 | ||
Operating Segments | 2016 Plan | Architectural | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Cumulative amount incurred to date | 3,707 | 3,707 | ||
Operating Segments | 2016 Plan | Corporate & Other | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Cumulative amount incurred to date | 0 | 0 | ||
Operating Segments | 2014 Plan | North American Residential | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Cumulative amount incurred to date | 0 | 0 | ||
Operating Segments | 2014 Plan | Europe | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Cumulative amount incurred to date | 0 | 0 | ||
Operating Segments | 2014 Plan | Architectural | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Cumulative amount incurred to date | 0 | 0 | ||
Operating Segments | 2014 Plan | Corporate & Other | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Cumulative amount incurred to date | $ 7,993 | $ 7,993 |
Restructuring Costs (Details)
Restructuring Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve, beginning balance | $ 654 | $ 284 | ||
Restructuring charges | $ 1,994 | $ 0 | 7,095 | 0 |
Cash payments | (6,896) | (203) | ||
Restructuring reserve, ending balance | 853 | 81 | 853 | 81 |
Severance | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring charges | 5,191 | |||
Facility Closing | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring charges | 1,904 | |||
2019 Plan | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve, beginning balance | 0 | |||
Restructuring charges | 1,327 | 5,012 | ||
Cash payments | (4,185) | |||
Restructuring reserve, ending balance | 827 | 827 | ||
2019 Plan | Severance | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring charges | 3,393 | |||
2019 Plan | Facility Closing | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring charges | 1,619 | |||
2018 Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and Related Cost, Expected Cost Remaining | 1,000 | 1,000 | ||
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve, beginning balance | 596 | |||
Restructuring charges | 667 | 2,083 | ||
Cash payments | (2,653) | |||
Restructuring reserve, ending balance | 26 | 26 | ||
2018 Plan | Severance | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring charges | 1,798 | |||
2018 Plan | Facility Closing | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring charges | 285 | |||
2016 Plan | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve, beginning balance | 90 | |||
Cash payments | (90) | |||
Restructuring reserve, ending balance | 0 | 0 | ||
Other | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve, beginning balance | 58 | 194 | ||
Cash payments | (58) | (113) | ||
Restructuring reserve, ending balance | 0 | $ 81 | 0 | $ 81 |
Other | Severance | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring charges | 0 | |||
Other | Facility Closing | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring charges | 0 | |||
Minimum | 2019 Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and Related Cost, Expected Cost Remaining | 8,000 | 8,000 | ||
Maximum | 2019 Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and Related Cost, Expected Cost Remaining | $ 10,000 | $ 10,000 |
Asset Impairment (Details)
Asset Impairment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Asset impairment | $ 0 | $ 0 | $ 13,767 | $ 0 |
Book value of asset group | $ 23,200 | 23,200 | ||
Level 3 | Nonrecurring | ||||
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 | $ 9,400 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |||
Canadian federal statutory rate | 26.40% | ||
Income tax benefit due to the exercise and delivery of share-based awards | $ 0.8 | $ 0.1 | $ 1.1 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 29, 2019 | Dec. 30, 2018 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Net income attributable to Masonite | $ 14,969 | $ 24,796 | $ 43,000 | $ 80,363 | |
Shares used in computing basic earnings per share | 24,944,126 | 27,477,430 | 25,215,034 | 27,758,784 | |
Effect of dilutive securities: | |||||
Incremental shares issuable under share compensation plans | 299,554 | 434,510 | 306,663 | 475,279 | |
Shares used in computing diluted earnings per share | 25,243,680 | 27,911,940 | 25,521,697 | 28,234,063 | |
Basic earnings per common share attributable to Masonite (in dollars per share) | $ 0.60 | $ 0.90 | $ 1.71 | $ 2.90 | |
Diluted earnings per common share attributable to Masonite (in dollars per share) | $ 0.59 | $ 0.89 | $ 1.68 | $ 2.85 | |
Stock Appreciation Rights (SARs) | |||||
Effect of dilutive securities: | |||||
Anti-dilutive instruments excluded from diluted earnings per common share | 283,966 | 51,129 | 292,295 | 51,129 | |
Restricted Stock Units (RSUs) | |||||
Effect of dilutive securities: | |||||
Anti-dilutive instruments excluded from diluted earnings per common share | 0 | 0 | 3,584 | 0 |
Segment Information (Geographic
Segment Information (Geographic Segments Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | $ 552,192 | $ 557,148 | $ 1,645,446 | $ 1,641,753 |
Adjusted EBITDA | 75,844 | 70,761 | 221,056 | 210,461 |
Operating Segments | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | 557,441 | 562,804 | 1,660,274 | 1,660,280 |
Intersegment Eliminations | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | (5,249) | (5,656) | (14,828) | (18,527) |
North American Residential | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | 373,911 | 368,262 | 1,107,246 | 1,105,808 |
Adjusted EBITDA | 61,549 | 53,414 | 178,571 | 162,775 |
North American Residential | Operating Segments | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | 374,612 | 369,491 | 1,109,919 | 1,108,969 |
North American Residential | Intersegment Eliminations | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | (701) | (1,229) | (2,673) | (3,161) |
Europe | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | 75,965 | 91,226 | 241,185 | 279,076 |
Adjusted EBITDA | 10,645 | 10,678 | 34,050 | 34,250 |
Europe | Operating Segments | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | 76,308 | 91,588 | 242,408 | 280,729 |
Europe | Intersegment Eliminations | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | (343) | (362) | (1,223) | (1,653) |
Architectural | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | 96,502 | 92,051 | 279,274 | 240,519 |
Adjusted EBITDA | 13,920 | 11,228 | 34,312 | 30,886 |
Architectural | Operating Segments | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | 100,707 | 96,116 | 290,206 | 254,232 |
Architectural | Intersegment Eliminations | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | (4,205) | (4,065) | (10,932) | (13,713) |
Corporate & Other | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | 5,814 | 5,609 | 17,741 | 16,350 |
Adjusted EBITDA | (10,270) | (4,559) | (25,877) | (17,450) |
Corporate & Other | Operating Segments | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | 5,814 | 5,609 | 17,741 | 16,350 |
Corporate & Other | Intersegment Eliminations | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | $ 0 | $ 0 | $ 0 | $ 0 |
Segment Information (Reconcilia
Segment Information (Reconciliation of Consolidated Adjusted EBITDA to Net Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
Segment Reporting [Abstract] | ||||
Adjusted EBITDA | $ 75,844 | $ 70,761 | $ 221,056 | $ 210,461 |
Depreciation | 16,359 | 15,706 | 52,845 | 43,340 |
Amortization | 7,054 | 7,041 | 21,980 | 20,951 |
Share based compensation expense | 3,695 | 1,640 | 8,468 | 8,243 |
Loss on disposal of property, plant and equipment | 705 | 62 | 4,940 | 2,574 |
Restructuring costs | 1,994 | 0 | 7,095 | 0 |
Asset impairment | 0 | 0 | 13,767 | 0 |
Loss on disposal of subsidiaries | 0 | 0 | 4,605 | 0 |
Interest expense, net | 11,909 | 10,151 | 34,393 | 27,981 |
Loss on extinguishment of debt | 14,523 | 5,414 | 14,523 | 5,414 |
Other income, net of expense | (824) | (948) | (2,410) | (1,809) |
Income tax expense | 4,334 | 6,151 | 14,685 | 20,746 |
Net income attributable to non-controlling interest | 1,126 | 748 | 3,165 | 2,658 |
Net income attributable to Masonite | $ 14,969 | $ 24,796 | $ 43,000 | $ 80,363 |
Other Comprehensive Income an_3
Other Comprehensive Income and Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | Dec. 30, 2018 | |
Accumulated Foreign Currency Translation Gains (Losses) [Roll Forward] | |||||
Accumulated foreign currency translation gains (losses), beginning of period | $ (121,440) | $ (114,926) | $ (129,930) | $ (89,824) | |
Foreign currency translation gain (loss) | (12,733) | 2,484 | (4,921) | (23,187) | |
Income tax benefit (expense) on foreign currency translation gain (loss) | (10) | 15 | 15 | (28) | |
Cumulative translation adjustment recognized upon deconsolidation of subsidiary | 0 | 0 | (1,001) | 0 | |
Less: foreign currency translation gain (loss) attributable to non-controlling interest | (122) | 242 | 226 | (370) | |
Accumulated foreign currency translation gains (losses), end of period | (134,061) | (112,669) | (134,061) | (112,669) | |
Accumulated Amortization of Actuarial Net Losses [Roll Forward] | |||||
Accumulated pension and other post-retirement adjustments, beginning of period | (22,392) | (19,886) | (22,989) | (20,328) | |
Amortization of actuarial net losses | 404 | 300 | 1,211 | 899 | |
Income tax expense on amortization of actuarial net losses | (104) | (78) | (314) | (235) | |
Accumulated pension and other post-retirement adjustments | (22,092) | (19,664) | (22,092) | (19,664) | |
Accumulated other comprehensive loss | (156,153) | (132,333) | (156,153) | (132,333) | $ (152,919) |
Other comprehensive income (loss), net of tax | (12,443) | 2,721 | (3,008) | (22,551) | |
Less: other comprehensive income (loss) attributable to non-controlling interest | (122) | 242 | 226 | (370) | |
Other comprehensive income (loss) attributable to Masonite | $ (12,321) | $ 2,479 | $ (3,234) | $ (22,181) |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 29, 2019 | Sep. 30, 2018 | Dec. 30, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |||
Property, Plant and Equipment, Additions | $ 5,000 | $ 8,700 | |
Transactions involving cash: | |||
Interest paid | 44,230 | $ 35,653 | |
Interest received | 2,058 | 621 | |
Income taxes paid | 10,731 | 5,957 | |
Income tax refunds | 69 | 81 | |
Cash paid for operating lease liabilities | 19,636 | 0 | |
Non-cash transactions: | |||
Right-of-use assets acquired in under operating leases | $ 49,932 | $ 0 |
Supplemental Cash Flow Inform_4
Supplemental Cash Flow Information Cash, cash equivalents and restricted cash (Details) - USD ($) $ in Thousands | Sep. 29, 2019 | Dec. 30, 2018 | Sep. 30, 2018 | Dec. 31, 2017 |
Supplemental Cash Flow Elements [Abstract] | ||||
Cash and cash equivalents | $ 109,955 | $ 115,656 | ||
Restricted cash | 10,645 | 10,485 | ||
Total cash, cash equivalents and restricted cash | $ 120,600 | $ 126,141 | $ 203,328 | $ 188,564 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details) - Senior Notes - Fair Value, Inputs, Level 2 - USD ($) $ in Millions | Sep. 29, 2019 | Dec. 30, 2018 |
Senior Notes Due 2028 | Estimate of Fair Value Measurement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Estimated fair value of senior notes | $ 521.1 | $ 0 |
Senior Notes Due 2028 | Reported Value Measurement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Estimated fair value of senior notes | 493.5 | 0 |
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 | 317.3 | 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 | 296.2 | 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 | 0 | 484.9 |
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 | $ 0 | $ 499.5 |