Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 27, 2020 | Oct. 30, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 27, 2020 | |
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 | 24,502,967 | |
Entity Central Index Key | 0000893691 | |
Current Fiscal Year End Date | --01-03 | |
Document Fiscal Year Focus | 2020 | |
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. 27, 2020 | Sep. 29, 2019 | Sep. 27, 2020 | Sep. 29, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net sales | $ 587,652 | $ 552,192 | $ 1,638,538 | $ 1,645,446 |
Cost of goods sold | 427,331 | 426,588 | 1,207,582 | 1,278,808 |
Gross profit | 160,321 | 125,604 | 430,956 | 366,638 |
Selling, general and administration expenses | 118,354 | 77,573 | 272,077 | 233,815 |
Restructuring costs | 1,895 | 1,994 | 4,984 | 7,095 |
Asset impairment | 51,515 | 0 | 51,515 | 13,767 |
Loss on disposal of subsidiaries | 0 | 0 | 2,091 | 4,605 |
Operating income (loss) | (11,443) | 46,037 | 100,289 | 107,356 |
Interest expense, net | 11,805 | 11,909 | 34,911 | 34,393 |
Loss on extinguishment of debt | 0 | (14,523) | 0 | (14,523) |
Other expense (income), net | (1,953) | (824) | (3,350) | (2,410) |
Income (loss) before income tax expense | (21,295) | 20,429 | 68,728 | 60,850 |
Income tax expense (benefit) | (804) | 4,334 | 23,522 | 14,685 |
Net income (loss) | (20,491) | 16,095 | 45,206 | 46,165 |
Less: net income attributable to non-controlling interests | 1,275 | 1,126 | 3,090 | 3,165 |
Net income attributable to Masonite | $ (21,766) | $ 14,969 | $ 42,116 | $ 43,000 |
Basic earnings per common share attributable to Masonite (in dollars per share) | $ (0.89) | $ 0.60 | $ 1.71 | $ 1.71 |
Diluted earnings per common share attributable to Masonite (in dollars per share) | $ (0.89) | $ 0.59 | $ 1.69 | $ 1.68 |
Other comprehensive income (loss): | ||||
Net income | $ (20,491) | $ 16,095 | $ 45,206 | $ 46,165 |
Foreign currency translation gain (loss) | 14,137 | (12,733) | (9,818) | (3,920) |
Amortization of actuarial net losses | 173 | 404 | 518 | 1,211 |
Income tax (expense) benefit related to other comprehensive income (loss) | (25) | (114) | (142) | (299) |
Other comprehensive income (loss), net of tax | 14,285 | (12,443) | (9,442) | (3,008) |
Comprehensive income (loss) | (6,206) | 3,652 | 35,764 | 43,157 |
Less: comprehensive income (loss) attributable to non-controlling interests | 1,481 | 1,004 | 2,947 | 3,391 |
Comprehensive income (loss) attributable to Masonite | $ (7,687) | $ 2,648 | $ 32,817 | $ 39,766 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 27, 2020 | Dec. 29, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 300,797 | $ 166,964 |
Restricted cash | 10,560 | 10,644 |
Accounts receivable, net | 321,504 | 276,208 |
Inventories, net | 243,150 | 242,230 |
Prepaid expenses | 29,965 | 33,190 |
Income taxes receivable | 2,360 | 4,819 |
Total current assets | 908,336 | 734,055 |
Property, plant and equipment, net | 609,490 | 625,585 |
Operating lease right-of-use assets | 127,506 | 121,367 |
Investment in equity investees | 13,797 | 16,100 |
Goodwill | 131,827 | 184,192 |
Intangible assets, net | 167,631 | 184,532 |
Deferred income taxes | 19,455 | 25,945 |
Other assets | 49,034 | 44,808 |
Total assets | 2,027,076 | 1,936,584 |
Current liabilities: | ||
Accounts payable | 95,231 | 84,912 |
Accrued expenses | 235,006 | 180,405 |
Income taxes payable | 11,795 | 2,350 |
Total current liabilities | 342,032 | 267,667 |
Long-term debt | 791,882 | 790,984 |
Long-term operating lease liabilities | 118,354 | 110,497 |
Deferred income taxes | 74,389 | 83,465 |
Other liabilities | 54,917 | 47,109 |
Total liabilities | 1,381,574 | 1,299,722 |
Commitments and Contingencies (Note 7) | ||
Equity: | ||
Share capital: unlimited shares authorized, no par value, 24,502,967 and 24,869,921 shares issued and outstanding as of September 27, 2020, and December 29, 2019, respectively | 554,673 | 558,514 |
Additional paid-in capital | 219,307 | 216,584 |
Accumulated earnings (deficit) | 28 | (20,047) |
Accumulated other comprehensive loss | (139,468) | (130,169) |
Total equity attributable to Masonite | 634,540 | 624,882 |
Equity attributable to non-controlling interests | 10,962 | 11,980 |
Total equity | 645,502 | 636,862 |
Total liabilities and equity | $ 2,027,076 | $ 1,936,584 |
Shares outstanding | 24,502,967 | 24,869,921 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - shares | Sep. 27, 2020 | Dec. 29, 2019 |
Statement of Financial Position [Abstract] | ||
Shares issued | 24,502,967 | 24,869,921 |
Shares outstanding | 24,502,967 | 24,869,921 |
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. 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 | |||||
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 | |||||
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 | |||||
Opening Balance, Value at Dec. 29, 2019 | 636,862 | $ 558,514 | 216,584 | (20,047) | (130,169) | 11,980 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common shares issued for delivery of share based awards, Value | 7,583 | (7,583) | ||||
Common shares issued under employee stock purchase plan, value | 1,305 | (451) | ||||
Common shares repurchased and retired, Value | (12,729) | (22,041) | ||||
Share based compensation expense | 13,509 | |||||
Common shares withheld to cover income taxes payable due to delivery of share based awards | (2,752) | |||||
Net income | 45,206 | 42,116 | 3,090 | |||
Other comprehensive income (loss), net of tax | (9,442) | (9,299) | (143) | |||
Dividends to noncontrolling interests | (3,965) | |||||
Ending Balance, Value at Sep. 27, 2020 | $ 645,502 | $ 554,673 | 219,307 | 28 | (139,468) | 10,962 |
Opening Balance, Shares at Dec. 29, 2019 | 24,869,921 | 24,869,921 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common shares issued for delivery of share based awards, Shares | 183,812 | |||||
Common shares issued under employee stock purchase plan | 16,505 | |||||
Common shares repurchased and retired, Shares | (567,271) | |||||
Ending Balance, Shares at Sep. 27, 2020 | 24,502,967 | 24,502,967 | ||||
Opening Balance, Value at Jun. 28, 2020 | $ 646,245 | $ 553,766 | 213,814 | 21,794 | (153,547) | 10,418 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common shares issued for delivery of share based awards, Value | 310 | (310) | ||||
Common shares issued under employee stock purchase plan, value | 597 | (140) | ||||
Common shares repurchased and retired, Value | 0 | 0 | ||||
Share based compensation expense | 6,299 | |||||
Common shares withheld to cover income taxes payable due to delivery of share based awards | (356) | |||||
Net income | (20,491) | (21,766) | 1,275 | |||
Other comprehensive income (loss), net of tax | 14,285 | 14,079 | 206 | |||
Dividends to noncontrolling interests | (937) | |||||
Ending Balance, Value at Sep. 27, 2020 | $ 645,502 | $ 554,673 | $ 219,307 | $ 28 | $ (139,468) | $ 10,962 |
Opening Balance, Shares at Jun. 28, 2020 | 24,487,121 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common shares issued for delivery of share based awards, Shares | 8,767 | |||||
Common shares issued under employee stock purchase plan | 7,079 | |||||
Common shares repurchased and retired, Shares | 0 | |||||
Ending Balance, Shares at Sep. 27, 2020 | 24,502,967 | 24,502,967 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 27, 2020 | Sep. 29, 2019 | |
Cash flows from operating activities: | ||
Net income | $ 45,206 | $ 46,165 |
Adjustments to reconcile net income to net cash flow provided by operating activities: | ||
Loss on disposal of subsidiaries | 2,091 | 4,605 |
Loss on extinguishment of debt | 0 | 14,523 |
Depreciation | 50,742 | 52,845 |
Amortization | 17,900 | 21,980 |
Share based compensation expense | 13,509 | 8,468 |
Deferred income taxes | (2,806) | 4,914 |
Unrealized foreign exchange loss (gain) | (83) | 539 |
Share of income from equity investees, net of tax | (1,972) | (2,479) |
Dividend from equity investee | 4,275 | 0 |
Pension and post-retirement funding, net of expense | (3,447) | (5,789) |
Non-cash accruals and interest | 1,268 | (309) |
Loss on sale of property, plant and equipment | 3,629 | 4,940 |
Asset impairment | 51,515 | 13,767 |
Accounts receivable | (51,071) | (28,921) |
Inventories | (3,950) | (6,038) |
Prepaid expenses | 2,823 | 677 |
Accounts payable and accrued expenses | 69,865 | 12,105 |
Other assets and liabilities | 19,762 | (3,623) |
Net cash flow provided by operating activities | 219,256 | 138,369 |
Cash flows from investing activities: | ||
Additions to property, plant and equipment | (45,899) | (55,573) |
Acquisition of businesses, net of cash acquired | (1,912) | (1,858) |
Proceeds from sale of subsidiaries, net of cash disposed | 0 | (230) |
Proceeds from sale of property, plant and equipment | 5,086 | 91 |
Other investing activities | (1,762) | (1,485) |
Net cash flow used in investing activities | (44,487) | (59,055) |
Cash flows from financing activities: | ||
Proceeds from issuance of long-term debt | 0 | 500,000 |
Repayments of long-term debt | (57) | (500,115) |
Payment of debt extinguishment costs | 0 | (14,065) |
Payments of Debt Issuance Costs | 0 | (6,701) |
Tax witholding on share based awards | (2,752) | (1,454) |
Distributions to non-controlling interests | (3,965) | (3,335) |
Repurchases of common shares | (34,770) | (58,383) |
Net cash flow used in financing activities | (41,544) | (84,053) |
Net foreign currency translation adjustment on cash | 524 | (802) |
Increase (decrease) in cash, cash equivalents and restricted cash | 133,749 | (5,541) |
Cash, cash equivalents and restricted cash, beginning of period | 177,608 | 126,141 |
Cash, cash equivalents and restricted cash, at end of period | $ 311,357 | $ 120,600 |
Business Overview and Significa
Business Overview and Significant Accounting Policies | 9 Months Ended |
Sep. 27, 2020 | |
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 62 manufacturing and distribution facilities in eight countries and sells doors to customers throughout the world with our largest markets being 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 29, 2019, as filed with the SEC. Our fiscal year is the 52- or 53-week period ending on the Sunday closest to December 31. In a 52-week year, each fiscal quarter consists of 13 weeks. For ease of disclosure, the 13-week periods are referred to as three-month periods. Our 2020 fiscal year, which ends on January 3, 2021, will contain 53 weeks of operating results, with the additional week occurring in the fourth quarter. 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 2019 audited consolidated financial statements, other than as noted below. Adoption of Recent Accounting Pronouncements In June 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2016-13, “Financial Instruments—Credit Losses (Topic 326)”, which replaced the incurred loss methodology for recognizing credit losses with a current expected credit losses model. This standard applied to most financial assets, including trade receivables. Our prior accounts receivable policy is described in detail in our Annual Report on Form 10-K for the year ended December 29, 2019. We adopted the new guidance using a modified retrospective approach as of December 30, 2019, the beginning of fiscal year 2020, and the adoption did not have a material impact on our financial statements and no adjustment was necessary to retained earnings on December 30, 2019. The adoption of the standard resulted in a change in accounting policy for accounts receivable. Our new accounting policy for accounts receivable is presented below. Accounts Receivable We record accounts receivable as our products are received by our customers. Our customers are primarily retailers, distributors and contractors. We record an allowance for credit losses at the time that accounts receivable are initially recorded based on our historical write-off experience and the current economic environment as well as our expectations of future economic conditions. We reassess the allowance at each reporting date. When it becomes apparent, based on age or customer circumstances, that such amounts will not be collected, they are charged to the allowance. Payments subsequently received are credited to the credit loss expense account included within selling, general and administration expenses in the consolidated statements of comprehensive income (loss). Generally, we do not require collateral for our accounts receivable. Other Recent Accounting Pronouncements not yet Adopted In December 2019, the FASB issued ASU 2019-12, "Simplifying the Accounting for Income Taxes," as part of its Simplification Initiative to reduce the cost and complexity in accounting for income taxes. This standard removes certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. It also amends other aspects of the guidance to help simplify and promote consistent application of GAAP. The guidance is effective for interim and annual periods beginning after December 15, 2020, with early adoption permitted. We are in the process of evaluating this guidance to determine the impact it may have on our financial statements. 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. |
Acquisitions and Divestitures
Acquisitions and Divestitures | 9 Months Ended |
Sep. 27, 2020 | |
Business Combinations [Abstract] | |
Acquisitions and Disposition | Acquisitions and Divestitures Acquisitions On August 31, 2020, we acquired intellectual property and other assets related to an interior door technology for cash consideration of $1.9 million. The purchase price allocation, net sales, net income (loss) attributable to Masonite and pro forma information for the acquisition are not presented as they were not material for any period presented. On August 29, 2019, we completed the acquisition of TOPDOORS, s.r.o. ("Top Doors") based in the Czech Republic for cash consideration of $1.8 million, net of cash acquired. Top Doors is a specialist manufacturer of door frames. The $1.1 million excess purchase price over the fair value of net assets acquired was allocated to goodwill in our Europe segment. 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. Divestitures During the second quarter of 2020, we completed the liquidation of our legal entity in India. As a result, we recognized $2.1 million in loss on disposal of subsidiaries. The total charge consists of $2.3 million relating to the recognition of cumulative translation adjustment out of accumulated other comprehensive loss and $0.2 million relating to the write-off of net assets and other professional fees. On December 13, 2019, we completed the sale of all of the capital stock of Window Widgets Limited ("WW") for consideration of $1.2 million, net of cash disposed. We have had no continuing involvement with WW subsequent to the sale. The divestiture of this business resulted in a loss on disposal of subsidiaries of $9.7 million, which was recognized in the fourth quarter of 2019 in the Europe segment. The total charge consists of $8.3 million relating to the write-off of the assets sold and other professional fees and $1.4 million relating to the recognition of the cumulative translation adjustment out of accumulated other comprehensive loss. 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 no continuing involvement with PDS subsequent to the sale, and the purchasers are not considered to be a related party. The divestiture of this business resulted in a loss on disposal of subsidiaries of $4.6 million, which was recognized in the first quarter of 2019 in the Europe segment. The total charge |
Accounts Receivable
Accounts Receivable | 9 Months Ended |
Sep. 27, 2020 | |
Receivables [Abstract] | |
Accounts Receivable | Accounts Receivable Our customers consist mainly of retailers, distributors and contractors. Our ten largest customers accounted for 55.9% and 44.9% of total accounts receivable as of September 27, 2020, and December 29, 2019, respectively. Our largest customer, The Home Depot, Inc., accounted for more than 10% of the consolidated gross accounts receivable balance as of September 27, 2020, and December 29, 2019. The allowance for doubtful accounts balance was $2.4 million and $1.8 million as of September 27, 2020, and December 29, 2019, 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 who assumes the full risk of collection, without recourse to us in the event of a loss. Transfers of receivables under this program are accounted for as sales. Proceeds from the transfers reflect the face value of the accounts receivable less a discount. Receivables sold under the AR Sales Program are excluded from trade accounts receivable in the 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, if any, under the AR Sales Program were not material for any of the periods presented and were recorded in selling, general and administration expense within the condensed consolidated statements of comprehensive income (loss). |
Inventories
Inventories | 9 Months Ended |
Sep. 27, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories The amounts of inventory on hand were as follows as of the dates indicated: (In thousands) September 27, 2020 December 29, 2019 Raw materials $ 175,610 $ 179,155 Finished goods 74,490 70,211 Provision for obsolete or aged inventory (6,950) (7,136) Inventories, net $ 243,150 $ 242,230 |
Accrued Expenses
Accrued Expenses | 9 Months Ended |
Sep. 27, 2020 | |
Accrued Expenses [Abstract] | |
Accrued expenses | Accrued Expenses The details of our accrued expenses were as follows as of the dates indicated: (In thousands) September 27, 2020 December 29, 2019 Accrued payroll $ 68,177 $ 60,876 Accrued rebates 49,712 33,556 Current portion of operating lease liabilities 22,296 20,980 Accrued interest 5,391 16,913 Accrued legal settlement 37,750 — Other accruals 51,680 48,080 Total accrued expenses $ 235,006 $ 180,405 |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Sep. 27, 2020 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt (In thousands) September 27, 2020 December 29, 2019 5.375% senior unsecured notes due 2028 $ 500,000 $ 500,000 5.750% senior unsecured notes due 2026 300,000 300,000 Debt issuance costs (9,018) (9,985) Other long-term debt 900 969 Total long-term debt $ 791,882 $ 790,984 Interest expense related to our consolidated indebtedness under senior unsecured notes was $11.4 million and $34.1 million for the three and nine months ended September 27, 2020, respectively, and $12.0 million and $34.8 million for the three and nine months ended September 29, 2019, 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 bear interest at 5.375%, 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. 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 similar senior unsecured notes, including the payment of related premiums, fees and expenses. Information concerning obligations under the 2028 Notes and the indenture governing them are described in detail in our Annual Report on Form 10-K for the year ended December 29, 2019. As of September 27, 2020, we were in compliance with all covenants under the indenture governing the 2028 Notes. 5.750% Senior Notes due 2026 On August 27, 2018, we issued $300.0 million aggregate principal senior unsecured notes (the "2026 Notes"). The 2026 Notes bear interest at 5.750% 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. Information concerning obligations under the 2026 Notes and the indenture governing them are described in detail in our Annual Report on Form 10-K for the year ended December 29, 2019. As of September 27, 2020, we were in compliance with all covenants under the indenture governing the 2026 Notes. ABL Facility On January 31, 2019, we and certain of our subsidiaries entered into a $250.0 million asset-based revolving credit facility (the "ABL Facility") maturing on January 31, 2024, which replaced the previous facility. Borrowings under the ABL Facility bear interest at a rate equal to, at our option, (i) the United States, Canadian or United Kingdom 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 by us and covenants that are described in detail in our Annual Report on Form 10-K for the year ended December 29, 2019. As of September 27, 2020, we were in compliance with all covenants under the credit agreement governing the ABL Facility. We had availability of $205.6 million under our ABL Facility and there were no amounts outstanding as of September 27, 2020. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 27, 2020 | |
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 29, 2019. Refer to Note 10. Commitments and Contingencies in the consolidated financial statements in our Annual Report on Form 10-K for the year ended December 29, 2019, for a full description of the previously disclosed legal proceedings. Class Action Proceedings - United States With respect to the putative antitrust class action cases pending in the Eastern District of Virginia, on August 31, 2020, the Company, and its co-defendant JELD-WEN, Inc., entered into a settlement agreement with the named plaintiffs representing a class of direct purchasers of interior molded and pre-hung doors included in In re: Interior Molded Doors Direct Purchaser Antitrust Litigation , a consolidated antitrust class action pending in the United States District Court for the Eastern District of Virginia (the “Court”). As part of the direct purchaser settlement, each defendant has agreed to make a payment of $28.0 million to the named plaintiffs and the settlement class in exchange for a full release of claims through the date of preliminary Court approval. Also, on September 4, 2020, the Company and its co-defendant, JELD-WEN, Inc., entered into a settlement agreement with the named plaintiffs representing a class of indirect purchasers of interior molded and pre-hung doors included in In re: Interior Molded Doors Indirect Purchaser Antitrust Litigation . As part of the indirect purchaser settlement, each defendant has agreed to make a payment of $9.75 million to the named plaintiffs and the settlement class in exchange for a full release of claims through the date of execution of the settlement agreement. Both settlements received preliminary Court approval on October 8, 2020, and are subject to final Court approval and other conditions set forth in the respective settlement agreements. In the settlement agreements the Company denied any wrongdoing. During the three months ended September 27, 2020, we recorded a legal reserve of $37.75 million in selling, general and administration expenses within the condensed consolidated statements of comprehensive income (loss). Class Action Proceedings - Canada In addition, on May 19, 2020, an intended class proceeding was commenced in the Province of Québec, Canada naming as defendants Masonite Corporation, Corporation Internationale Masonite, JELD-WEN, Inc., JELD-WEN Holding, Inc. and JELD-WEN of Canada, Ltd. The intended class proceeding seeks damages, punitive damages, and other relief. The plaintiff alleges that the Masonite and JELD-WEN defendants engaged in anticompetitive conduct, including price-fixing involving interior molded doors. This proceeding is at a very early stage and has not been certified. We have not recognized an expense related to damages in connection with this matter because, although an adverse outcome is reasonably possible, the amount or range of any potential loss cannot be reasonably estimated. Also, on October 2, 2020, an intended class proceeding was commenced in the Federal Court of Canada naming as defendants Masonite International Corporation, Masonite Corporation, JELD-WEN, Inc., JELD-WEN Holding, Inc. and JELD-WEN of Canada, Ltd. The intended class proceeding seeks damages, punitive damages, and other relief. The plaintiff alleges that the Masonite and JELD-WEN defendants engaged in anticompetitive conduct, including price-fixing involving interior molded doors. This proceeding is at a very early stage and has not been certified. We have not recognized an expense related to damages in connection with this matter because, although an adverse outcome is reasonably possible, the amount or range of any potential loss cannot be reasonably estimated. While we intend to defend against these claims vigorously, there can be no assurance that the ultimate resolution of this litigation will not have a material, adverse effect on our consolidated financial condition or results of operations. General In addition to the above, 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 adverse effect on our financial condition, results of operations or cash flows. |
Share Based Compensation Plans
Share Based Compensation Plans | 9 Months Ended |
Sep. 27, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share Based Compensation Plans | Share Based Compensation Plans Share based compensation expense was $6.3 million and $13.5 million for the three and nine months ended September 27, 2020, respectively, and $3.7 million and $8.5 million for the three and nine months ended September 29, 2019, respectively. As of September 27, 2020, the total remaining unrecognized compensation expense related to share based compensation amounted to $18.7 million, which will be amortized over the weighted average remaining requisite service period of 1.6 years. 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 29, 2019. 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 27, 2020, there were 728,990 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 further described in our Annual Report on Form 10-K for the year ended December 29, 2019. As of September 27, 2020, the liability and asset relating to deferred compensation had a fair value of $6.4 million and $6.2 million, respectively. As of September 27, 2020, participation in the deferred compensation plan is limited and no restricted stock awards have been deferred into the deferred compensation plan. All plan investments are categorized as having Level 1 valuation inputs as established by the FASB’s Fair Value Framework. Stock Appreciation Rights We have granted Stock Appreciation Rights ("SARs") to certain employees under both the 2009 Plan and the 2012 Plan, which entitle the recipient to the appreciation in value of a number of common shares over the exercise price over a period of time, each as specified in the applicable award agreement. The exercise price of any SAR granted may not be less than the fair market value of our common shares on the date of grant. The compensation expense for the SARs is measured based on the fair value of the SARs at the date of grant and is recognized over the requisite service period. The SARs vest over a maximum of three years, have a life of ten years and settle in common shares. It is assumed that all time-based SARs will vest. We recognize forfeitures of SARs in the period in which they occur. The total fair value of SARs vested was $1.0 million during the nine months ended September 27, 2020. Nine Months Ended September 27, 2020 Stock Appreciation Rights Aggregate Intrinsic Value (in thousands) Weighted Average Exercise Price Average Remaining Contractual Life (Years) Outstanding, beginning of period 404,447 $ 7,615 $ 53.62 4.7 Granted 32,435 83.39 Exercised (143,624) 4,454 43.24 Forfeited (15,538) 62.78 Outstanding, end of period 277,720 $ 8,346 $ 61.96 6.6 Exercisable, end of period 161,052 $ 5,240 $ 59.48 5.2 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 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: 2020 Grants SAR value (model conclusion) $ 20.56 Risk-free rate 1.2 % Expected dividend yield 0.0 % Expected volatility 22.6 % Expected term (years) 6.0 Restricted Stock Units We have granted Restricted Stock Units ("RSUs") to directors and certain employees under both the 2009 Plan and the 2012 Plan. The RSUs confer the right to receive shares of our common stock at a specified future date or when certain conditions are met. The compensation expense for the RSUs awarded is based on the fair value of the RSUs at the date of grant and is recognized over the requisite service period. The RSUs vest over a maximum of three years and call for the underlying shares to be delivered no later than 30 days following the vesting date unless the participant is subject to a blackout period. In such case, the shares are to be delivered once the blackout restriction has been lifted. It is assumed that all time-based RSUs will vest. We recognize forfeitures of RSUs in the period in which they occur. Nine Months Ended September 27, 2020 Total Restricted Stock Units Outstanding Weighted Average Grant Date Fair Value Outstanding, beginning of period 523,207 $ 59.58 Granted 211,000 79.00 Performance adjustment (1) (59,936) 67.50 Delivered (110,561) Withheld to cover (2) (15,620) Forfeited (53,544) Outstanding, end of period 494,546 $ 67.42 ____________ (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%. These awards are settled with payouts ranging from zero to 200% of the target award value depending on achievement. 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 two-thirds of the RSUs granted during the nine months ended September 27, 2020, 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 during the nine months ended September 27, |
Restructuring Costs
Restructuring Costs | 9 Months Ended |
Sep. 27, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Costs | Restructuring Costs 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 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 10. As of September 27, 2020, we expect to incur approximately $3 million to $4 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 American Residential 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 beginning in the second quarter of 2019 (collectively, the "2018 Plan"). Costs associated with the 2018 Plan include severance, retention and closure charges and continued throughout 2019. As of September 27, 2020, we do not expect to incur any material future charges related to the 2018 Plan. The following tables summarize the restructuring charges recorded for the periods indicated: Three Months Ended September 27, 2020 (In thousands) North American Residential Europe Architectural Corporate & Other Total 2019 Plan $ 1,825 $ — $ 82 $ 67 $ 1,974 2018 Plan (79) — — — (79) Total Restructuring Costs $ 1,746 $ — $ 82 $ 67 $ 1,895 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 27, 2020 (In thousands) North American Residential Europe Architectural Corporate & Other Total 2019 Plan $ 3,122 $ (37) $ 1,030 $ 482 $ 4,597 2018 Plan 387 — — — 387 Total Restructuring Costs $ 3,509 $ (37) $ 1,030 $ 482 $ 4,984 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 27, 2020 (In thousands) North American Residential Europe Architectural Corporate & Other Total 2019 Plan $ 8,581 $ 359 $ 1,536 $ 1,501 $ 11,977 2018 Plan 2,132 2,275 — — 4,407 Total Restructuring Costs $ 10,713 $ 2,634 $ 1,536 $ 1,501 $ 16,384 The changes in the accrual for restructuring by activity were as follows for the periods indicated: (In thousands) December 29, 2019 Severance Closure Costs Cash Payments September 27, 2020 2019 Plan $ 1,535 $ 1,073 $ 3,524 $ (5,475) $ 657 2018 Plan — 151 236 (387) — Total $ 1,535 $ 1,224 $ 3,760 $ (5,862) $ 657 (In thousands) December 30, 2018 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 |
Asset Impairment
Asset Impairment | 9 Months Ended |
Sep. 27, 2020 | |
Asset Impairment Charges [Abstract] | |
Asset Impairment | Asset Impairment During the three months ended September 27, 2020, we determined the continued decreased demand in the Architectural door market due to the impact of COVID-19 in the current year, along with the uncertainty of the duration and intensity of the pandemic on the Architectural door market for future periods were indicators that goodwill impairment was present in the Architectural reporting unit. The quantitative impairment test was conducted using multiple valuation techniques, including a discounted cash flow analysis and market approach, which utilizes Level 3 fair value inputs, and resulted in a goodwill impairment charge of $51.5 million. The charge represents the amount by which the carrying value of the Architectural reporting unit exceeded its fair value and reduced the goodwill balance in the Architectural reporting unit from $111.0 million to $59.5 million. During the nine months ended September 29, 2019, we recognized 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 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 27, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The effective tax rate differs from the Canadian statutory rate of 26.7% primarily due to nondeductible goodwill impairment charges related to prior stock acquisitions within the Architectural reporting unit, 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 and $0.9 million of income tax benefit due to the exercise and delivery of share-based awards during the three and nine months ended September 27, 2020, respectively, compared to $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.For the nine months ended September 27, 2020, we have calculated the provision for income taxes by applying an estimate of the annual effective tax rate for the full fiscal year to “ordinary” income or loss (pretax income or loss excluding unusual or infrequently occurring discrete items) for the reporting period. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 27, 2020 | |
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 27, 2020 September 29, 2019 September 27, 2020 September 29, 2019 Net income (loss) attributable to Masonite $ (21,766) $ 14,969 $ 42,116 $ 43,000 Shares used in computing basic earnings per share 24,495,760 24,944,126 24,607,926 25,215,034 Effect of dilutive securities: Incremental shares issuable under share compensation plans — 299,554 332,339 306,663 Shares used in computing diluted earnings per share 24,495,760 25,243,680 24,940,265 25,521,697 Basic earnings (loss) per common share attributable to Masonite $ (0.89) $ 0.60 $ 1.71 $ 1.71 Diluted earnings (loss) per common share attributable to Masonite $ (0.89) $ 0.59 $ 1.69 $ 1.68 Anti-dilutive instruments excluded from diluted earnings per common share 417,309 283,966 137,822 295,879 |
Segment Information
Segment Information | 9 Months Ended |
Sep. 27, 2020 | |
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 Corporate & Other category includes unallocated corporate costs and the results of immaterial operating segments which were not aggregated into any reportable segment. 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); • other items; • loss (income) from discontinued operations, net of tax; and • net income (loss) attributable to non-controlling interest. The definition of Adjusted EBITDA was updated in the third quarter of 2020 to exclude other items as these charges are not part of our underlying business performance. This change had no impact to Adjusted EBITDA for the three and nine months ended September 29, 2019. 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. Although Adjusted EBITDA is not a measure of financial condition or performance determined in accordance with GAAP, it is used to evaluate and compare the operating performance of the segments and it is one of the primary measures used to determine employee incentive compensation. Intersegment sales are recorded using market prices. Certain information with respect to segments is as follows for the periods indicated: Three Months Ended September 27, 2020 (In thousands) North American Residential Europe Architectural Corporate & Other Total Net sales $ 421,186 $ 75,192 $ 92,021 $ 6,100 $ 594,499 Intersegment sales (654) (910) (5,283) — (6,847) Net sales to external customers $ 420,532 $ 74,282 $ 86,738 $ 6,100 $ 587,652 Adjusted EBITDA $ 97,492 $ 15,021 $ 11,126 $ (14,639) $ 109,000 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 Nine Months Ended September 27, 2020 (In thousands) North American Residential Europe Architectural Corporate & Other Total Net sales $ 1,187,239 $ 176,778 $ 275,972 $ 14,493 $ 1,654,482 Intersegment sales (1,685) (1,882) (12,377) — (15,944) Net sales to external customers $ 1,185,554 $ 174,896 $ 263,595 $ 14,493 $ 1,638,538 Adjusted EBITDA $ 260,319 $ 23,782 $ 33,208 $ (34,900) $ 282,409 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 A reconciliation of our net income attributable to Masonite to consolidated Adjusted EBITDA is set forth as follows for the periods indicated: Three Months Ended Nine Months Ended (In thousands) September 27, 2020 September 29, 2019 September 27, 2020 September 29, 2019 Net income (loss) attributable to Masonite $ (21,766) $ 14,969 $ 42,116 $ 43,000 Plus: Depreciation 17,881 16,359 50,742 52,845 Amortization 5,519 7,054 17,900 21,980 Share based compensation expense 6,299 3,695 13,509 8,468 Loss (gain) on disposal of property, plant and equipment (416) 705 3,629 4,940 Restructuring costs 1,895 1,994 4,984 7,095 Asset impairment 51,515 — 51,515 13,767 Loss on disposal of subsidiaries — — 2,091 4,605 Interest expense, net 11,805 11,909 34,911 34,393 Loss on extinguishment of debt — 14,523 — 14,523 Other expense (income), net (1,953) (824) (3,350) (2,410) Income tax expense (804) 4,334 23,522 14,685 Other items (1) 37,750 — 37,750 — Net income attributable to non-controlling interest 1,275 1,126 3,090 3,165 Adjusted EBITDA $ 109,000 $ 75,844 $ 282,409 $ 221,056 __________ (1) Other items not part of our underlying business performance include $37,750 in legal reserves related to the previously disclosed settlement of U.S. class action litigation in the three and nine months ended September 27, 2020, and were recorded in selling, general and administration expenses within the condensed consolidated statements of comprehensive income (loss). Refer to Note 7. Commitments and Contingencies for additional information. |
Other Comprehensive Income and
Other Comprehensive Income and Accumulated Other Comprehensive Income | 9 Months Ended |
Sep. 27, 2020 | |
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 27, 2020 September 29, 2019 September 27, 2020 September 29, 2019 Accumulated foreign currency translation losses, beginning of period $ (136,969) $ (121,440) $ (113,336) $ (129,930) Foreign currency translation gain (loss) 14,137 (12,733) (12,072) (4,921) Income tax benefit (expense) on foreign currency translation gain 19 (10) (8) 15 Cumulative translation adjustment recognized upon deconsolidation of subsidiary — — 2,254 1,001 Less: foreign currency translation gain (loss) attributable to non-controlling interest 206 (122) (143) 226 Accumulated foreign currency translation losses, end of period (123,019) (134,061) (123,019) (134,061) Accumulated pension and other post-retirement adjustments, beginning of period (16,578) (22,392) (16,833) (22,989) Amortization of actuarial net losses 173 404 518 1,211 Income tax expense on amortization of actuarial net losses (44) (104) (134) (314) Accumulated pension and other post-retirement adjustments (16,449) (22,092) (16,449) (22,092) Accumulated other comprehensive loss $ (139,468) $ (156,153) $ (139,468) $ (156,153) Other comprehensive income (loss), net of tax $ 14,285 $ (12,443) $ (9,442) $ (3,008) Less: other comprehensive income (loss) attributable to non-controlling interest 206 (122) (143) 226 Other comprehensive income (loss) attributable to Masonite $ 14,079 $ (12,321) $ (9,299) $ (3,234) Cumulative translation adjustments are reclassified out of accumulated other comprehensive loss into loss on disposal of subsidiaries in the condensed consolidated statements of comprehensive income (loss). Actuarial net losses are reclassified out of accumulated other comprehensive loss into cost of goods sold in the condensed consolidated statements of comprehensive income (loss). Foreign currency translation gains as a result of translating our foreign assets and liabilities into U.S. dollars during the three months ended September 27, 2020, were $14.1 million, primarily driven by the strengthening of the Pound Sterling, the Canadian Dollar and the Euro in comparison to the U.S. Dollar during the period. During the nine months ended September 27, 2020, foreign currency translation losses were $12.1 million, primarily driven by the weakening of the Pound Sterling, the Canadian Dollar and the Mexican Peso, partially offset by strengthening of the Euro in comparison to the U.S. Dollar during the period. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 9 Months Ended |
Sep. 27, 2020 | |
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 27, 2020 September 29, 2019 Transactions involving cash: Interest paid $ 45,147 $ 44,230 Interest received 956 2,058 Income taxes paid 14,756 10,731 Income tax refunds 791 69 Cash paid for operating lease liabilities 20,986 19,636 Cash paid for finance lease liabilities 957 — Non-cash transactions from operating activities: Right-of-use assets acquired under operating leases 27,884 49,932 The following reconciles total cash, cash equivalents and restricted cash as of the dates indicated: September 27, 2020 December 29, 2019 Cash and cash equivalents $ 300,797 $ 166,964 Restricted cash 10,560 10,644 Total cash, cash equivalents and restricted cash $ 311,357 $ 177,608 Property, plant and equipment additions in accounts payable were $3.5 million and $6.3 million as of September 27, 2020, and December 29, 2019, respectively. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 27, 2020 | |
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 27, 2020 December 29, 2019 (In thousands) Fair Value Carrying Value Fair Value Carrying Value 5.375% senior unsecured notes due 2028 $ 531,353 $ 494,207 $ 529,105 $ 493,648 5.750% senior unsecured notes due 2026 $ 313,320 $ 296,775 $ 318,846 $ 296,367 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. 27, 2020 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements | Adoption of Recent Accounting Pronouncements In June 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2016-13, “Financial Instruments—Credit Losses (Topic 326)”, which replaced the incurred loss methodology for recognizing credit losses with a current expected credit losses model. This standard applied to most financial assets, including trade receivables. Our prior accounts receivable policy is described in detail in our Annual Report on Form 10-K for the year ended December 29, 2019. We adopted the new guidance using a modified retrospective approach as of December 30, 2019, the beginning of fiscal year 2020, and the adoption did not have a material impact on our financial statements and no adjustment was necessary to retained earnings on December 30, 2019. The adoption of the standard resulted in a change in accounting policy for accounts receivable. Our new accounting policy for accounts receivable is presented below. Accounts Receivable We record accounts receivable as our products are received by our customers. Our customers are primarily retailers, distributors and contractors. We record an allowance for credit losses at the time that accounts receivable are initially recorded based on our historical write-off experience and the current economic environment as well as our expectations of future economic conditions. We reassess the allowance at each reporting date. When it becomes apparent, based on age or customer circumstances, that such amounts will not be collected, they are charged to the allowance. Payments subsequently received are credited to the credit loss expense account included within selling, general and administration expenses in the consolidated statements of comprehensive income (loss). Generally, we do not require collateral for our accounts receivable. Other Recent Accounting Pronouncements not yet Adopted In December 2019, the FASB issued ASU 2019-12, "Simplifying the Accounting for Income Taxes," as part of its Simplification Initiative to reduce the cost and complexity in accounting for income taxes. This standard removes certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. It also amends other aspects of the guidance to help simplify and promote consistent application of GAAP. The guidance is effective for interim and annual periods beginning after December 15, 2020, with early adoption permitted. We are in the process of evaluating this guidance to determine the impact it may have on our financial statements. 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. |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 27, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | The amounts of inventory on hand were as follows as of the dates indicated: (In thousands) September 27, 2020 December 29, 2019 Raw materials $ 175,610 $ 179,155 Finished goods 74,490 70,211 Provision for obsolete or aged inventory (6,950) (7,136) Inventories, net $ 243,150 $ 242,230 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 9 Months Ended |
Sep. 27, 2020 | |
Accrued Expenses [Abstract] | |
Schedule of Accrued Expenses | The details of our accrued expenses were as follows as of the dates indicated: (In thousands) September 27, 2020 December 29, 2019 Accrued payroll $ 68,177 $ 60,876 Accrued rebates 49,712 33,556 Current portion of operating lease liabilities 22,296 20,980 Accrued interest 5,391 16,913 Accrued legal settlement 37,750 — Other accruals 51,680 48,080 Total accrued expenses $ 235,006 $ 180,405 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Sep. 27, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | (In thousands) September 27, 2020 December 29, 2019 5.375% senior unsecured notes due 2028 $ 500,000 $ 500,000 5.750% senior unsecured notes due 2026 300,000 300,000 Debt issuance costs (9,018) (9,985) Other long-term debt 900 969 Total long-term debt $ 791,882 $ 790,984 |
Share Based Compensation Plans
Share Based Compensation Plans (Tables) | 9 Months Ended |
Sep. 27, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock appreciation rights award activity | Nine Months Ended September 27, 2020 Stock Appreciation Rights Aggregate Intrinsic Value (in thousands) Weighted Average Exercise Price Average Remaining Contractual Life (Years) Outstanding, beginning of period 404,447 $ 7,615 $ 53.62 4.7 Granted 32,435 83.39 Exercised (143,624) 4,454 43.24 Forfeited (15,538) 62.78 Outstanding, end of period 277,720 $ 8,346 $ 61.96 6.6 Exercisable, end of period 161,052 $ 5,240 $ 59.48 5.2 |
Schedule of Share-based Compensation, Stock Appreciation Rights, Valuation Assumptions | The weighted average grant date assumptions used for the SARs granted were as follows for the periods indicated: 2020 Grants SAR value (model conclusion) $ 20.56 Risk-free rate 1.2 % Expected dividend yield 0.0 % Expected volatility 22.6 % Expected term (years) 6.0 |
Restricted stock units award activity | Nine Months Ended September 27, 2020 Total Restricted Stock Units Outstanding Weighted Average Grant Date Fair Value Outstanding, beginning of period 523,207 $ 59.58 Granted 211,000 79.00 Performance adjustment (1) (59,936) 67.50 Delivered (110,561) Withheld to cover (2) (15,620) Forfeited (53,544) Outstanding, end of period 494,546 $ 67.42 ____________ (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%. These awards are settled with payouts ranging from zero to 200% of the target award value depending on achievement. 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. 27, 2020 | |
Restructuring and Related Activities [Abstract] | |
Total restructuring costs by plan | The following tables summarize the restructuring charges recorded for the periods indicated: Three Months Ended September 27, 2020 (In thousands) North American Residential Europe Architectural Corporate & Other Total 2019 Plan $ 1,825 $ — $ 82 $ 67 $ 1,974 2018 Plan (79) — — — (79) Total Restructuring Costs $ 1,746 $ — $ 82 $ 67 $ 1,895 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 27, 2020 (In thousands) North American Residential Europe Architectural Corporate & Other Total 2019 Plan $ 3,122 $ (37) $ 1,030 $ 482 $ 4,597 2018 Plan 387 — — — 387 Total Restructuring Costs $ 3,509 $ (37) $ 1,030 $ 482 $ 4,984 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 27, 2020 (In thousands) North American Residential Europe Architectural Corporate & Other Total 2019 Plan $ 8,581 $ 359 $ 1,536 $ 1,501 $ 11,977 2018 Plan 2,132 2,275 — — 4,407 Total Restructuring Costs $ 10,713 $ 2,634 $ 1,536 $ 1,501 $ 16,384 |
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 29, 2019 Severance Closure Costs Cash Payments September 27, 2020 2019 Plan $ 1,535 $ 1,073 $ 3,524 $ (5,475) $ 657 2018 Plan — 151 236 (387) — Total $ 1,535 $ 1,224 $ 3,760 $ (5,862) $ 657 (In thousands) December 30, 2018 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 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 27, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | (In thousands, except share and per share information) Three Months Ended Nine Months Ended September 27, 2020 September 29, 2019 September 27, 2020 September 29, 2019 Net income (loss) attributable to Masonite $ (21,766) $ 14,969 $ 42,116 $ 43,000 Shares used in computing basic earnings per share 24,495,760 24,944,126 24,607,926 25,215,034 Effect of dilutive securities: Incremental shares issuable under share compensation plans — 299,554 332,339 306,663 Shares used in computing diluted earnings per share 24,495,760 25,243,680 24,940,265 25,521,697 Basic earnings (loss) per common share attributable to Masonite $ (0.89) $ 0.60 $ 1.71 $ 1.71 Diluted earnings (loss) per common share attributable to Masonite $ (0.89) $ 0.59 $ 1.69 $ 1.68 Anti-dilutive instruments excluded from diluted earnings per common share 417,309 283,966 137,822 295,879 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 27, 2020 | |
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 27, 2020 (In thousands) North American Residential Europe Architectural Corporate & Other Total Net sales $ 421,186 $ 75,192 $ 92,021 $ 6,100 $ 594,499 Intersegment sales (654) (910) (5,283) — (6,847) Net sales to external customers $ 420,532 $ 74,282 $ 86,738 $ 6,100 $ 587,652 Adjusted EBITDA $ 97,492 $ 15,021 $ 11,126 $ (14,639) $ 109,000 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 Nine Months Ended September 27, 2020 (In thousands) North American Residential Europe Architectural Corporate & Other Total Net sales $ 1,187,239 $ 176,778 $ 275,972 $ 14,493 $ 1,654,482 Intersegment sales (1,685) (1,882) (12,377) — (15,944) Net sales to external customers $ 1,185,554 $ 174,896 $ 263,595 $ 14,493 $ 1,638,538 Adjusted EBITDA $ 260,319 $ 23,782 $ 33,208 $ (34,900) $ 282,409 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 |
Reconciliation of consolidated Adjusted EBITDA to net income (loss) attributable to Masonite | A reconciliation of our net income attributable to Masonite to consolidated Adjusted EBITDA is set forth as follows for the periods indicated: Three Months Ended Nine Months Ended (In thousands) September 27, 2020 September 29, 2019 September 27, 2020 September 29, 2019 Net income (loss) attributable to Masonite $ (21,766) $ 14,969 $ 42,116 $ 43,000 Plus: Depreciation 17,881 16,359 50,742 52,845 Amortization 5,519 7,054 17,900 21,980 Share based compensation expense 6,299 3,695 13,509 8,468 Loss (gain) on disposal of property, plant and equipment (416) 705 3,629 4,940 Restructuring costs 1,895 1,994 4,984 7,095 Asset impairment 51,515 — 51,515 13,767 Loss on disposal of subsidiaries — — 2,091 4,605 Interest expense, net 11,805 11,909 34,911 34,393 Loss on extinguishment of debt — 14,523 — 14,523 Other expense (income), net (1,953) (824) (3,350) (2,410) Income tax expense (804) 4,334 23,522 14,685 Other items (1) 37,750 — 37,750 — Net income attributable to non-controlling interest 1,275 1,126 3,090 3,165 Adjusted EBITDA $ 109,000 $ 75,844 $ 282,409 $ 221,056 __________ (1) Other items not part of our underlying business performance include $37,750 in legal reserves related to the previously disclosed settlement of U.S. class action litigation in the three and nine months ended September 27, 2020, and were recorded in selling, general and administration expenses within the condensed consolidated statements of comprehensive income (loss). Refer to Note 7. Commitments and Contingencies for additional information. |
Other Comprehensive Income an_2
Other Comprehensive Income and Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
Sep. 27, 2020 | |
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 27, 2020 September 29, 2019 September 27, 2020 September 29, 2019 Accumulated foreign currency translation losses, beginning of period $ (136,969) $ (121,440) $ (113,336) $ (129,930) Foreign currency translation gain (loss) 14,137 (12,733) (12,072) (4,921) Income tax benefit (expense) on foreign currency translation gain 19 (10) (8) 15 Cumulative translation adjustment recognized upon deconsolidation of subsidiary — — 2,254 1,001 Less: foreign currency translation gain (loss) attributable to non-controlling interest 206 (122) (143) 226 Accumulated foreign currency translation losses, end of period (123,019) (134,061) (123,019) (134,061) Accumulated pension and other post-retirement adjustments, beginning of period (16,578) (22,392) (16,833) (22,989) Amortization of actuarial net losses 173 404 518 1,211 Income tax expense on amortization of actuarial net losses (44) (104) (134) (314) Accumulated pension and other post-retirement adjustments (16,449) (22,092) (16,449) (22,092) Accumulated other comprehensive loss $ (139,468) $ (156,153) $ (139,468) $ (156,153) Other comprehensive income (loss), net of tax $ 14,285 $ (12,443) $ (9,442) $ (3,008) Less: other comprehensive income (loss) attributable to non-controlling interest 206 (122) (143) 226 Other comprehensive income (loss) attributable to Masonite $ 14,079 $ (12,321) $ (9,299) $ (3,234) |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 9 Months Ended |
Sep. 27, 2020 | |
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 27, 2020 September 29, 2019 Transactions involving cash: Interest paid $ 45,147 $ 44,230 Interest received 956 2,058 Income taxes paid 14,756 10,731 Income tax refunds 791 69 Cash paid for operating lease liabilities 20,986 19,636 Cash paid for finance lease liabilities 957 — Non-cash transactions from operating activities: Right-of-use assets acquired under operating leases 27,884 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 27, 2020 December 29, 2019 Cash and cash equivalents $ 300,797 $ 166,964 Restricted cash 10,560 10,644 Total cash, cash equivalents and restricted cash $ 311,357 $ 177,608 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 27, 2020 | |
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 27, 2020 December 29, 2019 (In thousands) Fair Value Carrying Value Fair Value Carrying Value 5.375% senior unsecured notes due 2028 $ 531,353 $ 494,207 $ 529,105 $ 493,648 5.750% senior unsecured notes due 2026 $ 313,320 $ 296,775 $ 318,846 $ 296,367 |
Business Overview and Signifi_3
Business Overview and Significant Accounting Policies (Details) | Sep. 27, 2020facilityCountry |
Accounting Policies [Abstract] | |
Number of manufacturing locations | facility | 62 |
Number of countries | Country | 8 |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Narrative) (Details) - USD ($) $ in Thousands | Aug. 31, 2020 | Dec. 13, 2019 | Aug. 29, 2019 | Sep. 27, 2020 | Jun. 28, 2020 | Mar. 29, 2020 | Sep. 29, 2019 | Jun. 30, 2019 | Sep. 27, 2020 | Sep. 29, 2019 |
Business Acquisition [Line Items] | ||||||||||
Cash consideration, net of cash acquired | $ 1,912 | $ 1,858 | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Loss on disposal of subsidiaries | $ 0 | $ 0 | $ (2,091) | $ (4,605) | ||||||
India | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Loss on disposal of subsidiaries | $ 0 | $ (2,100) | ||||||||
Recognition of cumulative translation adjustment ourt of accumulated other comprehensive loss | 2,300 | |||||||||
Write-off of assets and other professional fees | $ 200 | |||||||||
Window Widgets | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Loss on disposal of subsidiaries | $ 9,700 | |||||||||
Write-off of assets and other professional fees | 8,300 | |||||||||
Consideration, net of cash disposed | $ 1,200 | |||||||||
Cumulative translation adjustment | $ 1,400 | |||||||||
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 | |||||||||
Write-off of assets and other professional fees | 3,600 | |||||||||
Cumulative translation adjustment | $ 1,000 | |||||||||
Development Entity | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Cash consideration | $ 1,900 | |||||||||
Top Doors | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Goodwill acquired during period | $ 1,100 | |||||||||
Cash consideration, net of cash acquired | $ 1,800 |
Accounts Receivable (Details)
Accounts Receivable (Details) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 27, 2020USD ($)Customer | Dec. 29, 2019USD ($)Customer | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Allowance for doubtful accounts | $ | $ 2.4 | $ 1.8 |
Accounts Receivable | Customer Concentration Risk | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Concentration risk, customers | Customer | 10 | 10 |
Concentration risk, percent | 55.90% | 44.90% |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Sep. 27, 2020 | Dec. 29, 2019 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 175,610 | $ 179,155 |
Finished goods | 74,490 | 70,211 |
Provision for obsolete or aged inventory | (6,950) | (7,136) |
Inventories, net | $ 243,150 | $ 242,230 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | Sep. 27, 2020 | Dec. 29, 2019 |
Accrued Expenses [Abstract] | ||
Accrued payroll | $ 68,177 | $ 60,876 |
Accrued rebates | 49,712 | 33,556 |
Current portion of operating lease liabilities | 22,296 | 20,980 |
Accrued interest | 5,391 | 16,913 |
Accrued legal settlement | 37,750 | 0 |
Other accruals | 51,680 | 48,080 |
Total accrued expenses | $ 235,006 | $ 180,405 |
Long-Term Debt (Details)
Long-Term Debt (Details) - USD ($) $ in Thousands | Sep. 27, 2020 | Dec. 29, 2019 |
Debt Instrument [Line Items] | ||
Other long-term debt | $ 900 | $ 969 |
Total long-term debt | 791,882 | 790,984 |
Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt issuance costs | (9,018) | (9,985) |
Senior Notes | Senior Notes Due 2026 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 300,000 | 300,000 |
Senior Notes | Senior Notes Due 2028 | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 500,000 | $ 500,000 |
Long-Term Debt (Narrative) (Det
Long-Term Debt (Narrative) (Details) - USD ($) | Aug. 10, 2019 | Sep. 27, 2020 | Sep. 29, 2019 | Sep. 27, 2020 | Sep. 29, 2019 | Jul. 25, 2019 | Jan. 31, 2019 | Aug. 27, 2018 |
Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest expense | $ 11,400,000 | $ 12,000,000 | $ 34,100,000 | $ 34,800,000 | ||||
Senior Notes | Senior Notes Due 2028 | ||||||||
Debt Instrument [Line Items] | ||||||||
Aggregate principal | $ 500,000,000 | |||||||
Interest rate stated percentage | 5.375% | 5.375% | ||||||
Senior Notes | Senior Notes Due 2026 | ||||||||
Debt Instrument [Line Items] | ||||||||
Aggregate principal | $ 300,000,000 | |||||||
Interest rate stated percentage | 5.75% | 5.75% | ||||||
Senior Notes | Senior Notes Due 2023 | ||||||||
Debt Instrument [Line Items] | ||||||||
Extinguishment of debt | $ 500,000,000 | |||||||
Revolving Credit Facility | ABL Facility 2024 | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | $ 250,000,000 | |||||||
Revolving credit facility availability | $ 205,600,000 | $ 205,600,000 | ||||||
Revolving credit facilities | $ 0 | $ 0 | ||||||
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% |
Commitment and Contingencies (D
Commitment and Contingencies (Details) - USD ($) $ in Thousands | Sep. 04, 2020 | Aug. 31, 2020 | Sep. 27, 2020 | Sep. 29, 2019 | Sep. 27, 2020 | Sep. 29, 2019 |
Loss Contingencies [Line Items] | ||||||
Legal reserve | $ 37,750 | $ 0 | $ 37,750 | $ 0 | ||
In re: Interior Molded Doors Direct Purchaser Antitrust Litigation | ||||||
Loss Contingencies [Line Items] | ||||||
Legal settlement awarded to other parties | $ 28,000 | |||||
In re: Interior Molded Doors Indirect Purchaser Antitrust Litigation | ||||||
Loss Contingencies [Line Items] | ||||||
Legal settlement awarded to other parties | $ 9,750 |
Share Based Compensation Plan_2
Share Based Compensation Plans Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 27, 2020 | Sep. 29, 2019 | Sep. 27, 2020 | Sep. 29, 2019 | Jul. 12, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation | $ 6,299 | $ 3,695 | $ 13,509 | $ 8,468 | |
Share based compensation unrecognized | 18,700 | $ 18,700 | |||
Weighted average remaining requisite service period | 1 year 7 months 6 days | ||||
Deferred compensation liability | 6,400 | $ 6,400 | |||
Deferred compensation asset | $ 6,200 | $ 6,200 | |||
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 | 728,990 | 728,990 | |||
Stock Appreciation Rights (SARs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 3 years | ||||
Plan term | 10 years | ||||
Vested, fair value | $ 1,000 | ||||
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 2 months 12 days | ||||
Units vested | 126,181 | ||||
Fair value of shares vested | $ 7,600 | ||||
Service Requirement | Restricted Stock Units (RSUs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting percentage | 65.00% | ||||
Service and Performance Requirements | Restricted Stock Units (RSUs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting percentage | 35.00% |
Share Based Compensation Plan_3
Share Based Compensation Plans (SARs) (Details) - Stock Appreciation Rights (SARs) - USD ($) $ / shares in Units, $ in Thousands | Dec. 29, 2019 | Sep. 27, 2020 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Outstanding, beginning of period, shares | 404,447 | |
Granted, shares | 32,435 | |
Exercised, shares | (143,624) | |
Forfeited, shares | 15,538 | |
Outstanding, end of period, shares | 404,447 | 277,720 |
Exercisable, shares | 161,052 | |
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 | $ 7,615 | |
Exercised, aggregate intrinsic value | 4,454 | |
Outstanding, end period, aggregate intrinsic value | $ 7,615 | 8,346 |
Exercisable, aggregate intrinsic value | $ 5,240 | |
Outstanding, beginning of period, weighted average remaining contractual term | 4 years 8 months 12 days | 6 years 7 months 6 days |
Outstanding, end of period, weighted average remaining contractual term | 4 years 8 months 12 days | 6 years 7 months 6 days |
Exercisable, weighted average remaining contractual term | 5 years 2 months 12 days | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||
Outstanding, beginning of period, weighted average exercise price | $ 53.62 | |
Granted, weighted average exercise price | 83.39 | |
Exercised, weighted average exercise price | 43.24 | |
Forfeited, weighted average exercise price | 62.78 | |
Outstanding, end of period, weighted average exercise price | $ 53.62 | 61.96 |
Exercisable, weighted average exercise price | $ 59.48 |
Share Based Compensation Plan_4
Share Based Compensation Plans (Weighted Average Grant Date Assumptions) (Details) - Stock Appreciation Rights (SARs) | 9 Months Ended |
Sep. 27, 2020$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
SAR Value (model conclusion) | $ 20.56 |
Risk-free rate | 1.20% |
Expected dividend yield | 0.00% |
Expected volatility | 22.60% |
Expected term (years) | 6 years |
Share Based Compensation Plan_5
Share Based Compensation Plans (RSUs) (Details) | 9 Months Ended |
Sep. 27, 2020$ / 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 | $ 67.50 |
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) | 523,207 |
Granted (shares) | 211,000 |
Performance adjustment (shares) | 59,936 |
Delivered (shares) | (110,561) |
Withheld to cover (shares) | (15,620) |
Forfeited (shares) | (53,544) |
Outstanding, end of period (shares) | 494,546 |
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 | $ 59.58 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | 79 |
Outstanding, end of period (weighted average grant date fair value) | $ / shares | $ 67.42 |
Restructuring Costs (Restructur
Restructuring Costs (Restructuring Costs by Plan) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 27, 2020 | Sep. 29, 2019 | Sep. 27, 2020 | Sep. 29, 2019 | Dec. 29, 2019 | Dec. 30, 2018 | |
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring costs | $ 1,895 | $ 1,994 | $ 4,984 | $ 7,095 | ||
Cumulative amount incurred to date | 16,384 | 16,384 | ||||
Restructuring Reserve | 657 | 853 | 657 | 853 | $ 1,535 | $ 654 |
Payments for Restructuring | 5,862 | 6,896 | ||||
Severance | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring costs | 1,224 | 5,191 | ||||
Closure Costs | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring costs | 3,760 | 1,904 | ||||
2019 Plan | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring costs | 1,974 | 1,327 | 4,597 | 5,012 | ||
Cumulative amount incurred to date | 11,977 | 11,977 | ||||
Restructuring Reserve | 657 | 827 | 657 | 827 | 1,535 | 0 |
Payments for Restructuring | 5,475 | 4,185 | ||||
2019 Plan | Severance | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring costs | 1,073 | 3,393 | ||||
2019 Plan | Closure Costs | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring costs | 3,524 | 1,619 | ||||
2019 Plan | North American Residential | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring costs | 1,825 | 1,351 | 3,122 | 3,755 | ||
Cumulative amount incurred to date | 8,581 | 8,581 | ||||
2019 Plan | Europe | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring costs | 0 | 0 | (37) | 336 | ||
Cumulative amount incurred to date | 359 | 359 | ||||
2019 Plan | Architectural | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring costs | 82 | 32 | 1,030 | 518 | ||
Cumulative amount incurred to date | 1,536 | 1,536 | ||||
2019 Plan | Corporate & Other | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring costs | 67 | (56) | 482 | 403 | ||
Cumulative amount incurred to date | 1,501 | 1,501 | ||||
2018 Plan | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring costs | (79) | 667 | 387 | 2,083 | ||
Cumulative amount incurred to date | 4,407 | 4,407 | ||||
Restructuring Reserve | 0 | 26 | 0 | 26 | $ 0 | 596 |
Payments for Restructuring | 387 | 2,653 | ||||
2018 Plan | Severance | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring costs | 151 | 1,798 | ||||
2018 Plan | Closure Costs | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring costs | 236 | 285 | ||||
2018 Plan | North American Residential | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring costs | (79) | 410 | 387 | 1,199 | ||
Cumulative amount incurred to date | 2,132 | 2,132 | ||||
2018 Plan | Europe | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring costs | 0 | 257 | 0 | 884 | ||
Cumulative amount incurred to date | 2,275 | 2,275 | ||||
2018 Plan | Architectural | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring costs | 0 | 0 | 0 | 0 | ||
Cumulative amount incurred to date | 0 | 0 | ||||
2018 Plan | Corporate & Other | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring costs | 0 | 0 | 0 | 0 | ||
Cumulative amount incurred to date | 0 | 0 | ||||
Other | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Reserve | 0 | 0 | $ 58 | |||
Payments for Restructuring | 58 | |||||
Other | Severance | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring costs | 0 | |||||
Other | Closure Costs | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring costs | 0 | |||||
Operating Segments | North American Residential | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring costs | 1,746 | 1,761 | 3,509 | 4,954 | ||
Cumulative amount incurred to date | 10,713 | 10,713 | ||||
Operating Segments | Europe | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring costs | 0 | 257 | (37) | 1,220 | ||
Cumulative amount incurred to date | 2,634 | 2,634 | ||||
Operating Segments | Architectural | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring costs | 82 | 32 | 1,030 | 518 | ||
Cumulative amount incurred to date | 1,536 | 1,536 | ||||
Operating Segments | Corporate & Other | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring costs | 67 | $ (56) | 482 | $ 403 | ||
Cumulative amount incurred to date | $ 1,501 | $ 1,501 |
Restructuring Costs (Details)
Restructuring Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2020 | Sep. 29, 2019 | Sep. 27, 2020 | Sep. 29, 2019 | |
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve, beginning balance | $ 1,535 | $ 654 | ||
Restructuring charges | $ 1,895 | $ 1,994 | 4,984 | 7,095 |
Cash payments | (5,862) | (6,896) | ||
Restructuring reserve, ending balance | 657 | 853 | 657 | 853 |
Severance | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring charges | 1,224 | 5,191 | ||
Closure Costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring charges | 3,760 | 1,904 | ||
2019 Plan | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve, beginning balance | 1,535 | 0 | ||
Restructuring charges | 1,974 | 1,327 | 4,597 | 5,012 |
Cash payments | (5,475) | (4,185) | ||
Restructuring reserve, ending balance | 657 | 827 | 657 | 827 |
2019 Plan | Severance | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring charges | 1,073 | 3,393 | ||
2019 Plan | Closure Costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring charges | 3,524 | 1,619 | ||
2018 Plan | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve, beginning balance | 0 | 596 | ||
Restructuring charges | (79) | 667 | 387 | 2,083 |
Cash payments | (387) | (2,653) | ||
Restructuring reserve, ending balance | 0 | 26 | 0 | 26 |
2018 Plan | Severance | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring charges | 151 | 1,798 | ||
2018 Plan | Closure Costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring charges | 236 | 285 | ||
Other | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve, beginning balance | 58 | |||
Cash payments | (58) | |||
Restructuring reserve, ending balance | $ 0 | 0 | ||
Other | Severance | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring charges | 0 | |||
Other | Closure Costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring charges | $ 0 | |||
Minimum | 2019 Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and Related Cost, Expected Cost Remaining | 3,000 | 3,000 | ||
Maximum | 2019 Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and Related Cost, Expected Cost Remaining | $ 4,000 | $ 4,000 |
Asset Impairment (Details)
Asset Impairment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 27, 2020 | Sep. 29, 2019 | Sep. 27, 2020 | Sep. 29, 2019 | Dec. 29, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Goodwill | $ 131,827 | $ 131,827 | $ 184,192 | ||
Asset impairment | 51,515 | $ 0 | 51,515 | $ 13,767 | |
Book value of asset group | 23,200 | 23,200 | |||
Architectural | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Goodwill impairment charge | (51,500) | ||||
Goodwill | $ 59,500 | $ 59,500 | $ 111,000 | ||
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. 27, 2020 | Sep. 29, 2019 | Sep. 27, 2020 | Sep. 29, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Canadian federal statutory rate | 26.70% | |||
Income tax benefit due to the exercise and delivery of share-based awards | $ 0.1 | $ 0.1 | $ 0.9 | $ 0.1 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2020 | Sep. 29, 2019 | Sep. 27, 2020 | Sep. 29, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Net income (loss) attributable to Masonite | $ (21,766) | $ 14,969 | $ 42,116 | $ 43,000 |
Shares used in computing basic earnings per share | 24,495,760 | 24,944,126 | 24,607,926 | 25,215,034 |
Effect of dilutive securities: | ||||
Incremental shares issuable under share compensation plans | 0 | 299,554 | 332,339 | 306,663 |
Shares used in computing diluted earnings per share | 24,495,760 | 25,243,680 | 24,940,265 | 25,521,697 |
Basic earnings per common share attributable to Masonite (in dollars per share) | $ (0.89) | $ 0.60 | $ 1.71 | $ 1.71 |
Diluted earnings per common share attributable to Masonite (in dollars per share) | $ (0.89) | $ 0.59 | $ 1.69 | $ 1.68 |
Stock Appreciation Rights (SARs) | ||||
Effect of dilutive securities: | ||||
Anti-dilutive instruments excluded from diluted earnings per common share | 417,309 | 283,966 | 137,822 | 295,879 |
Segment Information (Geographic
Segment Information (Geographic Segments Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2020 | Sep. 29, 2019 | Sep. 27, 2020 | Sep. 29, 2019 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | $ 587,652 | $ 552,192 | $ 1,638,538 | $ 1,645,446 |
Adjusted EBITDA | 109,000 | 75,844 | 282,409 | 221,056 |
Operating Segments | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | 594,499 | 557,441 | 1,654,482 | 1,660,274 |
Intersegment Eliminations | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | (6,847) | (5,249) | (15,944) | (14,828) |
North American Residential | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | 420,532 | 373,911 | 1,185,554 | 1,107,246 |
Adjusted EBITDA | 97,492 | 61,549 | 260,319 | 178,571 |
North American Residential | Operating Segments | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | 421,186 | 374,612 | 1,187,239 | 1,109,919 |
North American Residential | Intersegment Eliminations | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | (654) | (701) | (1,685) | (2,673) |
Europe | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | 74,282 | 75,965 | 174,896 | 241,185 |
Adjusted EBITDA | 15,021 | 10,645 | 23,782 | 34,050 |
Europe | Operating Segments | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | 75,192 | 76,308 | 176,778 | 242,408 |
Europe | Intersegment Eliminations | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | (910) | (343) | (1,882) | (1,223) |
Architectural | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | 86,738 | 96,502 | 263,595 | 279,274 |
Adjusted EBITDA | 11,126 | 13,920 | 33,208 | 34,312 |
Architectural | Operating Segments | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | 92,021 | 100,707 | 275,972 | 290,206 |
Architectural | Intersegment Eliminations | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | (5,283) | (4,205) | (12,377) | (10,932) |
Corporate & Other | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | 6,100 | 5,814 | 14,493 | 17,741 |
Adjusted EBITDA | (14,639) | (10,270) | (34,900) | (25,877) |
Corporate & Other | Operating Segments | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | 6,100 | 5,814 | 14,493 | 17,741 |
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. 27, 2020 | Sep. 29, 2019 | Sep. 27, 2020 | Sep. 29, 2019 | |
Segment Reporting [Abstract] | ||||
Adjusted EBITDA | $ 109,000 | $ 75,844 | $ 282,409 | $ 221,056 |
Depreciation | 17,881 | 16,359 | 50,742 | 52,845 |
Amortization | 5,519 | 7,054 | 17,900 | 21,980 |
Share based compensation expense | 6,299 | 3,695 | 13,509 | 8,468 |
Loss (gain) on disposal of property, plant and equipment | (416) | 705 | 3,629 | 4,940 |
Restructuring costs | 1,895 | 1,994 | 4,984 | 7,095 |
Asset impairment | 51,515 | 0 | 51,515 | 13,767 |
Loss on disposal of subsidiaries | 0 | 0 | 2,091 | 4,605 |
Interest expense, net | 11,805 | 11,909 | 34,911 | 34,393 |
Loss on extinguishment of debt | 0 | (14,523) | 0 | (14,523) |
Other expense (income), net | (1,953) | (824) | (3,350) | (2,410) |
Income tax expense | (804) | 4,334 | 23,522 | 14,685 |
Other items | 37,750 | 0 | 37,750 | 0 |
Net income attributable to non-controlling interest | 1,275 | 1,126 | 3,090 | 3,165 |
Net income attributable to Masonite | $ (21,766) | $ 14,969 | $ 42,116 | $ 43,000 |
Other Comprehensive Income an_3
Other Comprehensive Income and Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 27, 2020 | Sep. 29, 2019 | Sep. 27, 2020 | Sep. 29, 2019 | Dec. 29, 2019 | |
Accumulated Foreign Currency Translation Gains (Losses) [Roll Forward] | |||||
Accumulated foreign currency translation gains (losses), beginning of period | $ (136,969) | $ (121,440) | $ (113,336) | $ (129,930) | |
Foreign currency translation gain (loss) | 14,137 | (12,733) | (12,072) | (4,921) | |
Income tax benefit (expense) on foreign currency translation gain (loss) | 19 | (10) | (8) | 15 | |
Cumulative translation adjustment recognized upon deconsolidation of subsidiary | 0 | 0 | 2,254 | 1,001 | |
Less: foreign currency translation gain (loss) attributable to non-controlling interest | 206 | (122) | (143) | 226 | |
Accumulated foreign currency translation gains (losses), end of period | (123,019) | (134,061) | (123,019) | (134,061) | |
Accumulated Amortization of Actuarial Net Losses [Roll Forward] | |||||
Accumulated pension and other post-retirement adjustments, beginning of period | (16,578) | (22,392) | (16,833) | (22,989) | |
Amortization of actuarial net losses | 173 | 404 | 518 | 1,211 | |
Income tax expense on amortization of actuarial net losses | (44) | (104) | (134) | (314) | |
Accumulated pension and other post-retirement adjustments | (16,449) | (22,092) | (16,449) | (22,092) | |
Accumulated other comprehensive loss | (139,468) | (156,153) | (139,468) | (156,153) | $ (130,169) |
Other comprehensive income (loss), net of tax | 14,285 | (12,443) | (9,442) | (3,008) | |
Less: other comprehensive income (loss) attributable to non-controlling interest | 206 | (122) | (143) | 226 | |
Other comprehensive income (loss) attributable to Masonite | 14,079 | (12,321) | (9,299) | (3,234) | |
Foreign currency translation gain (loss) | $ 14,137 | $ (12,733) | $ (12,072) | $ (4,921) |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 27, 2020 | Sep. 29, 2019 | Dec. 29, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |||
Property, Plant and Equipment, Additions | $ 3,500 | $ 6,300 | |
Transactions involving cash: | |||
Interest paid | 45,147 | $ 44,230 | |
Interest received | 956 | 2,058 | |
Income taxes paid | 14,756 | 10,731 | |
Income tax refunds | 791 | 69 | |
Cash paid for operating lease liabilities | 20,986 | 19,636 | |
Cash paid for finance lease liabilities | 957 | 0 | |
Non-cash transactions from operating activities: | |||
Right-of-use assets acquired in under operating leases | $ 27,884 | $ 49,932 |
Supplemental Cash Flow Inform_4
Supplemental Cash Flow Information Cash, cash equivalents and restricted cash (Details) - USD ($) $ in Thousands | Sep. 27, 2020 | Dec. 29, 2019 | Sep. 29, 2019 | Dec. 30, 2018 |
Supplemental Cash Flow Elements [Abstract] | ||||
Cash and cash equivalents | $ 300,797 | $ 166,964 | ||
Restricted cash | 10,560 | 10,644 | ||
Total cash, cash equivalents and restricted cash | $ 311,357 | $ 177,608 | $ 120,600 | $ 126,141 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details) - Senior Notes - Fair Value, Inputs, Level 2 - USD ($) $ in Thousands | Sep. 27, 2020 | Dec. 29, 2019 |
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 | $ 531,353 | $ 529,105 |
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 | 494,207 | 493,648 |
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 | 313,320 | 318,846 |
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 | $ 296,775 | $ 296,367 |