Cover Page Document
Cover Page Document - USD ($) $ in Billions | 12 Months Ended | ||
Jan. 02, 2022 | Feb. 22, 2022 | Jul. 04, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Jan. 2, 2022 | ||
Current Fiscal Year End Date | --01-02 | ||
Document Transition Report | false | ||
Entity File Number | 001-11796 | ||
Entity Registrant Name | Masonite International Corporation | ||
Entity Tax Identification Number | 98-0377314 | ||
Entity Incorporation, State or Country Code | Z4 | ||
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 Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Public Float | $ 2.7 | ||
Entity Bankruptcy Proceedings, Reporting Current | true | ||
Entity Common Stock, Shares Outstanding | 23,246,727 | ||
Documents Incorporated by Reference | Portions of the registrant’s definitive Proxy Statement for its 2022 Annual General Meeting of Shareholders scheduled to be held on May 12, 2022, to be filed with the Securities and Exchange Commission not later than 120 days after January 2, 2022, are incorporated by reference into Part III, Items 10-14 of this Annual Report on Form 10-K. | ||
Entity Central Index Key | 0000893691 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Jan. 02, 2022 | |
Audit Information [Abstract] | |
Auditor Firm ID | 42 |
Auditor Name | Ernst & Young LLP |
Auditor Location | Tampa, Florida |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net sales | $ 2,596,920 | $ 2,257,075 | $ 2,176,683 |
Cost of goods sold | 1,985,141 | 1,684,571 | 1,699,000 |
Gross profit | 611,779 | 572,504 | 477,683 |
Selling, general and administration expenses | 308,430 | 366,772 | 310,567 |
Restructuring costs | 5,567 | 8,236 | 9,776 |
Asset impairment | 69,900 | 51,515 | 13,767 |
Loss on disposal of subsidiaries | 8,590 | 2,091 | 14,260 |
Operating income | 219,292 | 143,890 | 129,313 |
Interest expense, net | 46,123 | 46,807 | 46,489 |
Loss on extinguishment of debt | 13,583 | 0 | 14,523 |
Other (income) expense, net | (15,620) | 5,217 | (1,953) |
Income before income tax expense | 143,966 | 102,300 | 66,348 |
Income tax expense | 44,772 | 28,611 | 17,309 |
Net income | 99,194 | 73,689 | 49,039 |
Less: net income attributable to non-controlling interests | 4,693 | 4,652 | 4,437 |
Net income attributable to Masonite | $ 94,501 | $ 69,037 | $ 44,602 |
Earnings (loss) per common share attributable to Masonite: | |||
Basic earnings per common share attributable to Masonite (in dollars per share) | $ 3.91 | $ 2.81 | $ 1.77 |
Diluted earnings per common share attributable to Masonite (in dollars per share) | $ 3.85 | $ 2.77 | $ 1.75 |
Other comprehensive income (loss): | |||
Net income | $ 99,194 | $ 73,689 | $ 49,039 |
Foreign currency translation (loss) gain | (3,175) | 19,820 | 16,912 |
Pension and other post-retirement adjustment | 2,250 | (3,163) | 962 |
Pension settlement charges | 15,654 | 0 | 5,651 |
Amortization of actuarial net losses | 1,336 | 1,002 | 1,798 |
Income tax (expense) benefit related to other comprehensive income (loss) | (5,518) | 632 | (2,230) |
Other comprehensive income, net of tax: | 10,547 | 18,291 | 23,093 |
Comprehensive income | 109,741 | 91,980 | 72,132 |
Less: comprehensive income attributable to non-controlling interests | 4,759 | 4,837 | 4,780 |
Comprehensive income attributable to Masonite | $ 104,982 | $ 87,143 | $ 67,352 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jan. 02, 2022 | Jan. 03, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 381,395 | $ 364,674 |
Restricted cash | 10,110 | 10,560 |
Accounts receivable, net | 343,414 | 290,508 |
Inventories, net | 347,476 | 260,962 |
Prepaid expenses and other assets | 50,399 | 42,538 |
Income taxes receivable | 1,332 | 1,124 |
Total current assets | 1,134,126 | 970,366 |
Property, plant and equipment, net | 626,797 | 625,126 |
Operating lease right-of-use assets | 176,445 | 146,806 |
Investment in equity investees | 14,994 | 14,636 |
Goodwill | 77,102 | 138,692 |
Intangible assets, net | 150,487 | 169,392 |
Deferred income taxes | 20,764 | 25,331 |
Other assets | 45,903 | 47,411 |
Total assets | 2,246,618 | 2,137,760 |
Current liabilities: | ||
Accounts payable | 138,788 | 97,211 |
Accrued expenses | 237,300 | 277,716 |
Income taxes payable | 8,551 | 11,086 |
Total current liabilities | 384,639 | 386,013 |
Long-term debt | 865,721 | 792,242 |
Long-term operating lease liabilities | 165,670 | 136,235 |
Deferred income taxes | 77,936 | 73,073 |
Other liabilities | 52,874 | 55,080 |
Total liabilities | 1,546,840 | 1,442,643 |
Commitments and Contingencies (Note 10) | ||
Equity: | ||
Share capital: unlimited shares authorized, no par value, 23,623,887 and 24,422,934 shares issued and outstanding as of January 2, 2022, and January 3, 2021, respectively | 543,400 | 552,969 |
Additional paid-in capital | 222,177 | 223,666 |
Retained earnings | 24,244 | 20,385 |
Accumulated other comprehensive loss | (101,582) | (112,063) |
Total equity attributable to Masonite | 688,239 | 684,957 |
Equity attributable to non-controlling interests | 11,539 | 10,160 |
Total equity | 699,778 | 695,117 |
Total liabilities and equity | $ 2,246,618 | $ 2,137,760 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - shares | Jan. 02, 2022 | Jan. 03, 2021 |
Statement of Financial Position [Abstract] | ||
Shares issued (in shares) | 23,623,887 | 24,422,934 |
Shares outstanding (in shares) | 23,623,887 | 24,422,934 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Total | Common Stock | Additional paid-in capital | Retained earnings (accumulated deficit) | Accumulated other comprehensive loss | Equity attributable to non-controlling 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] | ||||||
Share based compensation expense | 10,023 | |||||
Common shares issued for delivery of share based awards | 8,396 | (8,396) | ||||
Common shares withheld to cover income taxes payable due to delivery of share based awards | (3,852) | |||||
Common shares issued under employee stock purchase plan | 1,045 | (179) | ||||
Net income | 49,039 | 44,602 | 4,437 | |||
Common shares repurchased and retired | (26,134) | (33,813) | ||||
Other comprehensive income (loss), net of tax | 23,093 | 22,750 | 343 | |||
Dividends to non-controlling interests | (4,665) | |||||
Ending balance, value at Dec. 29, 2019 | 636,862 | $ 558,514 | 216,584 | (20,047) | (130,169) | 11,980 |
Opening balance (in shares) at Dec. 30, 2018 | 25,835,664 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common shares issued for delivery of share based awards (in shares) | 186,242 | |||||
Common shares issued under employee stock purchase plan (in shares) | 18,940 | |||||
Common shares repurchased and retired (in shares) | (1,170,925) | |||||
Ending balance (in shares) at Dec. 29, 2019 | 24,869,921 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Share based compensation expense | 19,423 | |||||
Common shares issued for delivery of share based awards | $ 8,269 | (8,269) | ||||
Common shares withheld to cover income taxes payable due to delivery of share based awards | (3,623) | |||||
Common shares issued under employee stock purchase plan | 1,305 | (449) | ||||
Net income | 73,689 | 69,037 | 4,652 | |||
Common shares repurchased and retired | (15,119) | (28,605) | ||||
Other comprehensive income (loss), net of tax | 18,291 | 18,106 | 185 | |||
Dividends to non-controlling interests | (6,657) | |||||
Ending balance, value at Jan. 03, 2021 | $ 695,117 | $ 552,969 | 223,666 | 20,385 | (112,063) | 10,160 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common shares issued for delivery of share based awards (in shares) | 209,407 | |||||
Common shares issued under employee stock purchase plan (in shares) | 16,505 | |||||
Common shares repurchased and retired (in shares) | (672,899) | |||||
Ending balance (in shares) at Jan. 03, 2021 | 24,422,934 | 24,422,934 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Share based compensation expense | 15,959 | |||||
Common shares issued for delivery of share based awards | $ 12,125 | (12,125) | ||||
Common shares withheld to cover income taxes payable due to delivery of share based awards | (5,001) | |||||
Common shares issued under employee stock purchase plan | 1,593 | (322) | ||||
Net income | $ 99,194 | 94,501 | 4,693 | |||
Common shares repurchased and retired | (23,287) | (90,642) | ||||
Other comprehensive income (loss), net of tax | 10,547 | 10,481 | 66 | |||
Dividends to non-controlling interests | (3,380) | |||||
Ending balance, value at Jan. 02, 2022 | $ 699,778 | $ 543,400 | $ 222,177 | $ 24,244 | $ (101,582) | $ 11,539 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common shares issued for delivery of share based awards (in shares) | 199,865 | |||||
Common shares issued under employee stock purchase plan (in shares) | 15,091 | |||||
Common shares repurchased and retired (in shares) | (1,014,003) | |||||
Ending balance (in shares) at Jan. 02, 2022 | 23,623,887 | 23,623,887 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Cash flows from operating activities: | |||
Net income | $ 99,194 | $ 73,689 | $ 49,039 |
Adjustments to reconcile net income to net cash flow provided by operating activities: | |||
Loss on disposal of subsidiaries | 8,590 | 2,091 | 14,260 |
Loss on extinguishment of debt | 13,583 | 0 | 14,523 |
Depreciation | 70,641 | 68,350 | 70,736 |
Amortization | 21,341 | 23,423 | 29,113 |
Share based compensation expense | 15,959 | 19,423 | 10,023 |
Deferred income taxes | 4,881 | (10,085) | 3,292 |
Unrealized foreign exchange (gain) loss | (1,244) | (324) | 320 |
Share of income from equity investees, net of tax | (4,858) | (2,811) | (2,626) |
Dividend from equity investee | 4,500 | 4,275 | 0 |
Pension and post-retirement funding, net of expense | 15,448 | (4,654) | (827) |
Non-cash accruals and interest | 1,678 | 1,601 | 57 |
Loss on sale of property, plant and equipment | 1,316 | 6,234 | 6,396 |
Asset impairment | 69,900 | 51,515 | 13,767 |
Changes in assets and liabilities, net of acquisitions: | |||
Accounts receivable | (56,831) | (13,006) | 6,723 |
Inventories | (92,641) | (15,568) | 5,735 |
Prepaid expenses and other assets | (8,021) | (9,179) | (332) |
Accounts payable and accrued expenses | 1,473 | 107,129 | 4,742 |
Other assets and liabilities | (8,452) | 19,077 | (3,285) |
Net cash flow provided by operating activities | 156,457 | 321,180 | 221,656 |
Cash flows from investing activities: | |||
Additions to property, plant and equipment | (86,670) | (72,908) | (82,720) |
Acquisition of businesses, net of cash acquired | (160) | (5,814) | (2,029) |
Proceeds from sale of subsidiaries, net of cash disposed | 7,001 | 0 | 1,001 |
Proceeds from sale of property, plant and equipment | 6,027 | 7,362 | 3,640 |
Other investing activities | (2,340) | (2,530) | (2,018) |
Net cash flow used in investing activities | (76,142) | (73,890) | (82,126) |
Cash flows from financing activities: | |||
Proceeds from issuance of long-term debt | 375,000 | 0 | 500,000 |
Repayments of long-term debt | (300,945) | (57) | (500,177) |
Payment of debt extinguishment costs | (10,810) | 0 | (14,065) |
Payment of debt issuance costs | (4,672) | 0 | (6,701) |
Tax withholding on share based awards | (5,001) | (3,623) | (3,852) |
Distributions to non-controlling interests | (3,380) | (6,657) | (4,665) |
Repurchases of common shares | (113,929) | (43,724) | (59,947) |
Net cash flow used in financing activities | (63,737) | (54,061) | (89,407) |
Net foreign currency translation adjustment on cash | (307) | 4,397 | 1,344 |
Increase in cash, cash equivalents and restricted cash | 16,271 | 197,626 | 51,467 |
Cash, cash equivalents and restricted cash, beginning of period | 375,234 | 177,608 | 126,141 |
Cash, cash equivalents and restricted cash, at end of period | $ 391,505 | $ 375,234 | $ 177,608 |
Business Overview and Significa
Business Overview and Significant Accounting Policies | 12 Months Ended |
Jan. 02, 2022 | |
Accounting Policies [Abstract] | |
Business Overview and Significant Accounting Policies | Business Overview and Significant Accounting Policies Unless we state otherwise or the context otherwise requires, references to "Masonite," "we," "our," "us" and the "Company" in these notes to the consolidated financial statements refer to Masonite International Corporation and its subsidiaries. Description of Business Masonite International Corporation is one of the largest manufacturers of doors in the world, with significant market share in both interior and exterior door products. Masonite operates 58 manufacturing locations in seven countries and sells doors to customers throughout the world, including the United States, Canada and the United Kingdom. Basis of Presentation We prepare these consolidated financial statements in accordance with accounting principles generally accepted in the United States of America ("GAAP"). These consolidated financial statements include the accounts of Masonite International Corporation, a company incorporated under the laws of British Columbia, and its subsidiaries, as of January 2, 2022, and January 3, 2021, and for the years ended January 2, 2022, January 3, 2021, and December 29, 2019. Our fiscal year is the 52- or 53-week period ending on the Sunday closest to December 31. In a 52-week year, each fiscal quarter consists of 13 weeks. For ease of disclosure, the 13-week periods are referred to as three-month periods and the 52- or 53-week periods are referred to as years. Our 2020 fiscal year, which ended on January 3, 2021, contained 53 weeks of operating results, with the additional week occurring in the fourth quarter. Changes in Accounting Standards and Policies Adoption of Recent Accounting Pronouncements 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. We have adopted the new guidance prospectively as of January 4, 2021, the beginning of fiscal year 2021, and the adoption did not have a material impact 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 is effective for annual periods ending after December 15, 2020; early adoption is permitted and retrospective application is required. We adopted the new guidance using a retrospective approach as of January 3, 2021, the end of fiscal year 2020, and the adoption did not have a material impact on our financial statements or disclosures. In June 2016, the FASB issued ASU 2016-13, "Financial Instruments—Credit Losses (Topic 326)," which replaces the incurred loss methodology for recognizing credit losses with a current expected credit losses model. This standard applies to all financial assets, including trade receivables. Our current accounts receivable policy is described in detail in Note 1 and uses historical, current and forecasted information to estimate all expected credit losses in our existing account receivable balances. The guidance is effective for annual periods beginning after December 15, 2019, including interim periods within those fiscal years; early adoption is permitted and modified retrospective application is required. We adopted the new guidance using a modified retrospective approach as of December 31, 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 31, 2019. Other Recent Accounting Pronouncements not yet Adopted In December 2021, the FASB issued ASU 2021-10, "Government Assistance," which requires annual disclosures that increase the transparency of transactions involving government grants, including (1) the types of transactions, (2) the accounting for those transactions and (3) the effect of those transactions on an entity's financial statements. The guidance is effective for annual periods beginning after December 15, 2021, with early adoption permitted. We are in the process of evaluating this guidance to determine the impact it may have on our financial statements. Summary of Significant Accounting Policies (a) Principles of consolidation: These consolidated financial statements include the accounts of Masonite and our subsidiaries and the accounts of any variable interest entities for which we are the primary beneficiary. Intercompany accounts and transactions have been eliminated upon consolidation. The results of subsidiaries acquired during the periods presented are consolidated from their respective dates of acquisition using the acquisition method. Subsidiaries are prospectively deconsolidated as of the date when we no longer have effective control of the entity. (b) Translation of consolidated financial statements into U.S. dollars: These consolidated financial statements are expressed in U.S. dollars. The accounts of the majority of our self-sustaining foreign operations are maintained in functional currencies other than the U.S. dollar. Assets and liabilities for these subsidiaries have been translated into U.S. dollars at the exchange rates prevailing at the end of the period and results of operations at the average exchange rates for the period. Unrealized exchange gains and losses arising from the translation of the financial statements of our non-U.S. functional currency operations are accumulated in the cumulative translation adjustments account in accumulated other comprehensive loss. For our foreign subsidiaries where the U.S. dollar is the functional currency, all foreign currency-denominated accounts are remeasured into U.S. dollars. Unrealized exchange gains and losses arising from remeasurements of foreign currency-denominated assets and liabilities are included within other (income) expense, net in the consolidated statements of income and comprehensive income. Gains and losses arising from international intercompany transactions that are of a long-term investment nature are reported in the same manner as translation gains and losses. Realized exchange gains and losses are included in net income for the periods presented. (c) Cash and cash equivalents: Cash includes cash equivalents which are short-term highly liquid investments with original maturities of three months or less. (d) Restricted cash: Restricted cash includes cash we have placed as collateral for standby letters of credit. The letters of credit guarantee payment to third parties in the event the company is in breach of contract terms as detailed in each letter of credit. As of January 2, 2022, and January 3, 2021, we had standby letters of credit totaling $2.6 million and $2.5 million, respectively. There were no amounts drawn upon these letters of credit as of January 2, 2022, or January 3, 2021. (e) Accounts receivable: 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 the 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 income and comprehensive income. Generally, we do not require collateral for our accounts receivable. (f) Inventories: Raw materials and finished goods are valued at the lower of cost or net realizable value. Cost is determined on a first in, first out basis. In determining the net realizable value, we consider factors such as yield, turnover, expected future demand and past experience. The cost of inventories includes all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition. The costs of conversion of inventories include costs directly related to the units of production, such as direct labor. They also include a systematic allocation of fixed and variable production overheads that are incurred in converting raw materials into finished goods. Fixed production overheads are those indirect costs of production that remain relatively constant regardless of the volume of production, such as depreciation and maintenance of factory buildings and equipment, and the cost of factory management and administration. Variable production overheads are those indirect costs of production that vary directly, or nearly directly, with the volume of production, such as indirect materials and indirect labor. To determine the cost of inventory, we allocate fixed expenses to the cost of production based on the normal capacity, which refers to a range of production levels and is considered the production expected to be achieved over a number of periods or seasons under normal circumstances, taking into account the loss of capacity resulting from planned maintenance. Fixed overhead costs allocated to each unit of production are not increased due to abnormally low production. Those excess costs are recognized as a current period expense. When a production facility is completely shut down temporarily, it is considered idle, and all related expenses are charged to cost of goods sold. (g) Property, plant and equipment: Property, plant and equipment are stated at cost. Depreciation is recorded based on the carrying values of buildings, machinery and equipment using the straight-line method over the estimated useful lives set forth as follows: Useful Life (Years) Buildings 20 - 40 Machinery and equipment Tooling 10 - 25 Machinery and equipment 5 - 25 Molds and dies 12 - 25 Office equipment, fixtures and fittings 3 - 12 Information technology systems 5 - 15 Improvements and major maintenance that extend the life of an asset are capitalized; other repairs and maintenance are expensed as incurred. When assets are retired or otherwise disposed, their carrying values and accumulated depreciation are removed from the accounts. Property, plant and equipment are tested for impairment when events or changes in circumstances indicate that the carrying value of an asset or asset group may not be recoverable. An impairment loss is recognized when the carrying amount of an asset or asset group being tested for recoverability exceeds the sum of the undiscounted cash flows expected from its use and disposal. Impairments are measured as the amount by which the carrying amount of the asset or asset group exceeds its fair value, as determined using a discounted cash flows approach when quoted market prices are not available. (h) Leases: We determine if a contract is a lease at inception or upon acquisition and reevaluate each time a lease contract is amended or otherwise modified. A lease will be classified as an operating lease if it does not meet any of the criteria for a finance lease. Those criteria include the transfer of ownership of the underlying asset by the end of the lease term; an option to purchase the underlying asset that we would be reasonably certain to exercise; the lease term is for the major part of the remaining economic life of the underlying asset; the present value of the sum of the lease payments and any residual value guaranteed by us that is not already reflected in the lease payments equals or exceeds substantially all of the fair value of the underlying asset or if the underlying asset is of such a specialized nature that it is expected to have no alternative use to the lessor at the end of the lease term. The assets and liabilities relating to operating leases are included in operating lease right-of-use assets, accrued expenses, and long-term operating lease liabilities in our consolidated balance sheets. The assets and liabilities relating to finance leases are included in property, plant and equipment, net and other liabilities in our consolidated balance sheets. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the respective lease commencement date based on the present value of lease payments over the expected lease term. Since our leases do not specify implicit discount rates, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The operating lease ROU asset also includes any initial direct costs and is adjusted for lease incentives and prepaid or accrued rent. The lease term begins on the date when the lessor makes the underlying asset available for use to us, and our expected lease terms include options to extend the lease when it is reasonably certain that we will exercise those options. Lease payments are recognized in the consolidated statements of income and comprehensive income on a straight-line basis over the expected lease term. Leases with an initial term of 12 months or less are not recorded on the balance sheet, with the related lease expense recognized on a straight-line basis over the lease term. Lease and non-lease components of a contract are combined into a single lease component for accounting purposes. Our operating leases include leases for real estate (including manufacturing sites, warehouses and offices) and machinery and equipment and our finance leases include leases for real estate. We have no material subleases. Certain of our operating leases contain provisions for renewal ranging from one to four options of one (i) Goodwill: We use the acquisition method of accounting for all business combinations, and we evaluate all business combinations for intangible assets that should be recognized apart from goodwill. Goodwill adjustments are recorded for the effect on goodwill of changes to net assets acquired during the measurement period (up to one year from the date of acquisition) for new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date. Goodwill is not amortized, but instead is tested annually for impairment on the last day of fiscal November, or more frequently if events or changes in circumstances indicate the carrying amount may not be recoverable. The test for impairment is performed at the reporting unit level by comparing the reporting unit’s carrying amount to its fair value. Possible impairment in goodwill is first analyzed using qualitative factors such as macroeconomic and market conditions, changing costs and actual and projected performance, amongst others, to determine whether it is more likely than not that the book value of the reporting unit exceeds its fair value. If it is determined more likely than not that the book value exceeds fair value, a quantitative analysis is performed to test for impairment. When quantitative steps are determined necessary, the fair values of the reporting units are estimated through the use of discounted cash flow analysis and market multiples. If the carrying amount exceeds fair value, then goodwill is impaired. Any impairment in goodwill is measured as the excess of the carrying value of goodwill over the fair value. In 2021 and 2020, we recorded $59.5 million and $51.5 million, respectively, in impairment charges related to the Architectural reporting unit. See Note 14 for further information. There were no impairment charges recorded against goodwill in 2019. When developing our discounted cash flow analyses, a number of assumptions and estimates are involved to forecast operating cash flows, including future net sales growth, EBITDA margin growth, benefits from restructuring initiatives, income tax rates, capital spending, business initiatives and working capital changes. These assumptions may vary significantly among the reporting units. Operating cash flow forecasts are based on operating plans for the early years and historical relationships and long-term economic outlooks for our industry in later years. The discount rate is estimated for each specific reporting unit. Due to the many variables inherent in the estimation of a reporting unit’s fair value and the relative size of our recorded goodwill, differences in assumptions may have a material effect on the results of our impairment analyses. (j) Intangible assets: Intangible assets with definite lives include customer relationships, patents, system software development and acquired trademarks and tradenames. Definite lived intangible assets are amortized over their estimated useful lives. Information pertaining to the estimated useful lives of intangible assets is as follows: Estimated Useful Life Customer relationships Over expected relationship period Patents Over expected useful life System software development Over expected useful life Acquired trademarks and tradenames Straight-line over expected useful life Amortizable intangible assets are tested for impairment whenever events or changes in circumstances indicate that the carrying value may be greater than fair value. An impairment loss is recognized when the estimate of undiscounted future cash flows generated by such assets is less than the carrying amount. Measurement of the impairment loss is based on the fair value of the asset. Fair value is measured using discounted cash flows. Indefinite lived intangible assets are not amortized, but instead are tested for impairment annually on the last day of fiscal November, or more frequently if events or circumstances indicate the carrying value may exceed the fair value. (k) Income taxes: We use the asset and liability method of accounting for income taxes. Under the asset and liability method, deferred tax assets and liabilities are recognized for the deferred tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities due to a change in tax rates is recognized in income in the period that includes the date of enactment. A valuation allowance is recorded to reduce deferred tax assets to an amount that is anticipated to be realized on a more likely than not basis. We account for uncertain taxes in accordance with ASC 740, "Income Taxes." The initial benefit recognition model follows a two-step approach. First, we evaluate if the tax position is more likely than not of being sustained if audited based solely on the technical merits of the position. Second, we measure the appropriate amount of benefit to recognize. This is calculated as the largest amount of tax benefit that has a greater than 50% likelihood of ultimately being realized upon settlement. Subsequently at each reporting date, the largest amount that has a greater than 50% likelihood of ultimately being realized, based on information available at that date, will be measured and recognized. We recognize interest and penalties related to unrecognized tax benefits within the income tax expense line in the consolidated statements of income and comprehensive income. Accrued interest and penalties are included within the related tax liability line in the consolidated balance sheets. (l) Employee future benefits: We maintain defined benefit pension plans. Benefits under the plans were frozen or curtailed at various times in the past. Earnings are charged with the cost of benefits earned by employees as services are rendered. The cost reflects management’s best estimates of the pension plans’ expected investment yields, wage and salary escalation, mortality of members, terminations and the ages at which members will retire. Changes in these assumptions could impact future pension expense. Service cost components are recognized within cost of goods sold and non-service cost components are recognized within other (income) expense, net in the consolidated statements of income and comprehensive income. The excess of the net actuarial gain (loss) over 10% of the greater of the benefit obligation or fair value of plan assets at the beginning of the year is amortized over the average remaining service lives of the members. Assets are valued at fair value for the purpose of calculating the expected return on plan assets. Past service costs arising from plan amendments are amortized on a straight-line basis over the average remaining service period of employees active at the date of amendment. When a restructuring of a benefit plan gives rise to both a curtailment and a settlement of obligations, the curtailment is accounted for prior to the settlement. Curtailment gains are offset against unrecognized losses and any excess gains and all curtailment losses are recorded in the period in which the curtailment occurs. (m) Restructuring costs: Restructuring costs include all salary-related severance benefits that are accrued and expensed when a restructuring plan has been put into place, the plan has received approval from the appropriate level of management and the benefit is probable and reasonably estimable. In addition to salary-related costs, we incur other restructuring costs when facilities are closed or capacity is realigned within the organization. Upon termination of a contract we record liabilities and expenses pursuant to the terms of the relevant agreement. For non-contractual restructuring activities, liabilities and expenses are measured and recorded at fair value in the period in which they are incurred. Restructuring-related costs are presented separately in the consolidated statements of income and comprehensive income whereas non-restructuring severance benefits are charged to cost of goods sold or selling, general and administration expense depending on the nature of the job responsibilities. (n) Financial instruments: We have applied a framework consistent with ASC 820, "Fair Value Measurement and Disclosure," and have disclosed all financial assets and liabilities measured at fair value and non-financial assets and liabilities measured at fair value on a non-recurring basis (at least annually). We classify and disclose assets and liabilities carried at fair value in one of the following three categories: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs that are not corroborated by market data. The estimated fair value of a financial instrument is the amount at which the instrument could be exchanged in a current transaction between willing parties, other than a forced or liquidation sale. These estimates, although based on the relevant market information about the financial instrument, are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. (o) Share based compensation expense: We have a share based compensation plan, which is described in detail in Note 12. We apply the fair value method of accounting using comprehensive valuation models, including the Black-Scholes-Merton option pricing model, to determine the compensation expense. (p) Revenue recognition: Revenue from the sale of products is recognized when control of the promised goods is transferred to our customers based on the agreed-upon shipping terms, in an amount that reflects the consideration to which we expect to be entitled in exchange for those goods or services. Volume rebates, expected returns, discounts and other incentives to customers are considered variable consideration and we estimate these amounts based on the expected amount to be provided to customers and reduce the revenues we recognize accordingly. Sales taxes and value added taxes assessed by governmental entities are excluded from the measurement of consideration expected to be received. Shipping and handling costs incurred after a customer has taken possession of our goods are treated as a fulfillment cost and are not considered a separate performance obligation. Shipping and other transportation costs charged to customers are recorded in both revenues and cost of goods sold in the consolidated statements of income and comprehensive income. (q) Product warranties: We warrant certain qualitative attributes of our door products. We have recorded provisions for estimated warranty and related costs within accrued expenses on the consolidated balance sheets, based on historical experience and we periodically adjust these provisions to reflect actual experience. The rollforward of our warranty provision is as follows for the periods indicated: Year Ended (In thousands) January 2, 2022 January 3, 2021 December 29, 2019 Balance at beginning of period $ 4,635 $ 4,414 $ 4,270 Additions charged to expense 4,646 6,807 7,142 Deductions (5,266) (6,586) (6,998) Balance at end of period $ 4,015 $ 4,635 $ 4,414 (r) Vendor rebates: We account for cash consideration received from a vendor as a reduction of cost of goods sold and inventory, in the consolidated statements of income and comprehensive income and consolidated balance sheets, respectively. The cash consideration received represents agreed-upon vendor rebates that are earned in the normal course of operations. (s) Advertising costs: We recognize advertising costs as they are incurred. Advertising costs incurred primarily relate to tradeshows and are included within selling, general and administration expense in the consolidated statements of income and comprehensive income. Advertising costs were $14.2 million, $10.8 million and $14.2 million in the years ended January 2, 2022, January 3, 2021, and December 29, 2019, respectively. (t) Research and development costs: We recognize research and development costs as they are incurred. Research and development costs incurred primarily relate to the development of new products and the improvement of manufacturing processes, and are primarily included within cost of goods sold in the consolidated statements of income and comprehensive income. These costs exclude the significant investments in other areas such as advanced automation. Research and development costs were $18.4 million, $17.0 million and $7.2 million in the years ended January 2, 2022, January 3, 2021, and December 29, 2019, respectively. (u) Insurance losses and proceeds: All involuntary conversions of property, plant and equipment are recorded as losses within loss (gain) on disposal of property, plant and equipment, which is included within selling, general and administration expense in the consolidated statements of income and comprehensive income and as reductions to property, plant and equipment in the consolidated balance sheets. Any subsequent proceeds received for insured losses of property, plant and equipment are also recorded as gains within loss (gain) on disposal of property, plant and equipment, and are classified as cash flows from investing activities in the consolidated statements of cash flows in the period in which the cash is received. Proceeds received for business interruption recoveries are recorded as a reduction to selling, general and administration expense in the consolidated statements of income and comprehensive income and are classified as cash flows from operating activities in the consolidated statements of cash flows in the period in which an acknowledgment from the insurance carrier of settlement or partial settlement of a non-refundable nature has been presented to us. (v) Equity investments: We account for investments in affiliates of between 20% and 50% ownership, over which we have significant influence, using the equity method. We record our share of earnings of the affiliate within other income, net of expense, in the consolidated statements of income and comprehensive income and dividends as a reduction of the investment in the affiliate in the consolidated balance sheets when declared. (w) Segment reporting: 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 that 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. (x) Use of estimates: The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions which affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of net sales and expenses during the reporting periods. During 2021, there were no material changes in the methods or policies used to establish estimates and assumptions. Actual results may differ from our estimates. |
Acquisitions and Divestitures
Acquisitions and Divestitures | 12 Months Ended |
Jan. 02, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions and Divestitures | Acquisitions and Divestitures Acquisitions On December 4, 2020, we completed the acquisition of a Lowe's Companies, Inc. door fabrication facility in the United States for cash consideration of $3.9 million. During the first quarter of 2021, as a result of the working capital adjustments we paid an additional $0.2 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 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 $1.6 million, net of cash acquired. 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 On June 14, 2021, we completed the sale of all the capital stock of our Czech business ("Czech") for consideration of $7.0 million, net of cash disposed. The divestiture of this business resulted in a loss on disposal of subsidiaries of $8.6 million, which was recognized in the second quarter of 2021 in the Europe segment. The total charge consisted of $5.1 million relating to the write-off of the net assets sold and other professional fees and $3.5 million relating to the recognition of the cumulative translation adjustment out of accumulated other comprehensive loss. 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 and will continue to have no continuing involvement with WW subsequent to the sale. The disposition of this business resulted in a loss on disposal of subsidiaries of $9.7 million, which was recognized in 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 the capital stock of Performance Doorset Solutions Limited ("PDS") for nominal consideration. We have had and will continue to have no continuing involvement with PDS subsequent to the sale, and the purchasers are not considered to be a related party. The disposition of this business resulted in a loss on disposal of subsidiaries of $4.6 million, which was recognized in 2019 in the Europe segment. The total charge consists of $3.6 million relating to the write-off of the assets sold and other professional fees and $1.0 million relating to the recognition of the cumulative translation adjustment out of accumulated other comprehensive loss. |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Jan. 02, 2022 | |
Receivables [Abstract] | |
Accounts Receivable | Accounts Receivable Our customers consist mainly of retailers, distributors and contractors. Our ten largest customers accounted for 56.7% and 53.1% of total accounts receivable as of January 2, 2022, and January 3, 2021, respectively. Our largest customer, The Home Depot, Inc. accounted for more than 10% of the consolidated gross accounts receivable balance as of January 2, 2022, and January 3, 2021. No other individual customer accounted for greater than 10% of the consolidated gross accounts receivable balance at either January 2, 2022, or January 3, 2021. The changes in the allowance for doubtful accounts were as follows for the periods indicated: Year Ended (In thousands) January 2, 2022 January 3, 2021 December 29, 2019 Balance at beginning of period $ 2,809 $ 1,752 $ 2,109 Additions charged to expense 242 1,443 78 Deductions (964) (386) (435) Balance at end of period $ 2,087 $ 2,809 $ 1,752 We maintain an accounts receivable sales program with a third party (the "AR Sales Program"). Under the AR Sales Program, we can transfer ownership of eligible trade accounts receivable of certain customers. Receivables are sold outright to a third party who assumes the full risk of collection, without recourse to us in the event of a loss. Transfers of receivables under this program are accounted for as sales. Proceeds from the transfers reflect the face value of the accounts receivable less a discount. Receivables sold under the AR Sales Program are excluded from trade accounts receivable in the consolidated balance sheets and are included in cash flows from operating activities in the consolidated statements of cash flows. The discounts on the sales of trade accounts receivable sold under the AR Sales Program were not material for any of the periods presented and were recorded in selling, general and administration expense within the consolidated statements of income and comprehensive income. |
Inventories
Inventories | 12 Months Ended |
Jan. 02, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories The amounts of inventory on hand were as follows as of the dates indicated: (In thousands) January 2, 2022 January 3, 2021 Raw materials $ 275,269 $ 191,784 Finished goods 78,324 75,483 Provision for obsolete or aged inventory (6,117) (6,305) Inventories, net $ 347,476 $ 260,962 We carry an inventory provision which is the result of obsolete or aged inventory. The rollforward of our inventory provision is as follows for the periods indicated: Year Ended (In thousands) January 2, 2022 January 3, 2021 December 29, 2019 Balance at beginning of period $ 6,305 $ 7,136 $ 7,764 Additions charged to expense 3,402 5,150 4,159 Deductions (3,590) (5,981) (4,787) Balance at end of period $ 6,117 $ 6,305 $ 7,136 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Jan. 02, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment The carrying amounts of our property, plant and equipment and accumulated depreciation were as follows as of the dates indicated: (In thousands) January 2, 2022 January 3, 2021 Land $ 22,851 $ 25,572 Buildings 216,510 215,600 Machinery and equipment 783,913 757,289 Property, plant and equipment, gross 1,023,274 998,461 Accumulated depreciation (396,477) (373,335) Property, plant and equipment, net $ 626,797 $ 625,126 Total depreciation expense was $70.6 million, $68.4 million, and $70.7 million for the years ended January 2, 2022, January 3, 2021, and December 29, 2019, respectively. Depreciation expense is included primarily within cost of goods sold in the consolidated statements of income and comprehensive income. |
Leases
Leases | 12 Months Ended |
Jan. 02, 2022 | |
Leases [Abstract] | |
Leases | Leases The following table summarizes the components of lease expense recorded in the consolidated statements of income and comprehensive income for the periods indicated: (In thousands) Year Ended January 2, 2022 January 3, 2021 December 29, 2019 Operating lease expense $ 47,263 $ 38,922 $ 39,025 Finance lease expense Amortization of leased assets 865 882 649 Interest on lease liabilities 1,443 1,458 1,063 Total lease expense $ 49,571 $ 41,262 $ 40,737 The following table includes a detail of lease assets and liabilities included in the consolidated balance sheet as of the period indicated: (In thousands) January 2, 2022 January 3, 2021 Operating lease right-of-use assets $ 176,445 $ 146,806 Finance lease right-of-use assets (1) 23,931 24,796 Total lease assets, net $ 200,376 $ 171,602 Current portion of operating lease liabilities $ 25,551 $ 22,667 Long-term operating lease liabilities 165,670 136,235 Long-term finance lease liabilities 27,043 26,926 Total lease liabilities $ 218,264 $ 185,828 ____________ (1) Net of accumulated amortization of $2.4 million and $1.5 million, as of January 2, 2022 , and January 3, 2021 , respectively. The following table is a summary of the weighted-average remaining lease terms and weighted-average discount rates of the Company's leases as of the period indicated: January 2, 2022 January 3, 2021 Weighted-average remaining lease term (years) Operating leases 11.8 10.4 Finance leases 27.6 28.6 Weighted-average discount rate (1) Operating leases 4.1 % 4.4 % Finance leases 5.4 % 5.4 % ____________ (1) Based on the Company's incremental borrowing rate at lease commencement or modification. As of January 2, 2022, the future minimum lease payments under non-cancelable leases are as follows: (In thousands) Operating Leases Finance Leases Fiscal year: 2022 $ 32,546 $ 1,365 2023 28,344 1,287 2024 25,829 1,445 2025 22,622 1,488 2026 16,105 1,663 Thereafter 125,751 49,831 Total minimum lease payments 251,197 57,079 Less imputed interest (59,976) (30,036) Present value of future lease payments $ 191,221 $ 27,043 As of January 2, 2022, we had no additional undiscounted commitments for operating leases that had not yet commenced. |
Leases | Leases The following table summarizes the components of lease expense recorded in the consolidated statements of income and comprehensive income for the periods indicated: (In thousands) Year Ended January 2, 2022 January 3, 2021 December 29, 2019 Operating lease expense $ 47,263 $ 38,922 $ 39,025 Finance lease expense Amortization of leased assets 865 882 649 Interest on lease liabilities 1,443 1,458 1,063 Total lease expense $ 49,571 $ 41,262 $ 40,737 The following table includes a detail of lease assets and liabilities included in the consolidated balance sheet as of the period indicated: (In thousands) January 2, 2022 January 3, 2021 Operating lease right-of-use assets $ 176,445 $ 146,806 Finance lease right-of-use assets (1) 23,931 24,796 Total lease assets, net $ 200,376 $ 171,602 Current portion of operating lease liabilities $ 25,551 $ 22,667 Long-term operating lease liabilities 165,670 136,235 Long-term finance lease liabilities 27,043 26,926 Total lease liabilities $ 218,264 $ 185,828 ____________ (1) Net of accumulated amortization of $2.4 million and $1.5 million, as of January 2, 2022 , and January 3, 2021 , respectively. The following table is a summary of the weighted-average remaining lease terms and weighted-average discount rates of the Company's leases as of the period indicated: January 2, 2022 January 3, 2021 Weighted-average remaining lease term (years) Operating leases 11.8 10.4 Finance leases 27.6 28.6 Weighted-average discount rate (1) Operating leases 4.1 % 4.4 % Finance leases 5.4 % 5.4 % ____________ (1) Based on the Company's incremental borrowing rate at lease commencement or modification. As of January 2, 2022, the future minimum lease payments under non-cancelable leases are as follows: (In thousands) Operating Leases Finance Leases Fiscal year: 2022 $ 32,546 $ 1,365 2023 28,344 1,287 2024 25,829 1,445 2025 22,622 1,488 2026 16,105 1,663 Thereafter 125,751 49,831 Total minimum lease payments 251,197 57,079 Less imputed interest (59,976) (30,036) Present value of future lease payments $ 191,221 $ 27,043 As of January 2, 2022, we had no additional undiscounted commitments for operating leases that had not yet commenced. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Jan. 02, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Changes in the carrying amount of goodwill were as follows as of the dates indicated: (In thousands) North American Residential Europe Architectural Total December 29, 2019 $ 6,590 $ 66,602 $ 111,000 $ 184,192 Goodwill from 2020 acquisitions 3,132 — — 3,132 Goodwill impairment — — (51,515) (51,515) Foreign exchange fluctuations 8 2,837 38 2,883 January 3, 2021 9,730 69,439 59,523 138,692 Measurement period adjustment 160 — — 160 Goodwill related to 2021 divestiture — (1,395) — (1,395) Goodwill impairment — — (59,526) (59,526) Foreign exchange fluctuations 3 (835) 3 (829) January 2, 2022 $ 9,893 $ 67,209 $ — $ 77,102 Gross goodwill before cumulative impairment charges in the Architectural reporting unit was $111.0 million as of January 2, 2022, January 3, 2021, and December 29, 2019. In the third quarter of 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. A goodwill impairment charge of $51.5 million was recorded to selling, general and administration expenses. 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. See Note 14 for further information. We performed an annual qualitative impairment test of each of our reporting units during the fourth quarter of 2021. As a result of manufacturing constraints in the Architectural reporting unit in the current year due to COVID-19 related absenteeism, material availability and production challenges, a goodwill impairment charge of $59.5 million was recorded to selling, general and administration expenses. 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 $59.5 million to zero. See Note 14 for further information. The cost and accumulated amortization values of our intangible assets were as follows as of the dates indicated: January 2, 2022 January 3, 2021 (In thousands) Cost Accumulated Amortization Net Book Value Cost Accumulated Amortization Net Book Value Definite life intangible assets: Customer relationships $ 176,779 $ (132,840) $ 43,939 $ 178,078 $ (119,689) $ 58,389 Patents 34,438 (28,148) 6,290 33,573 (26,211) 7,362 Software 36,354 (33,281) 3,073 35,620 (33,041) 2,579 Trademarks and tradenames 34,210 (14,063) 20,147 34,604 (10,862) 23,742 Other 94 (94) — 966 (964) 2 Total definite life intangible assets 281,875 (208,426) 73,449 282,841 (190,767) 92,074 Indefinite life intangible assets: Trademarks and tradenames 77,038 — 77,038 77,318 — 77,318 Total intangible assets $ 358,913 $ (208,426) $ 150,487 $ 360,159 $ (190,767) $ 169,392 Amortization of intangible assets was $20.2 million, $22.2 million and $28.2 million for the years ended January 2, 2022, January 3, 2021, and December 29, 2019 respectively. Amortization expense is classified within selling, general and administration expenses in the consolidated statements of income and comprehensive income. The estimated future amortization of intangible assets with definite lives as of January 2, 2022, is as follows: (In thousands) Fiscal year: 2022 $ 16,594 2023 15,099 2024 13,521 2025 11,318 2026 7,957 |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Jan. 02, 2022 | |
Accrued Expenses [Abstract] | |
Accrued Expenses | Accrued Expenses The details of our accrued expenses were as follows as of the dates indicated: (In thousands) January 2, 2022 January 3, 2021 Accrued payroll $ 66,048 $ 86,517 Accrued rebates 51,200 49,531 Current portion of operating lease liabilities 25,551 22,667 Accrued interest 17,125 16,435 Accrued legal settlement — 40,000 Other accruals 77,376 62,566 Total accrued expenses $ 237,300 $ 277,716 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Jan. 02, 2022 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt (In thousands) January 2, 2022 January 3, 2021 3.50% senior unsecured notes due 2030 $ 375,000 $ — 5.375% senior unsecured notes due 2028 500,000 500,000 5.750% senior unsecured notes due 2026 — 300,000 Debt issuance costs (9,279) (8,694) Other long-term debt — 936 Total long-term debt $ 865,721 $ 792,242 Interest expense on our long-term debt was $43.9 million, $45.5 million and $46.1 million for years ended January 2, 2022, January 3, 2021, and December 29, 2019, respectively, and primarily related to our consolidated indebtedness under senior unsecured notes. Debt issuance costs incurred in connection with the 2028 Notes and the 2026 Notes were capitalized as a reduction to the carrying value of debt and are being accreted to interest expense over their respective terms. Additionally, we pay interest on any outstanding principal under our ABL Facility and we are required to pay a commitment fee for unutilized commitments under the ABL Facility, both of which are recorded in interest expense as incurred. 3.50% Senior Notes due 2030 On July 26, 2021, we issued $375.0 million aggregate principal senior unsecured notes (the "2030 Notes"). The 2030 Notes were issued in a private placement for resale to qualified institutional buyers pursuant to Rule 144A of the Securities Act of 1933, as amended (the "Securities Act"), and to buyers outside of the United States pursuant to Regulation S under the Securities Act. The 2030 Notes bear interest at 3.50% per annum, payable in cash semiannually in arrears on February 15 and August 15 of each year commencing on February 15, 2022, and are due February 15, 2030. The 2030 Notes were issued at par. We received net proceeds of $370.3 million after deducting $4.7 million of debt issuance costs. The debt issuance costs were capitalized as a reduction to the carrying value of debt and are being accreted to interest expense over the term of the 2030 Notes using the effective interest method. The net proceeds from the issuance of the 2030 Notes were used to redeem the remaining $300.0 million aggregate principal amount of the 2026 Notes (as described below), including the payment of related premiums, fees and expenses, with the balance of the proceeds available for general corporate purposes. Obligations under the 2030 Notes are fully and unconditionally guaranteed, jointly and severally, on a senior unsecured basis, by certain of our directly or indirectly wholly-owned subsidiaries. We may redeem the 2030 Notes, in whole or in part, at any time, at the applicable redemption prices specified under the indenture governing the 2030 Notes, plus accrued and unpaid interest, if any, to the date of redemption. If we experience certain changes of control, we must offer to repurchase all of the 2030 Notes at a purchase price of 101.00% of their principal amount, plus accrued and unpaid interest, if any, to, but excluding, the repurchase date. The indenture governing the 2030 Notes contains limited covenants that, among other things, limit our ability and the ability of our subsidiaries to (i) incur certain secured debt, (ii) engage in certain sale and leaseback transactions and (iii) merge or consolidate with other entities. The foregoing limitations are subject to exceptions as set forth in the indenture governing the 2030 Notes. The indenture governing the 2030 Notes contains customary events of default (subject to certain cases to customary grace and cure periods). As of January 2, 2022, we were in compliance with all covenants under the indenture governing the 2030 Notes. 5.375% Senior Notes due 2028 On July 25, 2019, we issued $500.0 million aggregate principal senior unsecured notes (the "2028 Notes"). The 2028 Notes were issued in a private placement for resale to qualified institutional buyers pursuant to Rule 144A under the Securities Act, and to buyers outside of the United States pursuant to Regulation S under the Securities Act. The 2028 Notes were issued without registration rights and are not listed on any securities exchange. The 2028 Notes bear interest at 5.375% per annum, payable in cash semiannually in arrears on February 1 and August 1 of each year and are due February 1, 2028. The 2028 notes were issued at par. We received net proceeds of $493.3 million after deducting $6.7 million of debt issuance costs. The debt issuance costs were capitalized as a reduction to the carrying value of debt and are being accreted to interest expense over the term of the 2028 Notes using the effective interest method. The net proceeds from issuance of the 2028 Notes, together with available cash balances, were used to redeem the remaining $500.0 million aggregate principal amount of similar senior unsecured notes, resulting in loss on extinguishment of debt of $14.5 million after paying the applicable premium of $14.1 million and writing off the unamortized premium of $3.1 million and unamortized debt issuance costs of $3.5 million. Obligations under the 2028 Notes are fully and unconditionally guaranteed, jointly and severally, on a senior unsecured basis, by certain of our directly or indirectly wholly-owned subsidiaries. We may redeem the 2028 Notes, in whole or in part, at any time on or after February 1, 2023, at the applicable redemption prices specified under the indenture governing the 2028 Notes, plus accrued and unpaid interest, if any, to the date of redemption. If we experience certain changes of control or consummate certain asset sales and do not reinvest the net proceeds, we must offer to repurchase all of the 2028 Notes at a purchase price of 101.00% (in the case of changes in control) or 100.00% (in the case of asset sales) of their principal amount, plus accrued and unpaid interest, if any, to, but excluding, the repurchase date. The indenture governing the 2028 Notes contains restrictive covenants that, among other things, limit our ability and the ability of our subsidiaries to: (i) incur additional debt and issue disqualified or preferred stock, (ii) make restricted payments, (iii) sell assets, (iv) create or permit restrictions on the ability of our restricted subsidiaries to pay dividends or make other distributions to the parent company, (v) create or incur certain liens, (vi) enter into sale and leaseback transactions, (vii) merge or consolidate with other entities and (viii) enter into transactions with affiliates. The foregoing limitations are subject to exceptions as set forth in the indenture governing the 2028 Notes. In addition, if in the future the 2028 Notes have an investment grade rating from at least two nationally recognized statistical rating organizations, certain of these covenants will be terminated. The indenture governing the 2028 Notes contains customary events of default (subject in certain cases to customary grace and cure periods). As of January 2, 2022, 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 were issued in a private placement for resale to qualified institutional buyers pursuant to Rule 144A under the Securities Act, and to buyers outside of the United States pursuant to Regulation S under the Securities Act. The 2026 Notes were issued without registration rights and are not listed on any securities exchange. The 2026 Notes bore interest at 5.75% per annum, payable in cash semiannually in arrears on March 15 and September 15 of each year and were originally due September 15, 2026. The 2026 notes were issued at par. We received net proceeds of $295.7 million after deducting $4.3 million of debt issuance costs. The debt issuance costs were capitalized as a reduction to the carrying value of debt and were accreted to interest expense over the term of the 2026 Notes using the effective interest method. Subsequent to the closing of the 2030 Notes offering, the 2026 Notes were redeemed, and the notes were considered extinguished as of July 26, 2021. Under the terms of the indenture governing the 2026 Notes, we paid the applicable premium of $10.8 million. Additionally, the unamortized debt issuance costs of $2.8 million relating to the 2026 Notes were written off in conjunction with the extinguishment of the 2026 Notes. The resulting loss on extinguishment of debt was $13.6 million and was recorded as part of income from continuing operations before income tax expense in the condensed consolidated statements of income and comprehensive income in 2021. Additionally, the cash payment of interest accrued to, but not including, the redemption date was accelerated to the redemption date. 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. Obligations under the ABL Facility are secured by a first priority security interest in such accounts receivable, inventory and other related assets of Masonite and our subsidiaries. In addition, obligations under the ABL Facility are fully and unconditionally guaranteed, jointly and severally, on a senior secured basis, by certain of our directly or indirectly wholly-owned subsidiaries. Borrowings under the ABL Facility bear interest at a rate equal to, at our option, (i) the 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 and covenants by us that, among other things, and subject to certain exceptions, restrict Masonite's ability and the ability of our subsidiaries to: (i) pay dividends on our common shares and make other restricted payments, (ii) make investments and acquisitions, (iii) engage in transactions with our affiliates, (iv) sell assets, (v) merge and (vi) create liens. The ABL Facility, among other things, (i) permits us to incur unlimited unsecured debt as long as such debt does not contain covenants or default provisions that are more restrictive than those contained in the ABL Facility, (ii) permits us to incur debt as long as the pro forma secured leverage ratio is less than 4.5 to 1.0, and (iii) adds certain additional exceptions and exemptions under the restricted payment, investment and indebtedness covenants (including increasing the amount of certain debt permitted to be incurred under an existing exception). As of January 2, 2022, we were in compliance with all covenants under the credit agreement governing the ABL Facility. We had availability of $219.5 million under our ABL Facility and there were no amounts outstanding as of January 2, 2022. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jan. 02, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Indemnifications We have provided customary indemnifications to our landlords under certain property lease agreements for claims by third parties in connection with their use of the premises. We also have provided routine indemnifications against adverse effects related to changes in tax laws and patent infringements by third parties. The maximum amount of these indemnifications cannot be reasonably estimated due to their nature. In some cases, we have recourse against other parties to mitigate the risk of loss from these indemnifications. Historically, we have not made any significant payments relating to such indemnifications. Antitrust Class Action Proceedings - United States During the year ended January 3, 2021, we recorded a legal reserve of $40.55 million in selling, general and administration expenses within the consolidated statements of income and comprehensive income related to the settlement of two putative class action antitrust cases pending in the Eastern District of Virginia. The settlements were paid and the cases were dismissed in 2021. Antitrust Class Action Proceedings - Canada 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. On December 22, 2020, the parties filed a motion with the court seeking to stay the proceeding. 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. On January 15, 2021, the plaintiff advised that they would be filing a motion to amend the complaint seeking to replace the named representative plaintiff and to amend the alleged conspiracy period, which was subsequently granted by the Federal Court on February 12, 2021. This proceeding is at an early stage. The plaintiff served its certification record on March 31, 2021. The parties are conferring regarding a narrowing of issues and with respect to a mutually agreeable timeline of steps leading up to the plaintiff's certification motion. The parties have written to the Federal Court advising that the parties do not yet propose to set a timetable of steps leading to the certification motion and requesting that the parties be permitted to provide a further update to the Federal Court by May 30, 2022. 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, including but not limited to wage and hour and labor lawsuits. 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. |
Revenues
Revenues | 12 Months Ended |
Jan. 02, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues We derive our revenues primarily from the manufacture and delivery of doors and door components as performance obligations that arise from our contracts with customers are satisfied. Materially all of our revenues are generated from contracts with customers and the nature, timing and any uncertainty in the recognition of revenues are not affected by the type of good, customer or geographical region to which the performance obligation relates. Our contracts with our customers are generally in the form of purchase orders and the performance obligation arises upon receipt of the purchase order and agreement upon the transaction price. The performance obligations are satisfied at a point in time when control of the promised goods is transferred to the customer and payment terms vary from customer to customer. Payment terms are short-term, are customary for our industry and in some cases, early payment incentives are offered. The transaction price recognized as revenue and accounts receivable is determined based upon a number of estimates, including: • Incentive-based volume rebates, which are based on individual rebate agreements with our customers, as well as historical and expected performance of each individual customer, • Estimated sales returns, which are based on historical returns as a percentage of revenues, and • Adjustments for early payment discounts offered by us. Contract assets are represented by our trade accounts receivable balances on the consolidated balance sheets, and are described in Note 3. Accounts Receivable. There were no other material contract assets or liabilities as of January 2, 2022, or January 3, 2021. Our warranties are assurance-type warranties and do not represent separate performance obligations to our customers. There were no material impairment losses related to contract assets during the years ended January 2, 2022, January 3, 2021, or December 29, 2019. |
Share Based Compensation Plans
Share Based Compensation Plans | 12 Months Ended |
Jan. 02, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Share Based Compensation Plans | Share Based Compensation Plans Share-based compensation expense was $16.0 million, $19.4 million and $10.0 million for the years ended January 2, 2022, January 3, 2021, and December 29, 2019, respectively. As of January 2, 2022, the total remaining unrecognized compensation expense related to share based compensation amounted to $16.8 million, which will be amortized over the weighted average remaining requisite service period of 1.3 years. Share based compensation expense is recognized using a graded-method approach, or to a lesser extent a straight-line approach, depending on the terms of the individual award, and is classified within selling, general and administration expenses in the consolidated statements of income and comprehensive income. All forfeitures are accounted for as they occur. All share based awards are settled through issuance of new shares of our common stock. The share based award agreements contain restrictions on sale or transfer other than in limited circumstances. All other transfers would cause the share based awards to become null and void. Equity Incentive Plan On March 10, 2021, the Board of Directors adopted the Masonite International Corporation 2021 Omnibus Incentive Equity Plan (the "2021 Equity Plan"), which was approved by our shareholders at the Annual General Meeting of Shareholders on May 13, 2021. The 2021 Equity Plan is effective for ten years from the date of approval. The aggregate number of common shares that can be issued with respect to equity awards under the 2021 Equity Plan cannot exceed 880,000 shares; plus the number of shares reserved for the 2012 Plan that is in excess of the number of shares related to outstanding grants; plus the number of shares subject to existing grants under the 2012 Plan that may expire or be forfeited or cancelled. On July 12, 2012, the Board of Directors adopted the Masonite International Corporation 2012 Equity Incentive Plan, which was amended on June 21, 2013, by our Board of Directors, further amended and restated by our Board of Directors on February 23, 2015, and approved by our shareholders on May 12, 2015 (as amended and restated, the "2012 Plan"). The 2021 Equity Plan and 2012 Plan ("the Plans") were adopted because the Board of Directors believes awards granted will help to attract, motivate and retain employees and non-employee directors, align employee and stockholder interests and encourage a performance-based culture built on employee stock ownership. The Plans permits us to offer eligible directors, employees and consultants cash and share-based incentives, including stock options, stock appreciation rights, restricted stock, other share-based awards (including restricted stock units) and cash-based awards. The Plans are effective for ten years from the date of its adoption. Awards granted under the Plans are at the discretion of the Human Resources and Compensation Committee of the Board of Directors. The Human Resources and Compensation Committee may grant any award under the Plans in the form of a performance award. The Plans may be amended, suspended or terminated by the Board at any time; provided, that any amendment, suspension or termination which impairs the rights of a participant is subject to such participant's consent and; provided further, that certain material amendments are subject to shareholder approval. As of January 2, 2022, there were 1,543,781 shares of common stock available for future issuance under the 2021 Equity Plan. Deferred Compensation Plan We offer to certain of our employees and directors a Deferred Compensation Plan ("DCP"). The DCP is an unfunded non-qualified deferred compensation plan that permits those certain employees and directors to defer a portion of their compensation to a future time. Eligible employees may elect to defer a portion of their base salary, bonus and/or restricted stock units and eligible directors may defer a portion of their director fees or restricted stock units. All contributions to the DCP on behalf of the participant are fully vested (other than restricted stock unit deferrals which remain subject to the vesting terms of the applicable equity incentive plan) and placed into a grantor trust, commonly referred to as a "rabbi trust." Although we are permitted to make matching contributions under the terms of the DCP, we have not elected to do so. The DCP invests the contributions in diversified securities from a selection of investments and the participants choose their investments and may periodically reallocate the assets in their respective accounts. Participants are entitled to receive the benefits in their accounts upon separation of service or upon a specified date, with benefits payable as a single lump sum or in annual installments. All plan investments are categorized as having Level 1 valuation inputs as established by the FASB’s Fair Value Framework. Assets of the rabbi trust, other than Company stock, are recorded at fair value and included in other assets in the consolidated balance sheets. These assets in the rabbi trust are classified as trading securities and changes in their fair values are recorded in other (income) expense, net in the consolidated statements of income and comprehensive income. The liability relating to deferred compensation represents our obligation to distribute funds to the participants in the future and is included in other liabilities in the consolidated balance sheets. As of January 2, 2022, the liability and asset relating to deferred compensation had a fair value of $8.9 million and $9.0 million, respectively. As of January 3, 2021, the liability and asset relating to deferred compensation had a fair value of $6.9 million and $6.7 million, respectively. Any gain or loss relating to changes in the fair value of the deferred compensation liability is recognized in selling, general and administration expense in the consolidated statements of income and comprehensive income. As of January 2, 2022, participation in the deferred compensation plan is limited and no restricted stock awards have been deferred into the deferred compensation plan. Stock Appreciation Rights We have granted Stock Appreciation Rights ("SARs") to certain employees, which entitle the recipient to the appreciation in value of a number of common shares over the exercise price over a period of time, each as specified in the applicable award agreement. The exercise price of any SAR granted may not be less than the fair market value of our common shares on the date of grant. The compensation expense for the SARs is measured based on the fair value of the SARs at the date of grant and is recognized over the requisite service period. The SARs vest over a maximum of four years, have a life of ten years and settle in common shares. It is assumed that all time-based SARs will vest. The total fair value of SARs vested was $0.8 million, $1.0 million and $1.1 million, in the years ended January 2, 2022, January 3, 2021, and December 29, 2019, respectively. Twelve Months Ended January 2, 2022 Stock Appreciation Rights Aggregate Intrinsic Value (in thousands) Weighted Average Exercise Price Average Remaining Contractual Life (Years) Outstanding, beginning of period 207,094 $ 7,409 $ 62.56 7.5 Granted 28,707 107.68 Exercised (69,223) 4,305 57.79 Forfeited (7,853) 82.76 Outstanding, end of period 158,725 $ 7,324 $ 71.81 7.5 Exercisable, end of period 81,474 $ 4,451 $ 63.32 6.9 Twelve Months Ended January 3, 2021 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 (209,793) 7,033 48.59 Forfeited (19,995) 62.10 Outstanding, end of period 207,094 $ 7,409 $ 62.56 7.5 Exercisable, end of period 94,883 $ 3,736 $ 58.97 6.4 Twelve Months Ended December 29, 2019 Stock Appreciation Rights Aggregate Intrinsic Value (in thousands) Weighted Average Exercise Price Average Remaining Contractual Life (Years) Outstanding, beginning of period 514,313 $ 7,254 $ 39.01 4.6 Granted 111,230 57.29 Exercised (212,767) 9,379 19.68 Forfeited (8,329) 67.24 Outstanding, end of period 404,447 $ 7,615 $ 53.62 4.7 Exercisable, end of period 230,440 $ 5,675 $ 47.92 2.5 The value of SARs granted in the year ended January 2, 2022, as determined using the Black-Scholes-Merton valuation model, was $0.8 million and is expected to be recognized over the average requisite service period of 2.0 years. Expected volatility is based upon the historical volatility of our 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: 2021 Grants 2020 Grants 2019 Grants SAR value (model conclusion) $ 28.08 $ 20.56 $ 12.26 Risk-free rate 0.8 % 1.2 % 2.2 % Expected dividend yield 0.0 % 0.0 % 0.0 % Expected volatility 25.2 % 22.6 % 21.9 % Expected term (years) 6.0 6.0 6.0 Restricted Stock Units We have granted Restricted Stock Units ("RSUs") to directors and certain employees under the 2012 and 2021 Plans. 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, which is equal to the stock price on the date of grant, and is recognized over the requisite service period. The RSUs vest over a maximum of three years and call for the underlying shares to be delivered no later than 30 days following the vesting date unless the participant is subject to a blackout period. In such case, the shares are to be delivered once the blackout restriction has been lifted. It is assumed that all time-based RSUs will vest. Year Ended January 2, 2022 January 3, 2021 December 29, 2019 Total Restricted Stock Units Outstanding Weighted Average Grant Date Fair Value Total Restricted Stock Units Outstanding Weighted Average Grant Date Fair Value Total Restricted Stock Units Outstanding Weighted Average Grant Date Fair Value Outstanding, beginning of period 488,057 $ 68.15 523,207 $ 59.58 429,027 $ 66.03 Granted 202,268 110.50 218,943 79.71 303,740 56.31 Performance adjustment (1) 14,474 63.05 (59,936) 67.50 (21,953) 57.51 Delivered (176,915) 66.40 (115,340) 60.30 (120,982) 62.03 Withheld to cover (2) (33,989) (16,234) (20,024) Forfeited (51,789) 80.81 (62,583) 53.80 (46,601) 63.62 Outstanding, end of period 442,106 $ 87.24 488,057 $ 68.15 523,207 $ 59.58 ____________ (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 year ended January 2, 2022, vest at specified future dates with only service requirements, while the remaining portion of the RSUs vest based on both performance and service requirements. The value of RSUs granted in the year ended January 2, 2022, was $22.4 million and is being recognized over the weighted average requisite service period of 2.2 years. During the year ended January 2, 2022, there were 210,904 RSUs vested at a fair value of $13.8 million. |
Restructuring Costs
Restructuring Costs | 12 Months Ended |
Jan. 02, 2022 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Costs | Restructuring CostsOver the past several years, we have engaged in a series of restructuring programs related to exiting certain geographies and non-core businesses, consolidating certain internal support functions and engaging in other actions designed to reduce our cost structure and improve productivity. These initiatives primarily consist of severance actions and lease termination costs. Management continues to evaluate our business; therefore, in future years, there may be additional provisions for new plan initiatives, as well as changes in previously recorded estimates, as payments are made or actions are completed. Asset impairment charges were also incurred in connection with these restructuring actions for certain assets sold, abandoned or made obsolete as a result of these programs. Restructuring costs include all salary-related severance benefits that are accrued and expensed when a restructuring plan has been put into place, the plan has received approval from the appropriate level of management and the benefit is probable and reasonably estimable. In addition to salary-related costs, we incur other restructuring costs when facilities are closed or capacity is realigned within the organization. Upon termination of a contract we record liabilities and expenses pursuant to the terms of the relevant agreement. For non-contractual restructuring activities, liabilities and expenses are measured and recorded at fair value in the period in which they are incurred. In May 2021, we initiated further actions to improve overall business performance including the reorganization of our specialty door manufacturing capacity in our Architectural reportable segment. The reorganization of our manufacturing capacity involves specific facilities in the Architectural segment and costs associated with the reorganization of these facilities, which resulted in the closure of one existing stile and rail facility and related headcount reductions beginning in the second quarter of 2021 (collectively, the "2021 Plan"). Costs associated with the 2021 Plan include severance and closure charges and continued through 2021. As of January 2, 2022, we do not expect to incur any material future charges related to the 2021 Plan. In November 2020, 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 primarily in our Architectural reportable segment as well as limited actions in the North American Residential reportable segment. The reorganization of our manufacturing capacity involves specific facilities in the Architectural segment and costs associated with the closure of these facilities and related headcount reductions began taking place in the fourth quarter of 2020 (collectively, the "2020 Plan"). Costs associated with the 2020 Plan include severance and closure charges and continued through 2021. As of January 2, 2022, we do not expect to incur any material future charges related to the 2020 Plan. In February 2019, we began implementing a plan to improve overall business performance that includes the reorganization of our manufacturing capacity and a reduction of our overhead and selling, general and administration workforce 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 continued through 2021. Additionally, the plan to divest non-core assets was determined to be a triggering event requiring a test of the carrying value of the definite-lived assets relating to the divestitures, as further described in Note 14. In the fourth quarter of 2019, we initiated additional restructuring actions related to both manufacturing capacity and reduction of our overhead and selling, general and administration workforce. As of January 2, 2022, we do not expect to incur any material future 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 included severance, retention and closure charges and continued throughout 2019. As of January 2, 2022, we do not expect to incur any material future charges related to the 2018 Plan. The following table summarizes the restructuring charges recorded for the periods indicated: Year Ended January 2, 2022 (In thousands) North American Residential Europe Architectural Corporate & Other Total 2021 Plan $ — $ — $ 1,666 $ — $ 1,666 2020 Plan 23 — 3,499 23 3,545 2019 Plan (172) — — 528 356 Total Restructuring Costs $ (149) $ — $ 5,165 $ 551 $ 5,567 Year Ended January 3, 2021 (In thousands) North American Residential Europe Architectural Corporate & Other Total 2020 Plan $ 29 $ — $ 1,733 $ — $ 1,762 2019 Plan 3,863 (37) 1,165 1,048 6,039 2018 Plan 435 — — — 435 Total Restructuring Costs $ 4,327 $ (37) $ 2,898 $ 1,048 $ 8,236 Year Ended December 29, 2019 (In thousands) North American Residential Europe Architectural Corporate & Other Total 2019 Plan $ 5,459 $ 396 $ 506 $ 1,019 $ 7,380 2018 Plan 1,470 926 — — 2,396 Total Restructuring Costs $ 6,929 $ 1,322 $ 506 $ 1,019 $ 9,776 Cumulative Amount Incurred Through January 2, 2022 (In thousands) North American Residential Europe Architectural Corporate & Other Total 2021 Plan $ — $ — $ 1,666 $ — $ 1,666 2020 Plan 52 — 5,232 23 5,307 2019 Plan 9,150 359 1,671 2,595 13,775 2018 Plan 2,180 2,275 — — 4,455 Total Restructuring Costs $ 11,382 $ 2,634 $ 8,569 $ 2,618 $ 25,203 The changes in the accrual for restructuring by activity were as follows for the periods indicated: (In thousands) January 3, Severance Closure Costs Cash Payments January 2, 2021 Plan $ — $ 513 $ 1,153 $ (1,641) $ 25 2020 Plan 1,492 264 3,281 (5,015) 22 2019 Plan 291 175 181 (645) 2 Total $ 1,783 $ 952 $ 4,615 $ (7,301) $ 49 (In thousands) December 29, 2019 Severance Closure Costs Cash Payments January 3, 2020 Plan $ — $ 1,506 $ 256 $ (270) $ 1,492 2019 Plan 1,535 1,752 4,287 (7,283) 291 2018 Plan — 163 272 (435) — Total $ 1,535 $ 3,421 $ 4,815 $ (7,988) $ 1,783 |
Asset Impairment
Asset Impairment | 12 Months Ended |
Jan. 02, 2022 | |
Asset Impairment Charges [Abstract] | |
Asset Impairment | Asset Impairment During the year ended January 2, 2022, we recognized asset impairment charges of $69.9 million, of which $59.5 million related to a goodwill impairment charge in the Architectural reporting unit as a result of manufacturing constraints in the current year due to COVID-19 related absenteeism, material availability and production challenges and $10.4 million related to assets in the Architectural segment and an asset in the Corporate & Other category as a result of announced plant closures under the 2021 and 2020 Plans. 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 $59.5 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 $59.5 million to zero. The $10.4 million asset impairment charge was determined based upon the excess of the carrying values of property, plant and equipment over the respective fair values of such assets, determined using a discounted cash flows approach for each asset group. Each of these valuations was performed on a non-recurring basis and is categorized as having Level 3 valuation inputs as established by the FASB's Fair Value Framework. The Level 3 unobservable inputs include an estimate of future cash flows and the salvage value for each of the assets. The fair value of the assets was determined to be $6.3 million, compared to a book value of $16.7 million, with the difference representing the asset impairment charges recorded in the consolidated statements of income and comprehensive income. During the year ended January 3, 2021, we recognized asset impairment charges of $51.5 million related to the Architectural reporting unit, as a result of 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 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. The fair value of the reporting unit was determined to be $59.5 million, compared to a book value of $111.0 million, with the difference representing the asset impairment charge recorded in the consolidated statements of income and comprehensive income. During the year ended December 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 unobservable inputs include an estimate of future cash flows and the salvage value for each of the asset groups. The fair value of the asset group was determined to be $9.4 million, solely based upon the market value of the property, plant and |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 02, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For financial reporting purposes, income before income taxes includes the following components: Year Ended (In thousands) January 2, 2022 January 3, 2021 December 29, 2019 Income before income tax expense: Canada $ 44,935 $ 54,355 $ 21,345 Foreign 99,031 47,945 45,003 Total income before income tax expense $ 143,966 $ 102,300 $ 66,348 Income tax expense for income taxes consists of the following: Year Ended (In thousands) January 2, 2022 January 3, 2021 December 29, 2019 Current income tax expense: Canada $ 9,392 $ 8,283 $ 7,600 Foreign 30,499 30,413 6,417 Total current income tax expense: 39,891 38,696 14,017 Deferred income tax (benefit) expense: Canada 3,626 (235) 1,497 Foreign 1,255 (9,850) 1,795 Total deferred income tax (benefit) expense: 4,881 (10,085) 3,292 Income tax expense $ 44,772 $ 28,611 $ 17,309 The Canadian statutory rate is 26.5%, 26.5% and 26.7% for the years ended January 2, 2022, January 3, 2021, and December 29, 2019, respectively. A summary of the differences between expected income tax expense calculated at the Canadian statutory rate and the reported consolidated income tax expense (benefit) is as follows: Year Ended (In thousands) January 2, 2022 January 3, 2021 December 29, 2019 Income tax expense computed at statutory income tax rate $ 38,137 $ 27,130 $ 17,702 Foreign rate differential (12,370) (4,900) (4,503) Permanent differences 3,843 (1,286) 1,195 Disposal of subsidiaries 1,651 493 2,751 Income attributable to a permanent establishment 2,608 2,253 148 Change in valuation allowance 1,569 (9,271) (1,463) Tax exempt income — — (2,451) Income tax credits (5,591) (1,831) (1,869) Change in tax rate (1) 2,706 883 267 Goodwill impairment 11,296 7,965 — Limitation on executive compensation 1,904 2,209 773 Withholding and other taxes 1,761 2,435 2,006 Nondeductible interest — 1,714 4,814 Other (1) (2,742) 817 (2,061) Income tax expense $ 44,772 $ 28,611 $ 17,309 ____________ (1) Prior year amounts have been reclassified to conform to the current year presentation. There were no impacts at the consolidated level. The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities are presented below: Year Ended (In thousands) January 2, 2022 January 3, 2021 Deferred tax assets: Non-capital loss carryforwards $ 11,142 $ 13,860 Capital loss carryforwards 6,740 9,375 Deferred interest expense 12,518 6,845 Pension and post-retirement liability 177 679 Accruals and reserves currently not deductible for tax purposes 18,208 31,378 Share based compensation 4,456 4,630 Income tax credits 5,466 5,083 Lease right-of-use assets 57,735 48,467 Other 1,142 668 Total deferred tax assets 117,584 120,985 Valuation allowance (10,286) (5,970) Total deferred tax assets, net of valuation allowance 107,298 115,015 Deferred tax liabilities: Plant and equipment (77,807) (79,208) Intangibles (23,147) (26,866) Basis difference in subsidiaries (7,488) (7,354) Unrealized foreign exchange gain (287) (1,534) Lease liabilities (52,955) (44,673) Other (2,786) (3,122) Total deferred tax liabilities (164,470) (162,757) Net deferred tax liability $ (57,172) $ (47,742) Management assesses the available positive and negative evidence to estimate if sufficient future taxable income will be generated to use the existing deferred tax assets. As of January 2, 2022, and January 3, 2021, a valuation allowance of $10.3 million and $6.0 million, respectively, has been established to reduce the deferred tax assets to an amount that is more likely than not to be realized. We have established valuation allowances on certain deferred tax assets resulting from net operating loss carryforwards and other assets in Costa Rica and the United Kingdom. The following is a rollforward of the valuation allowance for deferred tax assets: Year Ended (In thousands) January 2, 2022 January 3, 2021 December 29, 2019 Balance at beginning of period $ 5,970 $ 15,569 $ 16,373 Additions charged to expense and other 4,473 851 2,863 Deductions (157) (10,450) (3,667) Balance at end of period $ 10,286 $ 5,970 $ 15,569 The losses carried forward for tax purposes are available to reduce future taxable income by $33.7 million. We can apply these losses against future taxable income based on the period of expiration as follows: (In thousands) Canada Other Foreign Total 2022-2027 $ — $ 3,213 $ 3,213 2028-2042 21,520 — 21,520 Indefinitely — 8,988 8,988 Total tax losses carried forward $ 21,520 $ 12,201 $ 33,721 We believe that it is more likely than not that the benefit from certain net operating loss carryforwards will not be realized. In recognition of this risk, we have provided valuation allowances of $1.3 million on these gross net operating loss carryforwards. If or when recognized, the tax benefit related to any reversal of the valuation allowance on deferred tax assets as of January 2, 2022, will be accounted for as a reduction of income tax expense. We have outside basis differences, including undistributed earnings in our foreign subsidiaries. For those subsidiaries in which we are considered to be indefinitely reinvested, no provision for Canadian income or local country withholding taxes has been recorded. Upon reversal of the outside basis difference and/or repatriation of those earnings, in the form of dividends or otherwise, we may be subject to both Canadian income taxes and withholding taxes payable to the various foreign countries. For those subsidiaries where the earnings are not considered indefinitely reinvested, taxes have been accrued. The determination of the unrecorded deferred tax liability for temporary differences related to investments in foreign subsidiaries that are considered to be indefinitely reinvested is not considered practicable. As of January 2, 2022, and January 3, 2021, our unrecognized tax benefits were $7.6 million and $8.1 million, respectively, excluding interest and penalties. The unrecognized tax benefits would favorably impact the effective tax rate if the tax benefits were recognized. The unrecognized tax benefits are recorded in other long-term liabilities and as a reduction to related long-term deferred income taxes in the consolidated balance sheets. The changes to our unrecognized tax benefits were as follows: Year Ended (In thousands) January 2, 2022 January 3, 2021 December 29, 2019 Unrecognized tax benefit at beginning of period $ 8,108 $ 8,156 $ 9,084 Gross increases in tax positions in current period 103 62 46 Gross decreases in tax positions in prior period (108) (110) (973) Gross increases in tax positions in prior period — 1 — Lapse of statute of limitations (511) (1) (1) Unrecognized tax benefit at end of period $ 7,592 $ 8,108 $ 8,156 We recognize interest and penalties accrued related to unrecognized tax benefits as income tax expense. During the years ended January 2, 2022, January 3, 2021, and December 29, 2019, we recorded accrued interest of $0.4 million, $0.6 million and $0.3 million, respectively. Additionally, we have recognized a liability for accumulated penalties of $0.3 million, $0.3 million and $0.4 million, and accumulated interest of $2.8 million, $3.1 million and $2.9 million, respectively. The interest and penalties accrued related to unrecognized tax benefits would also favorably impact the effective tax rate if those benefits were recognized. We estimate that the amount of unrecognized tax benefits will not significantly increase or decrease within the 12 months following the reporting date. We are subject to taxation in Canada, the United States and other foreign jurisdictions. As of January 2, 2022, the 2016 and 2017 tax years are subject to Canadian income tax examination. We are no longer subject to U.S. federal tax examinations for years prior to 2018. To the extent that income tax attributes such as net operating losses and tax credits have been carried forward from years prior to 2018, those attributes can still be audited when utilized on returns subject to audit. In state and local jurisdictions, we are no longer subject to income tax examination for years prior to 2015. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Jan. 02, 2022 | |
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. Year Ended (In thousands, except share and per share information) January 2, 2022 January 3, 2021 December 29, 2019 Net income attributable to Masonite $ 94,501 $ 69,037 $ 44,602 Shares used in computing basic earnings per share 24,176,846 24,569,727 25,130,027 Effect of dilutive securities: Incremental shares issuable under share compensation plans 385,687 373,451 322,695 Shares used in computing diluted earnings per share 24,562,533 24,943,178 25,452,722 Basic earnings per common share attributable to Masonite $ 3.91 $ 2.81 $ 1.77 Diluted earnings per common share attributable to Masonite $ 3.85 $ 2.77 $ 1.75 Anti-dilutive instruments excluded from diluted earnings per common share 28,707 215,563 295,879 The weighted average number of shares outstanding utilized for the diluted EPS calculation contemplates the exercise of all currently outstanding SARs and the conversion of all RSUs. The dilutive effect of such equity awards is calculated based on the weighted average share price for each fiscal period using the treasury stock method. |
Segment Information
Segment Information | 12 Months Ended |
Jan. 02, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information 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 (income) expense, 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 differs from the definitions of EBITDA contained in the indenture governing the 2030 Notes, 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 reportable segments is as follows for the periods indicated: Year Ended January 2, 2022 (In thousands) North American Residential Europe Architectural Corporate & Other Total Sales $ 1,955,424 $ 342,172 $ 303,078 $ 20,014 $ 2,620,688 Intersegment sales (2,526) (7,640) (13,602) — (23,768) Net sales to external customers $ 1,952,898 $ 334,532 $ 289,476 $ 20,014 $ 2,596,920 Adjusted EBITDA $ 374,452 $ 60,624 $ (2,704) $ (19,766) $ 412,606 Depreciation and amortization 39,504 23,825 14,620 14,033 91,982 Interest expense, net — — — 46,123 46,123 Income tax expense — — — 44,772 44,772 Year Ended January 3, 2021 (In thousands) North American Residential Europe Architectural Corporate & Other Total Sales $ 1,640,323 $ 260,834 $ 358,049 $ 19,947 $ 2,279,153 Intersegment sales (2,204) (2,721) (17,153) — (22,078) Net sales to external customers $ 1,638,119 $ 258,113 $ 340,896 $ 19,947 $ 2,257,075 Adjusted EBITDA $ 347,822 $ 40,474 $ 34,201 $ (58,785) $ 363,712 Depreciation and amortization 37,705 23,732 17,735 12,601 91,773 Interest expense, net — — — 46,807 46,807 Income tax expense — — — 28,611 28,611 Year Ended December 29, 2019 (In thousands) North American Residential Europe Architectural Corporate & Other Total Sales $ 1,469,194 $ 323,137 $ 380,300 $ 23,941 $ 2,196,572 Intersegment sales (3,386) (1,506) (14,997) — (19,889) Net sales to external customers $ 1,465,808 $ 321,631 $ 365,303 $ 23,941 $ 2,176,683 Adjusted EBITDA $ 232,512 $ 46,219 $ 40,470 $ (35,817) $ 283,384 Depreciation and amortization 37,689 26,257 19,705 16,198 99,849 Interest expense, net — — — 46,489 46,489 Income tax benefit — — — 17,309 17,309 A reconciliation of our consolidated Adjusted EBITDA to net income attributable to Masonite is set forth as follows for the periods indicated: Year Ended (In thousands) January 2, 2022 January 3, 2021 December 29, 2019 Net income attributable to Masonite $ 94,501 $ 69,037 $ 44,602 Plus: Depreciation 70,641 68,350 70,736 Amortization 21,341 23,423 29,113 Share based compensation expense 15,959 19,423 10,023 Loss on disposal of property, plant and equipment 1,316 6,234 6,396 Restructuring costs 5,567 8,236 9,776 Asset impairment 69,900 51,515 13,767 Loss on disposal of subsidiaries 8,590 2,091 14,260 Interest expense, net 46,123 46,807 46,489 Loss on extinguishment of debt 13,583 — 14,523 Other (income) expense, net 15,620 (5,217) 1,953 Income tax expense 44,772 28,611 17,309 Other items (1) — 40,550 — Net income attributable to non-controlling interest 4,693 4,652 4,437 Adjusted EBITDA $ 412,606 $ 363,712 $ 283,384 ____________ (1) Other items not part of our underlying business performance include $40,550 in legal reserves related to the settlement of U.S. class action litigation in the year ended January 3, 2021, and were recorded in selling, general and administration expenses within the consolidated statements of income and comprehensive income. Refer to Note 10. Commitments and Contingencies for additional information. We derive revenues from two major product lines: interior and exterior products. We do not review or analyze our two major product lines below net sales. Additionally, we sell door components to external customers which are not otherwise consumed in our vertical operations. Sales for the product lines are summarized as follows for the periods indicated: Year Ended (In thousands) January 2, 2022 January 3, 2021 December 29, 2019 Net sales to external customers: Interior products $ 1,654,379 $ 1,479,196 $ 1,427,459 Exterior products 813,605 647,241 628,301 Components 128,936 130,638 120,923 Total $ 2,596,920 $ 2,257,075 $ 2,176,683 Net sales information with respect to geographic areas exceeding 10% of consolidated net sales is as follows for the periods indicated: Year Ended (In thousands) January 2, 2022 January 3, 2021 December 29, 2019 Net sales to external customers from facilities in: United States $ 1,776,180 $ 1,595,398 $ 1,483,697 Canada 364,179 319,937 304,497 United Kingdom 300,008 218,382 281,888 Other 156,553 123,358 106,601 Total $ 2,596,920 $ 2,257,075 $ 2,176,683 In the years ended January 2, 2022, January 3, 2021, and December 29, 2019, net sales to The Home Depot, Inc., were $491.5 million, $411.1 million and $372.4 million, respectively, which are included in the North American Residential segment. No other individual customer's net sales exceeded 10% of consolidated net sales for any of the periods presented. Geographic information regarding property, plant and equipment which exceed 10% of consolidated property, plant and equipment is as follows as of the dates indicated: (In thousands) January 2, 2022 January 3, 2021 United States $ 413,289 $ 403,126 Canada 50,187 61,201 Other 163,321 160,799 Total $ 626,797 $ 625,126 |
Employee Future Benefits
Employee Future Benefits | 12 Months Ended |
Jan. 02, 2022 | |
Retirement Benefits [Abstract] | |
Employee Future Benefits | Employee Future Benefits United States Defined Benefit Pension Plan We have a defined benefit pension plan covering certain active and former employees in the United States ("U.S."). Benefits under the plan were frozen at various times in the past. On December 9, 2020, the Board of Directors approved a resolution to terminate the defined benefit pension plan and we initiated the process to terminate and annuitize the plan, which continued into 2021. During the fourth quarter of 2021, we completed balance sheet risk mitigation actions related to the U.S. pension plan and terminated the plan. In connection with the plan termination, we settled all future obligations under the U.S. defined benefit pension plan through a combination of lump-sum payments to eligible participants who elected to receive them, and the transfer of any remaining benefit obligations to a third-party insurance company under a group annuity contract, which resulted in the settlement of liabilities to affected participants. As a result of these actions, we recognized a pre-tax pension settlement charge of $23.3 million in the fourth quarter of 2021, primarily comprised of the recognition of past actuarial losses. This charge is recorded within other (income) expense, net in the consolidated statements of income and comprehensive income. The measurement date used for the accounting valuation of the defined benefit pension plan was January 2, 2022. Information about the U.S. defined benefit pension plan is as follows for the periods indicated: Year Ended (In thousands) January 2, 2022 January 3, 2021 December 29, 2019 Components of net periodic benefit cost: Service cost $ 331 $ 309 $ 548 Interest cost 1,516 2,183 3,423 Expected return on assets (2,953) (5,328) (5,723) Amortization of actuarial net losses 1,047 662 1,521 Settlement loss 23,343 — 5,651 Net pension expense (benefit) $ 23,284 $ (2,174) $ 5,420 During the fourth quarter of 2019, the plan purchased annuity contracts to settle liabilities for certain fully vested participants associated with benefits arising under the plan. Payments related to this offer were made from existing plan assets to settle the liabilities. As a result, total lump sum payments exceeded annual service and interest costs in 2019, and we recognized a pre-tax pension settlement charge of $5.7 million in the fourth quarter of 2019. This charge is recorded within other (income) expense, net in the consolidated statements of income and comprehensive income. Information with respect to the assets, liabilities and net plan assets of the U.S. defined benefit pension plan is set forth as follows for the periods indicated: Year Ended (In thousands) January 2, 2022 January 3, 2021 Pension assets: Fair value of plan assets, beginning of year $ 86,464 $ 79,422 Company contributions 5,550 1,250 Actual return on plan assets (2,347) 10,113 Plan settlements (84,573) — Benefits paid (3,711) (3,965) Administrative expenses paid (1,383) (356) Fair value of plan assets, end of year — 86,464 Pension liability: Accrued benefit obligation, beginning of year 85,330 78,557 Current service cost 331 309 Interest cost 1,516 2,183 Plan settlements (84,573) — Actuarial loss 2,490 8,602 Benefits paid (3,711) (3,965) Administrative expenses paid (1,383) (356) Accrued benefit obligation, end of year — 85,330 Net plan assets, end of year $ — $ 1,134 Amounts deferred in accumulated other comprehensive loss ("AOCL") is set forth for the periods indicated: Year Ended (In thousands) January 2, 2022 January 3, 2021 Net actuarial loss $ — $ 16,585 Prior service cost — 15 Total amount recognized in AOCL, pre-tax $ — $ 16,600 A reconciliation of the change in AOCL is set forth as follows for the periods indicated: Year Ended (In thousands) January 2, 2022 January 3, 2021 Net actuarial loss (gain) $ 7,790 $ 3,817 Amortization of: Curtailment recognition of prior service cost (15) (9) Settlement recognition of net loss (24,375) (653) Change in AOCL, pre-tax $ (16,600) $ 3,155 The net plan assets were recorded within other assets in the consolidated balance sheets. Pension fund assets were invested primarily in equity and debt securities. Asset allocation between equity and debt securities and cash was adjusted based on the expected life of the plan and the expected retirement age of the plan participants. Information with respect to the amounts and types of securities that are held in the U.S. defined benefit pension plan is set forth as follows for the periods indicated: Year Ended January 2, 2022 January 3, 2021 (In thousands) Amount % of Total Plan Amount % of Total Plan Equity securities $ — — % $ — — % Debt securities — — % 86,464 100.0 % Other — — % — — % $ — — % $ 86,464 100.0 % Under the Plan's investment policy statement, plan assets are invested to achieve a fully-funded status based on actuarial calculations, maintain a level of liquidity that is sufficient to pay benefit and expense obligations when due, maintain flexibility in determining the future level of contributions and maximize returns within the limits of risk. As a result of recent market gains and the U.S. defined benefit pension plan's funded status, the investment strategy was changed in 2020 to match expected outflows. Our pension funds were not invested directly in the debt or equity of Masonite, but may have been invested indirectly as a result of inclusion of Masonite in certain market or investment funds. The weighted average actuarial assumptions adopted in measuring our U.S. accrued benefit obligations and costs prior to termination were as follows for the periods indicated: Year Ended January 2, 2022 January 3, 2021 December 29, 2019 Discount rate applied for: Accrued benefit obligation 2.4 % 2.4 % 3.3 % Net periodic pension cost 2.4 % 3.3 % 4.3 % Expected long-term rate of return on plan assets 3.5 % 3.5 % 6.8 % The rate of compensation increase for the accrued benefit obligation and net periodic pension costs for the U.S. defined benefit pension plan is not applicable, as benefits under the plan are not affected by compensation increases. The expected long-term rate of return on plan assets assumption is derived by taking into consideration the target plan asset allocation, historical rates of return on those assets, projected future asset class returns and net outperformance of the market by active investment managers. An asset return model is used to develop an expected range of returns on the plan investments over a 30-year period, with the expected rate of return selected from a best estimate range within the total range of projected results. United Kingdom Defined Benefit Pension Plan We also have a defined benefit pension plan in the United Kingdom ("U.K."), which has been curtailed in prior years. The measurement date used for the accounting valuation of the U.K. defined benefit pension plan was January 2, 2022. Information about the U.K. defined benefit pension plan is as follows for the periods indicated: Year Ended (In thousands) January 2, 2022 January 3, 2021 December 29, 2019 Components of net periodic benefit cost: Interest cost $ 366 $ 536 $ 685 Expected return on assets (1,292) (1,021) (948) Amortization of actuarial net losses 289 340 246 Settlement loss — 127 — Net pension benefit $ (637) $ (18) $ (17) Information with respect to the assets, liabilities and net plan assets (accrued benefit obligation) of the U.K. defined benefit pension plan is as follows for the periods indicated: Year Ended (In thousands) January 2, 2022 January 3, 2021 Pension assets: Fair value of plan assets, beginning of year $ 31,222 $ 26,748 Company contributions 1,376 769 Actual return on plan assets 2,159 4,132 Benefits paid (919) (915) Plan settlements — (838) Translation adjustment (449) 1,326 Fair value of plan assets, end of year 33,389 31,222 Pension liability Accrued benefit obligation, beginning of year 35,394 32,601 Interest cost 366 536 Actuarial (gain) loss (1,431) 2,553 Benefits paid (919) (915) Plan settlements — (838) Translation adjustment (408) 1,457 Accrued benefit obligation, end of year 33,002 35,394 Net plan assets (accrued benefit obligation), end of year $ 387 $ (4,172) There were $1.4 million of actuarial gains during fiscal year 2021 primarily as a result of a change in the discount rate from 1.27% to 1.83%. There were no material changes to any other key assumptions nor was there a significant demographic gain or loss. Amounts deferred in AOCL is set forth for the periods indicated: Year Ended (In thousands) January 2, 2022 January 3, 2021 Net actuarial loss $ 2,794 $ 5,372 Prior service cost 518 549 Total amount recognized in AOCL, pre-tax $ 3,312 $ 5,921 A reconciliation of the change in AOCL is set forth as follows for the periods indicated: Year Ended (In thousands) January 2, 2022 January 3, 2021 Net actuarial (gain) loss $ (2,298) $ (557) Amortization of: Prior service cost (25) (23) Net actuarial loss from prior years (264) (444) Translation adjustment (22) 218 Change in AOCL, pre-tax $ (2,609) $ (806) The net plan assets are recorded within other assets in the consolidated balance sheets. Pension fund assets are invested primarily in equity and debt securities. Asset allocation between equity and debt securities and cash is adjusted based on the expected life of the plan and the expected retirement age of the plan participants. Information with respect to the amounts and types of securities that are held in the U.K. defined benefit pension plan is set forth as follows for the periods indicated: Year Ended January 2, 2022 January 3, 2021 (In thousands) Amount % of Total Plan Amount % of Total Plan Equity securities $ 8,327 24.9 % $ 11,905 38.1 % Debt securities — — % — — % Other 25,062 75.1 % 19,317 61.9 % $ 33,389 100.0 % $ 31,222 100.0 % Under the Plan's investment policy and strategy, plan assets are invested to achieve a fully funded status based on actuarial calculations, maintain a level of liquidity that is sufficient to pay benefit and expense obligations when due, maintain flexibility in determining the future level of contributions and maximize returns within the limits of risk. The target asset allocation for plan assets in the U.K. defined benefit pension plan for 2021 is 75% other securities and 25% equity securities. Other securities represent investments that are primarily invested in a mixture of debt and equity securities. The weighted average actuarial assumptions adopted in measuring our U.K. accrued benefit obligations and costs were as follows for the periods indicated: Year Ended January 2, 2022 January 3, 2021 December 29, 2019 Discount rate applied for: Accrued benefit obligation 1.8 % 1.3 % 1.9 % Net periodic pension cost 1.0 % 1.0 % 1.7 % Expected long-term rate of return on plan assets 4.1 % 4.1 % 3.9 % The rate of compensation increase for the accrued benefit obligation and net pension cost for the U.K. defined benefit pension plan is not applicable, as the plan was curtailed in prior years and benefits under the plan are not affected by compensation increases. The expected long-term rate of return on plan assets assumption is derived by taking into consideration the target plan asset allocation, historical rates of return on those assets, projected future asset class returns and net outperformance of the market by active investment managers. An asset return model is used to develop an expected range of returns on the plan investments over a 10-year period, with the expected rate of return selected from a best estimate range within the total range of projected results. As of January 2, 2022, the estimated future benefit payments from the U.K. defined benefit pension plans for the following future periods are set forth as follows: (In thousands) Expected Future Benefit Payments Fiscal year: 2022 $ 1,111 2023 1,076 2024 1,178 2025 1,264 2026 1,219 2027 through 2031 7,025 Total estimated future benefit payments $ 12,873 Expected contributions to the U.K. defined benefit pension plan during 2022 are $2.2 million. Overall Pension Obligation For all periods presented, the U.S. and U.K. defined benefit pension plans were invested in equity securities, equity funds, bonds, bond funds and cash and cash equivalents. All investments are publicly traded and possess a high level of marketability or liquidity. All plan investments are categorized as having Level 1 valuation inputs as established by the FASB’s Fair Value Framework. The change in the net difference between the pension plan assets and projected benefit obligation that is not attributed to our recognition of pension expense or funding of the plan is recognized in other comprehensive income (loss) within the consolidated statements of income and comprehensive income and the balance of such changes is included in AOCL in the consolidated balance sheets. Defined Contribution Benefit Plans We have defined contribution benefit plans covering certain U.S. and foreign subsidiary employees subject to eligibility requirements set up in accordance with local statutory requirements. Contributions made to these plans were $15.6 million, $13.7 million and $12.4 million for the years ended January 2, 2022, January 3, 2021, and December 29, 2019, respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income and Other Comprehensive Income | 12 Months Ended |
Jan. 02, 2022 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income and Other Comprehensive Income | Accumulated Other Comprehensive Loss and Other Comprehensive Income A rollforward of the components of accumulated other comprehensive loss is as follows for the periods indicated: Year Ended (In thousands) January 2, 2022 January 3, 2021 December 29, 2019 Accumulated foreign exchange losses, beginning of period $ (93,684) $ (113,336) $ (129,930) Foreign currency translation (loss) gain (6,719) 17,566 14,544 Income tax benefit on foreign currency translation (loss) gain 6 17 25 Cumulative translation adjustment recognized upon deconsolidation of subsidiaries 3,544 2,254 2,368 Less: foreign exchange gain attributable to non-controlling interest 66 185 343 Accumulated foreign exchange losses, end of period (96,919) (93,684) (113,336) Accumulated pension and other post-retirement adjustments, beginning of period (18,379) (16,833) (22,989) Pension and other post-retirement adjustments 2,250 (3,163) 962 Income tax (expense) benefit on pension and other post-retirement adjustments (437) 851 (347) Amortization of actuarial net losses 1,336 1,002 1,798 Income tax expense on amortization of actuarial net losses (258) (236) (442) Pension settlement charges 15,654 — 5,651 Income tax expense on pension settlement charges (4,829) — (1,466) Accumulated pension and other post-retirement adjustments, end of period (4,663) (18,379) (16,833) Accumulated other comprehensive loss $ (101,582) $ (112,063) $ (130,169) Other comprehensive income, net of tax: $ 10,547 $ 18,291 $ 23,093 Less: other comprehensive income attributable to non-controlling interest 66 185 343 Other comprehensive income attributable to Masonite $ 10,481 $ 18,106 $ 22,750 Cumulative translation adjustments are reclassified out of accumulated other comprehensive loss into loss on disposal of subsidiaries in the years ended January 2, 2022, and January 3, 2021, in the consolidated statements of income and comprehensive income. Actuarial net losses are reclassified out of accumulated other comprehensive loss into cost of goods sold in the consolidated statements of income and comprehensive income. Pension settlement charges are reclassified out of accumulated other comprehensive loss into other (income) expense, net, in the consolidated statements of income and comprehensive income. Foreign currency translation losses as a result of translating our foreign assets and liabilities into U.S. dollars during the year ended January 2, 2022, were $6.7 million, primarily driven by weakening of the Euro, the Pound Sterling, the Malaysian Ringgit and the Mexican Peso, partially offset by strengthening of the Canadian Dollar in comparison to the U.S. Dollar during the period. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Jan. 02, 2022 | |
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: Year Ended (In thousands) January 2, 2022 January 3, 2021 December 29, 2019 Transactions involving cash: Interest paid $ 42,703 $ 45,380 $ 44,388 Interest received 250 1,110 2,064 Income taxes paid 40,506 24,336 14,809 Income tax refunds 875 805 1,713 Cash paid for operating lease liabilities 29,886 29,943 24,522 Cash paid for finance lease liabilities 1,470 1,393 528 Non-cash transactions from operating activities: Right-of-use assets acquired under operating leases 49,703 51,381 36,774 Non-cash transactions from investing and financing activities: Right-of-use assets acquired under finance leases — — 26,326 The following reconciles total cash, cash equivalents and restricted cash as of the dates indicated: January 2, 2022 January 3, 2021 Cash and cash equivalents $ 381,395 $ 364,674 Restricted cash 10,110 10,560 Total cash, cash equivalents and restricted cash $ 391,505 $ 375,234 Property, plant and equipment additions in accounts payable were $10.7 million and $5.6 million as of January 2, 2022, and January 3, 2021, respectively. During the fourth quarter of 2018, we provided debt financing to a distribution company via an interest-bearing note that is scheduled to mature in 2028. The interest-bearing note receivable is carried at amortized cost, with the interest payable in kind at the election of the borrower. This transaction is recorded as a component of other assets on the consolidated balance sheets. |
Variable Interest Entity
Variable Interest Entity | 12 Months Ended |
Jan. 02, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entity | Variable Interest EntityAs of January 2, 2022, and January 3, 2021, we held an interest in one variable interest entity ("VIE"), Magna Foremost Sdn Bhd, which is located in Bintulu, Malaysia. The VIE is integrated into our supply chain and manufactures door facings. We are the primary beneficiary of the VIE based on the terms of the existing supply agreement with the VIE. As primary beneficiary via the supply agreement, we receive a disproportionate amount of earnings on sales to third parties in relation to our voting interest, and as a result, receive a majority of the VIE’s residual returns. Sales to third parties did not have a material impact on our consolidated financial statements. We also have the power to direct activities of the VIE that most significantly impact the entity’s economic performance. As its primary beneficiary, we have consolidated the results of the VIE. Our net cumulative investment in the VIE was comprised of the following as of the dates indicated: (In thousands) January 2, 2022 January 3, 2021 Current assets $ 9,057 $ 6,411 Property, plant and equipment, net 8,573 8,295 Long-term deferred income taxes 1,023 2,431 Other assets 4,202 3,973 Current liabilities (3,895) (3,139) Other long-term liabilities (139) (393) Non-controlling interest (3,803) (2,073) Net assets of the VIE consolidated by Masonite $ 15,018 $ 15,505 Current assets include $4.9 million and $2.4 million of cash and cash equivalents as of January 2, 2022, and January 3, 2021, respectively. Assets recognized as a result of consolidating this VIE do not represent additional assets that could be used to satisfy claims against our general assets. Furthermore, liabilities recognized as a result of consolidating these entities do not represent additional claims on our general assets; rather, they represent claims against the specific assets of the consolidated VIE. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Jan. 02, 2022 | |
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: January 2, 2022 January 3, 2021 (In millions) Fair Value Carrying Value Fair Value Carrying Value 3.50% senior unsecured notes due 2030 $ 373,238 $ 370,593 $ — $ — 5.375% senior unsecured notes due 2028 526,730 495,128 536 494 5.750% senior unsecured notes due 2026 — — 316 297 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. |
Subsequent Events (Notes)
Subsequent Events (Notes) | 12 Months Ended |
Jan. 02, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsOn February 21, 2022, the Company's Board of Directors approved a new share repurchase program allowing the Company to repurchase up to an additional $200.0 million of its outstanding common shares. The new $200.0 million authorization is in addition to the four previously authorized share repurchase authorizations. In addition, the Company announced that its Board of Directors has authorized it to enter into an accelerated share repurchase ("ASR") transaction as part of the new share repurchase program. The Company intends to enter into an ASR transaction during the first quarter of 2022 for the repurchase of $100.0 million of its outstanding common shares. |
Business Overview and Signifi_2
Business Overview and Significant Accounting Policies (Policies) | 12 Months Ended |
Jan. 02, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation We prepare these consolidated financial statements in accordance with accounting principles generally accepted in the United States of America ("GAAP"). These consolidated financial statements include the accounts of Masonite International Corporation, a company incorporated under the laws of British Columbia, and its subsidiaries, as of January 2, 2022, and January 3, 2021, and for the years ended January 2, 2022, January 3, 2021, and December 29, 2019. Our fiscal year is the 52- or 53-week period ending on the Sunday closest to December 31. In a 52-week year, each fiscal quarter consists of 13 weeks. For ease of disclosure, the 13-week periods are referred to as three-month periods and the 52- or 53-week periods are referred to as years. Our 2020 fiscal year, which ended on January 3, 2021, contained 53 weeks of operating results, with the additional week occurring in the fourth quarter. |
Adoption of Recent Accounting Pronouncements | Adoption of Recent Accounting Pronouncements 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. We have adopted the new guidance prospectively as of January 4, 2021, the beginning of fiscal year 2021, and the adoption did not have a material impact 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 is effective for annual periods ending after December 15, 2020; early adoption is permitted and retrospective application is required. We adopted the new guidance using a retrospective approach as of January 3, 2021, the end of fiscal year 2020, and the adoption did not have a material impact on our financial statements or disclosures. In June 2016, the FASB issued ASU 2016-13, "Financial Instruments—Credit Losses (Topic 326)," which replaces the incurred loss methodology for recognizing credit losses with a current expected credit losses model. This standard applies to all financial assets, including trade receivables. Our current accounts receivable policy is described in detail in Note 1 and uses historical, current and forecasted information to estimate all expected credit losses in our existing account receivable balances. The guidance is effective for annual periods beginning after December 15, 2019, including interim periods within those fiscal years; early adoption is permitted and modified retrospective application is required. We adopted the new guidance using a modified retrospective approach as of December 31, 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 31, 2019. Other Recent Accounting Pronouncements not yet Adopted In December 2021, the FASB issued ASU 2021-10, "Government Assistance," which requires annual disclosures that increase the transparency of transactions involving government grants, including (1) the types of transactions, (2) the accounting for those transactions and (3) the effect of those transactions on an entity's financial statements. The guidance is effective for annual periods beginning after December 15, 2021, with early adoption permitted. We are in the process of evaluating this guidance to determine the impact it may have on our financial statements. |
Principles of consolidation | Principles of consolidation:These consolidated financial statements include the accounts of Masonite and our subsidiaries and the accounts of any variable interest entities for which we are the primary beneficiary. Intercompany accounts and transactions have been eliminated upon consolidation. The results of subsidiaries acquired during the periods presented are consolidated from their respective dates of acquisition using the acquisition method. Subsidiaries are prospectively deconsolidated as of the date when we no longer have effective control of the entity. |
Translation of consolidated financial statements into U.S. dollars | Translation of consolidated financial statements into U.S. dollars:These consolidated financial statements are expressed in U.S. dollars. The accounts of the majority of our self-sustaining foreign operations are maintained in functional currencies other than the U.S. dollar. Assets and liabilities for these subsidiaries have been translated into U.S. dollars at the exchange rates prevailing at the end of the period and results of operations at the average exchange rates for the period. Unrealized exchange gains and losses arising from the translation of the financial statements of our non-U.S. functional currency operations are accumulated in the cumulative translation adjustments account in accumulated other comprehensive loss. For our foreign subsidiaries where the U.S. dollar is the functional currency, all foreign currency-denominated accounts are remeasured into U.S. dollars. Unrealized exchange gains and losses arising from remeasurements of foreign currency-denominated assets and liabilities are included within other (income) expense, net in the consolidated statements of income and comprehensive income. Gains and losses arising from international intercompany transactions that are of a long-term investment nature are reported in the same manner as translation gains and losses. Realized exchange gains and losses are included in net income for the periods presented. |
Cash and cash equivalents | Cash and cash equivalents:Cash includes cash equivalents which are short-term highly liquid investments with original maturities of three months or less. |
Restricted cash | Restricted cash:Restricted cash includes cash we have placed as collateral for standby letters of credit. The letters of credit guarantee payment to third parties in the event the company is in breach of contract terms as detailed in each letter of credit. |
Accounts receivable | Accounts receivable: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 the 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 income and comprehensive income. Generally, we do not require collateral for our accounts receivable. |
Inventories | Inventories: Raw materials and finished goods are valued at the lower of cost or net realizable value. Cost is determined on a first in, first out basis. In determining the net realizable value, we consider factors such as yield, turnover, expected future demand and past experience. The cost of inventories includes all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition. The costs of conversion of inventories include costs directly related to the units of production, such as direct labor. They also include a systematic allocation of fixed and variable production overheads that are incurred in converting raw materials into finished goods. Fixed production overheads are those indirect costs of production that remain relatively constant regardless of the volume of production, such as depreciation and maintenance of factory buildings and equipment, and the cost of factory management and administration. Variable production overheads are those indirect costs of production that vary directly, or nearly directly, with the volume of production, such as indirect materials and indirect labor. To determine the cost of inventory, we allocate fixed expenses to the cost of production based on the normal capacity, which refers to a range of production levels and is considered the production expected to be achieved over a number of periods or seasons under normal circumstances, taking into account the loss of capacity resulting from planned maintenance. Fixed overhead costs allocated to each unit of production are not increased due to abnormally low production. Those excess costs are recognized as a current period expense. When a production facility is completely shut down temporarily, it is considered idle, and all related expenses are charged to cost of goods sold. |
Property, plant and equipment | Property, plant and equipment: Property, plant and equipment are stated at cost. Depreciation is recorded based on the carrying values of buildings, machinery and equipment using the straight-line method over the estimated useful lives set forth as follows: Useful Life (Years) Buildings 20 - 40 Machinery and equipment Tooling 10 - 25 Machinery and equipment 5 - 25 Molds and dies 12 - 25 Office equipment, fixtures and fittings 3 - 12 Information technology systems 5 - 15 Improvements and major maintenance that extend the life of an asset are capitalized; other repairs and maintenance are expensed as incurred. When assets are retired or otherwise disposed, their carrying values and accumulated depreciation are removed from the accounts. Property, plant and equipment are tested for impairment when events or changes in circumstances indicate that the carrying value of an asset or asset group may not be recoverable. An impairment loss is recognized when the carrying amount of an asset or asset group being tested for recoverability exceeds the sum of the undiscounted cash flows expected from its use and disposal. Impairments are measured as the amount by which the carrying amount of the asset or asset group exceeds its fair value, as determined using a discounted cash flows approach when quoted market prices are not available. |
Leases | Leases:We determine if a contract is a lease at inception or upon acquisition and reevaluate each time a lease contract is amended or otherwise modified. A lease will be classified as an operating lease if it does not meet any of the criteria for a finance lease. Those criteria include the transfer of ownership of the underlying asset by the end of the lease term; an option to purchase the underlying asset that we would be reasonably certain to exercise; the lease term is for the major part of the remaining economic life of the underlying asset; the present value of the sum of the lease payments and any residual value guaranteed by us that is not already reflected in the lease payments equals or exceeds substantially all of the fair value of the underlying asset or if the underlying asset is of such a specialized nature that it is expected to have no alternative use to the lessor at the end of the lease term. The assets and liabilities relating to operating leases are included in operating lease right-of-use assets, accrued expenses, and long-term operating lease liabilities in our consolidated balance sheets. The assets and liabilities relating to finance leases are included in property, plant and equipment, net and other liabilities in our consolidated balance sheets. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the respective lease commencement date based on the present value of lease payments over the expected lease term. Since our leases do not specify implicit discount rates, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The operating lease ROU asset also includes any initial direct costs and is adjusted for lease incentives and prepaid or accrued rent. The lease term begins on the date when the lessor makes the underlying asset available for use to us, and our expected lease terms include options to extend the lease when it is reasonably certain that we will exercise those options. Lease payments are recognized in the consolidated statements of income and comprehensive income on a straight-line basis over the expected lease term. Leases with an initial term of 12 months or less are not recorded on the balance sheet, with the related lease expense recognized on a straight-line basis over the lease term. Lease and non-lease components of a contract are combined into a single lease component for accounting purposes. one |
Goodwill | Goodwill: We use the acquisition method of accounting for all business combinations, and we evaluate all business combinations for intangible assets that should be recognized apart from goodwill. Goodwill adjustments are recorded for the effect on goodwill of changes to net assets acquired during the measurement period (up to one year from the date of acquisition) for new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date. Goodwill is not amortized, but instead is tested annually for impairment on the last day of fiscal November, or more frequently if events or changes in circumstances indicate the carrying amount may not be recoverable. The test for impairment is performed at the reporting unit level by comparing the reporting unit’s carrying amount to its fair value. Possible impairment in goodwill is first analyzed using qualitative factors such as macroeconomic and market conditions, changing costs and actual and projected performance, amongst others, to determine whether it is more likely than not that the book value of the reporting unit exceeds its fair value. If it is determined more likely than not that the book value exceeds fair value, a quantitative analysis is performed to test for impairment. When quantitative steps are determined necessary, the fair values of the reporting units are estimated through the use of discounted cash flow analysis and market multiples. If the carrying amount exceeds fair value, then goodwill is impaired. Any impairment in goodwill is measured as the excess of the carrying value of goodwill over the fair value. In 2021 and 2020, we recorded $59.5 million and $51.5 million, respectively, in impairment charges related to the Architectural reporting unit. See Note 14 for further information. There were no impairment charges recorded against goodwill in 2019. |
Intangible assets | Intangible assets: Intangible assets with definite lives include customer relationships, patents, system software development and acquired trademarks and tradenames. Definite lived intangible assets are amortized over their estimated useful lives. Information pertaining to the estimated useful lives of intangible assets is as follows: Estimated Useful Life Customer relationships Over expected relationship period Patents Over expected useful life System software development Over expected useful life Acquired trademarks and tradenames Straight-line over expected useful life Amortizable intangible assets are tested for impairment whenever events or changes in circumstances indicate that the carrying value may be greater than fair value. An impairment loss is recognized when the estimate of undiscounted future cash flows generated by such assets is less than the carrying amount. Measurement of the impairment loss is based on the fair value of the asset. Fair value is measured using discounted cash flows. Indefinite lived intangible assets are not amortized, but instead are tested for impairment annually on the last day of fiscal November, or more frequently if events or circumstances indicate the carrying value may exceed the fair value. |
Income taxes | Income taxes: We use the asset and liability method of accounting for income taxes. Under the asset and liability method, deferred tax assets and liabilities are recognized for the deferred tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities due to a change in tax rates is recognized in income in the period that includes the date of enactment. A valuation allowance is recorded to reduce deferred tax assets to an amount that is anticipated to be realized on a more likely than not basis. We account for uncertain taxes in accordance with ASC 740, "Income Taxes." The initial benefit recognition model follows a two-step approach. First, we evaluate if the tax position is more likely than not of being sustained if audited based solely on the technical merits of the position. Second, we measure the appropriate amount of benefit to recognize. This is calculated as the largest amount of tax benefit that has a greater than 50% likelihood of ultimately being realized upon settlement. Subsequently at each reporting date, the largest amount that has a greater than 50% likelihood of ultimately being realized, based on information available at that date, will be measured and recognized. We recognize interest and penalties related to unrecognized tax benefits within the income tax expense line in the consolidated statements of income and comprehensive income. Accrued interest and penalties are included within the related tax liability line in the consolidated balance sheets. |
Employee future benefits | Employee future benefits:We maintain defined benefit pension plans. Benefits under the plans were frozen or curtailed at various times in the past. Earnings are charged with the cost of benefits earned by employees as services are rendered. The cost reflects management’s best estimates of the pension plans’ expected investment yields, wage and salary escalation, mortality of members, terminations and the ages at which members will retire. Changes in these assumptions could impact future pension expense. Service cost components are recognized within cost of goods sold and non-service cost components are recognized within other (income) expense, net in the consolidated statements of income and comprehensive income. The excess of the net actuarial gain (loss) over 10% of the greater of the benefit obligation or fair value of plan assets at the beginning of the year is amortized over the average remaining service lives of the members. Assets are valued at fair value for the purpose of calculating the expected return on plan assets. Past service costs arising from plan amendments are amortized on a straight-line basis over the average remaining service period of employees active at the date of amendment. When a restructuring of a benefit plan gives rise to both a curtailment and a settlement of obligations, the curtailment is accounted for prior to the settlement. Curtailment gains are offset against unrecognized losses and any excess gains and all curtailment losses are recorded in the period in which the curtailment occurs. |
Restructuring costs | Restructuring costs: Restructuring costs include all salary-related severance benefits that are accrued and expensed when a restructuring plan has been put into place, the plan has received approval from the appropriate level of management and the benefit is probable and reasonably estimable. In addition to salary-related costs, we incur other restructuring costs when facilities are closed or capacity is realigned within the organization. Upon termination of a contract we record liabilities and expenses pursuant to the terms of the relevant agreement. For non-contractual restructuring activities, liabilities and expenses are measured and recorded at fair value in the period in which they are incurred. Restructuring-related costs are presented separately in the consolidated statements of income and comprehensive income whereas non-restructuring severance benefits are charged to cost of goods sold or selling, general and administration expense depending on the nature of the job responsibilities. |
Financial instruments | Financial instruments: We have applied a framework consistent with ASC 820, "Fair Value Measurement and Disclosure," and have disclosed all financial assets and liabilities measured at fair value and non-financial assets and liabilities measured at fair value on a non-recurring basis (at least annually). We classify and disclose assets and liabilities carried at fair value in one of the following three categories: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs that are not corroborated by market data. The estimated fair value of a financial instrument is the amount at which the instrument could be exchanged in a current transaction between willing parties, other than a forced or liquidation sale. These estimates, although based on the relevant market information about the financial instrument, are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. (o) Share based compensation expense: We have a share based compensation plan, which is described in detail in Note 12. We apply the fair value method of accounting using comprehensive valuation models, including the Black-Scholes-Merton option pricing model, to determine the compensation expense. |
Revenue recognition and Vendor rebates | Revenue recognition:Revenue from the sale of products is recognized when control of the promised goods is transferred to our customers based on the agreed-upon shipping terms, in an amount that reflects the consideration to which we expect to be entitled in exchange for those goods or services. Volume rebates, expected returns, discounts and other incentives to customers are considered variable consideration and we estimate these amounts based on the expected amount to be provided to customers and reduce the revenues we recognize accordingly. Sales taxes and value added taxes assessed by governmental entities are excluded from the measurement of consideration expected to be received. Shipping and handling costs incurred after a customer has taken possession of our goods are treated as a fulfillment cost and are not considered a separate performance obligation. Shipping and other transportation costs charged to customers are recorded in both revenues and cost of goods sold in the consolidated statements of income and comprehensive income.Vendor rebates:We account for cash consideration received from a vendor as a reduction of cost of goods sold and inventory, in the consolidated statements of income and comprehensive income and consolidated balance sheets, respectively. The cash consideration received represents agreed-upon vendor rebates that are earned in the normal course of operations. |
Product warranties | Product warranties:We warrant certain qualitative attributes of our door products. We have recorded provisions for estimated warranty and related costs within accrued expenses on the consolidated balance sheets, based on historical experience and we periodically adjust these provisions to reflect actual experience. |
Advertising costs | Advertising costs:We recognize advertising costs as they are incurred. Advertising costs incurred primarily relate to tradeshows and are included within selling, general and administration expense in the consolidated statements of income and comprehensive income. Advertising costs were $14.2 million, $10.8 million and $14.2 million in the years ended January 2, 2022, January 3, 2021, and December 29, 2019, respectively. |
Research and development costs | Research and development costs:We recognize research and development costs as they are incurred. Research and development costs incurred primarily relate to the development of new products and the improvement of manufacturing processes, and are primarily included within cost of goods sold in the consolidated statements of income and comprehensive income. These costs exclude the significant investments in other areas such as advanced automation. Research and development costs were $18.4 million, $17.0 million and $7.2 million in the years ended January 2, 2022, January 3, 2021, and December 29, 2019, respectively. |
Insurance losses and proceeds | Insurance losses and proceeds:All involuntary conversions of property, plant and equipment are recorded as losses within loss (gain) on disposal of property, plant and equipment, which is included within selling, general and administration expense in the consolidated statements of income and comprehensive income and as reductions to property, plant and equipment in the consolidated balance sheets. Any subsequent proceeds received for insured losses of property, plant and equipment are also recorded as gains within loss (gain) on disposal of property, plant and equipment, and are classified as cash flows from investing activities in the consolidated statements of cash flows in the period in which the cash is received. Proceeds received for business interruption recoveries are recorded as a reduction to selling, general and administration expense in the consolidated statements of income and comprehensive income and are classified as cash flows from operating activities in the consolidated statements of cash flows in the period in which an acknowledgment from the insurance carrier of settlement or partial settlement of a non-refundable nature has been presented to us. |
Equity investments | Equity investments:We account for investments in affiliates of between 20% and 50% ownership, over which we have significant influence, using the equity method. We record our share of earnings of the affiliate within other income, net of expense, in the consolidated statements of income and comprehensive income and dividends as a reduction of the investment in the affiliate in the consolidated balance sheets when declared. |
Segment Reporting | Segment reporting:Our reportable segments are organized and managed principally by end market: North American Residential, Europe and Architectural. The Corporate & Other category includes unallocated corporate costs and the results of immaterial operating segments that 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. |
Use of estimates | Use of estimates: The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions which affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of net sales and expenses during the reporting periods. During 2021, there were no material changes in the methods or policies used to establish estimates and assumptions. Actual results may differ from our estimates. |
Business Overview and Signifi_3
Business Overview and Significant Accounting Policies (Tables) | 12 Months Ended |
Jan. 02, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Property, Plant and Equipment Useful Lives | Depreciation is recorded based on the carrying values of buildings, machinery and equipment using the straight-line method over the estimated useful lives set forth as follows: Useful Life (Years) Buildings 20 - 40 Machinery and equipment Tooling 10 - 25 Machinery and equipment 5 - 25 Molds and dies 12 - 25 Office equipment, fixtures and fittings 3 - 12 Information technology systems 5 - 15 |
Schedule of Useful Lives of Intangible Assets | Definite lived intangible assets are amortized over their estimated useful lives. Information pertaining to the estimated useful lives of intangible assets is as follows: Estimated Useful Life Customer relationships Over expected relationship period Patents Over expected useful life System software development Over expected useful life Acquired trademarks and tradenames Straight-line over expected useful life |
Schedule of Product Warranty Liability | The rollforward of our warranty provision is as follows for the periods indicated: Year Ended (In thousands) January 2, 2022 January 3, 2021 December 29, 2019 Balance at beginning of period $ 4,635 $ 4,414 $ 4,270 Additions charged to expense 4,646 6,807 7,142 Deductions (5,266) (6,586) (6,998) Balance at end of period $ 4,015 $ 4,635 $ 4,414 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Jan. 02, 2022 | |
Receivables [Abstract] | |
Rollforward of Allowance for Doubtful Accounts | The changes in the allowance for doubtful accounts were as follows for the periods indicated: Year Ended (In thousands) January 2, 2022 January 3, 2021 December 29, 2019 Balance at beginning of period $ 2,809 $ 1,752 $ 2,109 Additions charged to expense 242 1,443 78 Deductions (964) (386) (435) Balance at end of period $ 2,087 $ 2,809 $ 1,752 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Jan. 02, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | The amounts of inventory on hand were as follows as of the dates indicated: (In thousands) January 2, 2022 January 3, 2021 Raw materials $ 275,269 $ 191,784 Finished goods 78,324 75,483 Provision for obsolete or aged inventory (6,117) (6,305) Inventories, net $ 347,476 $ 260,962 |
Schedule of inventory provision | The rollforward of our inventory provision is as follows for the periods indicated: Year Ended (In thousands) January 2, 2022 January 3, 2021 December 29, 2019 Balance at beginning of period $ 6,305 $ 7,136 $ 7,764 Additions charged to expense 3,402 5,150 4,159 Deductions (3,590) (5,981) (4,787) Balance at end of period $ 6,117 $ 6,305 $ 7,136 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Jan. 02, 2022 | |
Property, Plant and Equipment [Abstract] | |
Amounts of property, plant, and equipment | The carrying amounts of our property, plant and equipment and accumulated depreciation were as follows as of the dates indicated: (In thousands) January 2, 2022 January 3, 2021 Land $ 22,851 $ 25,572 Buildings 216,510 215,600 Machinery and equipment 783,913 757,289 Property, plant and equipment, gross 1,023,274 998,461 Accumulated depreciation (396,477) (373,335) Property, plant and equipment, net $ 626,797 $ 625,126 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jan. 02, 2022 | |
Leases [Abstract] | |
Lease cost | The following table summarizes the components of lease expense recorded in the consolidated statements of income and comprehensive income for the periods indicated: (In thousands) Year Ended January 2, 2022 January 3, 2021 December 29, 2019 Operating lease expense $ 47,263 $ 38,922 $ 39,025 Finance lease expense Amortization of leased assets 865 882 649 Interest on lease liabilities 1,443 1,458 1,063 Total lease expense $ 49,571 $ 41,262 $ 40,737 The following table includes a detail of lease assets and liabilities included in the consolidated balance sheet as of the period indicated: (In thousands) January 2, 2022 January 3, 2021 Operating lease right-of-use assets $ 176,445 $ 146,806 Finance lease right-of-use assets (1) 23,931 24,796 Total lease assets, net $ 200,376 $ 171,602 Current portion of operating lease liabilities $ 25,551 $ 22,667 Long-term operating lease liabilities 165,670 136,235 Long-term finance lease liabilities 27,043 26,926 Total lease liabilities $ 218,264 $ 185,828 ____________ (1) Net of accumulated amortization of $2.4 million and $1.5 million, as of January 2, 2022 , and January 3, 2021 , respectively. The following table is a summary of the weighted-average remaining lease terms and weighted-average discount rates of the Company's leases as of the period indicated: January 2, 2022 January 3, 2021 Weighted-average remaining lease term (years) Operating leases 11.8 10.4 Finance leases 27.6 28.6 Weighted-average discount rate (1) Operating leases 4.1 % 4.4 % Finance leases 5.4 % 5.4 % ____________ (1) Based on the Company's incremental borrowing rate at lease commencement or modification. |
Maturities of operating lease liabilities | As of January 2, 2022, the future minimum lease payments under non-cancelable leases are as follows: (In thousands) Operating Leases Finance Leases Fiscal year: 2022 $ 32,546 $ 1,365 2023 28,344 1,287 2024 25,829 1,445 2025 22,622 1,488 2026 16,105 1,663 Thereafter 125,751 49,831 Total minimum lease payments 251,197 57,079 Less imputed interest (59,976) (30,036) Present value of future lease payments $ 191,221 $ 27,043 |
Maturities of finance lease liabilities | As of January 2, 2022, the future minimum lease payments under non-cancelable leases are as follows: (In thousands) Operating Leases Finance Leases Fiscal year: 2022 $ 32,546 $ 1,365 2023 28,344 1,287 2024 25,829 1,445 2025 22,622 1,488 2026 16,105 1,663 Thereafter 125,751 49,831 Total minimum lease payments 251,197 57,079 Less imputed interest (59,976) (30,036) Present value of future lease payments $ 191,221 $ 27,043 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Jan. 02, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in carrying amount of goodwill | Changes in the carrying amount of goodwill were as follows as of the dates indicated: (In thousands) North American Residential Europe Architectural Total December 29, 2019 $ 6,590 $ 66,602 $ 111,000 $ 184,192 Goodwill from 2020 acquisitions 3,132 — — 3,132 Goodwill impairment — — (51,515) (51,515) Foreign exchange fluctuations 8 2,837 38 2,883 January 3, 2021 9,730 69,439 59,523 138,692 Measurement period adjustment 160 — — 160 Goodwill related to 2021 divestiture — (1,395) — (1,395) Goodwill impairment — — (59,526) (59,526) Foreign exchange fluctuations 3 (835) 3 (829) January 2, 2022 $ 9,893 $ 67,209 $ — $ 77,102 |
Cost and accumulated amortized values of intangible assets | The cost and accumulated amortization values of our intangible assets were as follows as of the dates indicated: January 2, 2022 January 3, 2021 (In thousands) Cost Accumulated Amortization Net Book Value Cost Accumulated Amortization Net Book Value Definite life intangible assets: Customer relationships $ 176,779 $ (132,840) $ 43,939 $ 178,078 $ (119,689) $ 58,389 Patents 34,438 (28,148) 6,290 33,573 (26,211) 7,362 Software 36,354 (33,281) 3,073 35,620 (33,041) 2,579 Trademarks and tradenames 34,210 (14,063) 20,147 34,604 (10,862) 23,742 Other 94 (94) — 966 (964) 2 Total definite life intangible assets 281,875 (208,426) 73,449 282,841 (190,767) 92,074 Indefinite life intangible assets: Trademarks and tradenames 77,038 — 77,038 77,318 — 77,318 Total intangible assets $ 358,913 $ (208,426) $ 150,487 $ 360,159 $ (190,767) $ 169,392 |
Estimated future amortization of intangible assets with definite lives | The estimated future amortization of intangible assets with definite lives as of January 2, 2022, is as follows: (In thousands) Fiscal year: 2022 $ 16,594 2023 15,099 2024 13,521 2025 11,318 2026 7,957 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Jan. 02, 2022 | |
Accrued Expenses [Abstract] | |
Schedule of Accrued Expenses | The details of our accrued expenses were as follows as of the dates indicated: (In thousands) January 2, 2022 January 3, 2021 Accrued payroll $ 66,048 $ 86,517 Accrued rebates 51,200 49,531 Current portion of operating lease liabilities 25,551 22,667 Accrued interest 17,125 16,435 Accrued legal settlement — 40,000 Other accruals 77,376 62,566 Total accrued expenses $ 237,300 $ 277,716 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Jan. 02, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | (In thousands) January 2, 2022 January 3, 2021 3.50% senior unsecured notes due 2030 $ 375,000 $ — 5.375% senior unsecured notes due 2028 500,000 500,000 5.750% senior unsecured notes due 2026 — 300,000 Debt issuance costs (9,279) (8,694) Other long-term debt — 936 Total long-term debt $ 865,721 $ 792,242 |
Share Based Compensation Plans
Share Based Compensation Plans (Tables) | 12 Months Ended |
Jan. 02, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Stock appreciation rights award activity | Twelve Months Ended January 2, 2022 Stock Appreciation Rights Aggregate Intrinsic Value (in thousands) Weighted Average Exercise Price Average Remaining Contractual Life (Years) Outstanding, beginning of period 207,094 $ 7,409 $ 62.56 7.5 Granted 28,707 107.68 Exercised (69,223) 4,305 57.79 Forfeited (7,853) 82.76 Outstanding, end of period 158,725 $ 7,324 $ 71.81 7.5 Exercisable, end of period 81,474 $ 4,451 $ 63.32 6.9 Twelve Months Ended January 3, 2021 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 (209,793) 7,033 48.59 Forfeited (19,995) 62.10 Outstanding, end of period 207,094 $ 7,409 $ 62.56 7.5 Exercisable, end of period 94,883 $ 3,736 $ 58.97 6.4 Twelve Months Ended December 29, 2019 Stock Appreciation Rights Aggregate Intrinsic Value (in thousands) Weighted Average Exercise Price Average Remaining Contractual Life (Years) Outstanding, beginning of period 514,313 $ 7,254 $ 39.01 4.6 Granted 111,230 57.29 Exercised (212,767) 9,379 19.68 Forfeited (8,329) 67.24 Outstanding, end of period 404,447 $ 7,615 $ 53.62 4.7 Exercisable, end of period 230,440 $ 5,675 $ 47.92 2.5 |
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: 2021 Grants 2020 Grants 2019 Grants SAR value (model conclusion) $ 28.08 $ 20.56 $ 12.26 Risk-free rate 0.8 % 1.2 % 2.2 % Expected dividend yield 0.0 % 0.0 % 0.0 % Expected volatility 25.2 % 22.6 % 21.9 % Expected term (years) 6.0 6.0 6.0 |
Restricted stock units award activity | Year Ended January 2, 2022 January 3, 2021 December 29, 2019 Total Restricted Stock Units Outstanding Weighted Average Grant Date Fair Value Total Restricted Stock Units Outstanding Weighted Average Grant Date Fair Value Total Restricted Stock Units Outstanding Weighted Average Grant Date Fair Value Outstanding, beginning of period 488,057 $ 68.15 523,207 $ 59.58 429,027 $ 66.03 Granted 202,268 110.50 218,943 79.71 303,740 56.31 Performance adjustment (1) 14,474 63.05 (59,936) 67.50 (21,953) 57.51 Delivered (176,915) 66.40 (115,340) 60.30 (120,982) 62.03 Withheld to cover (2) (33,989) (16,234) (20,024) Forfeited (51,789) 80.81 (62,583) 53.80 (46,601) 63.62 Outstanding, end of period 442,106 $ 87.24 488,057 $ 68.15 523,207 $ 59.58 ____________ (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) | 12 Months Ended |
Jan. 02, 2022 | |
Restructuring and Related Activities [Abstract] | |
Total restructuring costs by plan | The following table summarizes the restructuring charges recorded for the periods indicated: Year Ended January 2, 2022 (In thousands) North American Residential Europe Architectural Corporate & Other Total 2021 Plan $ — $ — $ 1,666 $ — $ 1,666 2020 Plan 23 — 3,499 23 3,545 2019 Plan (172) — — 528 356 Total Restructuring Costs $ (149) $ — $ 5,165 $ 551 $ 5,567 Year Ended January 3, 2021 (In thousands) North American Residential Europe Architectural Corporate & Other Total 2020 Plan $ 29 $ — $ 1,733 $ — $ 1,762 2019 Plan 3,863 (37) 1,165 1,048 6,039 2018 Plan 435 — — — 435 Total Restructuring Costs $ 4,327 $ (37) $ 2,898 $ 1,048 $ 8,236 Year Ended December 29, 2019 (In thousands) North American Residential Europe Architectural Corporate & Other Total 2019 Plan $ 5,459 $ 396 $ 506 $ 1,019 $ 7,380 2018 Plan 1,470 926 — — 2,396 Total Restructuring Costs $ 6,929 $ 1,322 $ 506 $ 1,019 $ 9,776 Cumulative Amount Incurred Through January 2, 2022 (In thousands) North American Residential Europe Architectural Corporate & Other Total 2021 Plan $ — $ — $ 1,666 $ — $ 1,666 2020 Plan 52 — 5,232 23 5,307 2019 Plan 9,150 359 1,671 2,595 13,775 2018 Plan 2,180 2,275 — — 4,455 Total Restructuring Costs $ 11,382 $ 2,634 $ 8,569 $ 2,618 $ 25,203 |
Schedule of restructuring reserve by type of cost | The changes in the accrual for restructuring by activity were as follows for the periods indicated: (In thousands) January 3, Severance Closure Costs Cash Payments January 2, 2021 Plan $ — $ 513 $ 1,153 $ (1,641) $ 25 2020 Plan 1,492 264 3,281 (5,015) 22 2019 Plan 291 175 181 (645) 2 Total $ 1,783 $ 952 $ 4,615 $ (7,301) $ 49 (In thousands) December 29, 2019 Severance Closure Costs Cash Payments January 3, 2020 Plan $ — $ 1,506 $ 256 $ (270) $ 1,492 2019 Plan 1,535 1,752 4,287 (7,283) 291 2018 Plan — 163 272 (435) — Total $ 1,535 $ 3,421 $ 4,815 $ (7,988) $ 1,783 (In thousands) December 30, 2018 Severance Closure Costs Cash Payments December 29, 2019 2019 Plan $ — $ 5,100 $ 2,280 $ (5,845) $ 1,535 2018 Plan 596 1,995 401 (2,992) — Other 58 — — (58) — Total $ 654 $ 7,095 $ 2,681 $ (8,895) $ 1,535 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 02, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | For financial reporting purposes, income before income taxes includes the following components: Year Ended (In thousands) January 2, 2022 January 3, 2021 December 29, 2019 Income before income tax expense: Canada $ 44,935 $ 54,355 $ 21,345 Foreign 99,031 47,945 45,003 Total income before income tax expense $ 143,966 $ 102,300 $ 66,348 |
Income tax expense (benefit) for income taxes | Income tax expense for income taxes consists of the following: Year Ended (In thousands) January 2, 2022 January 3, 2021 December 29, 2019 Current income tax expense: Canada $ 9,392 $ 8,283 $ 7,600 Foreign 30,499 30,413 6,417 Total current income tax expense: 39,891 38,696 14,017 Deferred income tax (benefit) expense: Canada 3,626 (235) 1,497 Foreign 1,255 (9,850) 1,795 Total deferred income tax (benefit) expense: 4,881 (10,085) 3,292 Income tax expense $ 44,772 $ 28,611 $ 17,309 |
Schedule of Effective Income Tax Rate Reconciliation | A summary of the differences between expected income tax expense calculated at the Canadian statutory rate and the reported consolidated income tax expense (benefit) is as follows: Year Ended (In thousands) January 2, 2022 January 3, 2021 December 29, 2019 Income tax expense computed at statutory income tax rate $ 38,137 $ 27,130 $ 17,702 Foreign rate differential (12,370) (4,900) (4,503) Permanent differences 3,843 (1,286) 1,195 Disposal of subsidiaries 1,651 493 2,751 Income attributable to a permanent establishment 2,608 2,253 148 Change in valuation allowance 1,569 (9,271) (1,463) Tax exempt income — — (2,451) Income tax credits (5,591) (1,831) (1,869) Change in tax rate (1) 2,706 883 267 Goodwill impairment 11,296 7,965 — Limitation on executive compensation 1,904 2,209 773 Withholding and other taxes 1,761 2,435 2,006 Nondeductible interest — 1,714 4,814 Other (1) (2,742) 817 (2,061) Income tax expense $ 44,772 $ 28,611 $ 17,309 |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities are presented below: Year Ended (In thousands) January 2, 2022 January 3, 2021 Deferred tax assets: Non-capital loss carryforwards $ 11,142 $ 13,860 Capital loss carryforwards 6,740 9,375 Deferred interest expense 12,518 6,845 Pension and post-retirement liability 177 679 Accruals and reserves currently not deductible for tax purposes 18,208 31,378 Share based compensation 4,456 4,630 Income tax credits 5,466 5,083 Lease right-of-use assets 57,735 48,467 Other 1,142 668 Total deferred tax assets 117,584 120,985 Valuation allowance (10,286) (5,970) Total deferred tax assets, net of valuation allowance 107,298 115,015 Deferred tax liabilities: Plant and equipment (77,807) (79,208) Intangibles (23,147) (26,866) Basis difference in subsidiaries (7,488) (7,354) Unrealized foreign exchange gain (287) (1,534) Lease liabilities (52,955) (44,673) Other (2,786) (3,122) Total deferred tax liabilities (164,470) (162,757) Net deferred tax liability $ (57,172) $ (47,742) |
Summary of Valuation Allowance | The following is a rollforward of the valuation allowance for deferred tax assets: Year Ended (In thousands) January 2, 2022 January 3, 2021 December 29, 2019 Balance at beginning of period $ 5,970 $ 15,569 $ 16,373 Additions charged to expense and other 4,473 851 2,863 Deductions (157) (10,450) (3,667) Balance at end of period $ 10,286 $ 5,970 $ 15,569 |
Summary of Operating Loss Carryforwards | We can apply these losses against future taxable income based on the period of expiration as follows: (In thousands) Canada Other Foreign Total 2022-2027 $ — $ 3,213 $ 3,213 2028-2042 21,520 — 21,520 Indefinitely — 8,988 8,988 Total tax losses carried forward $ 21,520 $ 12,201 $ 33,721 |
Schedule of Unrecognized Tax Benefits Roll Forward | The changes to our unrecognized tax benefits were as follows: Year Ended (In thousands) January 2, 2022 January 3, 2021 December 29, 2019 Unrecognized tax benefit at beginning of period $ 8,108 $ 8,156 $ 9,084 Gross increases in tax positions in current period 103 62 46 Gross decreases in tax positions in prior period (108) (110) (973) Gross increases in tax positions in prior period — 1 — Lapse of statute of limitations (511) (1) (1) Unrecognized tax benefit at end of period $ 7,592 $ 8,108 $ 8,156 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Jan. 02, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | Year Ended (In thousands, except share and per share information) January 2, 2022 January 3, 2021 December 29, 2019 Net income attributable to Masonite $ 94,501 $ 69,037 $ 44,602 Shares used in computing basic earnings per share 24,176,846 24,569,727 25,130,027 Effect of dilutive securities: Incremental shares issuable under share compensation plans 385,687 373,451 322,695 Shares used in computing diluted earnings per share 24,562,533 24,943,178 25,452,722 Basic earnings per common share attributable to Masonite $ 3.91 $ 2.81 $ 1.77 Diluted earnings per common share attributable to Masonite $ 3.85 $ 2.77 $ 1.75 Anti-dilutive instruments excluded from diluted earnings per common share 28,707 215,563 295,879 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Jan. 02, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Certain information with respect to reportable segments is as follows for the periods indicated: Year Ended January 2, 2022 (In thousands) North American Residential Europe Architectural Corporate & Other Total Sales $ 1,955,424 $ 342,172 $ 303,078 $ 20,014 $ 2,620,688 Intersegment sales (2,526) (7,640) (13,602) — (23,768) Net sales to external customers $ 1,952,898 $ 334,532 $ 289,476 $ 20,014 $ 2,596,920 Adjusted EBITDA $ 374,452 $ 60,624 $ (2,704) $ (19,766) $ 412,606 Depreciation and amortization 39,504 23,825 14,620 14,033 91,982 Interest expense, net — — — 46,123 46,123 Income tax expense — — — 44,772 44,772 Year Ended January 3, 2021 (In thousands) North American Residential Europe Architectural Corporate & Other Total Sales $ 1,640,323 $ 260,834 $ 358,049 $ 19,947 $ 2,279,153 Intersegment sales (2,204) (2,721) (17,153) — (22,078) Net sales to external customers $ 1,638,119 $ 258,113 $ 340,896 $ 19,947 $ 2,257,075 Adjusted EBITDA $ 347,822 $ 40,474 $ 34,201 $ (58,785) $ 363,712 Depreciation and amortization 37,705 23,732 17,735 12,601 91,773 Interest expense, net — — — 46,807 46,807 Income tax expense — — — 28,611 28,611 Year Ended December 29, 2019 (In thousands) North American Residential Europe Architectural Corporate & Other Total Sales $ 1,469,194 $ 323,137 $ 380,300 $ 23,941 $ 2,196,572 Intersegment sales (3,386) (1,506) (14,997) — (19,889) Net sales to external customers $ 1,465,808 $ 321,631 $ 365,303 $ 23,941 $ 2,176,683 Adjusted EBITDA $ 232,512 $ 46,219 $ 40,470 $ (35,817) $ 283,384 Depreciation and amortization 37,689 26,257 19,705 16,198 99,849 Interest expense, net — — — 46,489 46,489 Income tax benefit — — — 17,309 17,309 |
Reconciliation of consolidated Adjusted EBITDA to net income (loss) attributable to Masonite | A reconciliation of our consolidated Adjusted EBITDA to net income attributable to Masonite is set forth as follows for the periods indicated: Year Ended (In thousands) January 2, 2022 January 3, 2021 December 29, 2019 Net income attributable to Masonite $ 94,501 $ 69,037 $ 44,602 Plus: Depreciation 70,641 68,350 70,736 Amortization 21,341 23,423 29,113 Share based compensation expense 15,959 19,423 10,023 Loss on disposal of property, plant and equipment 1,316 6,234 6,396 Restructuring costs 5,567 8,236 9,776 Asset impairment 69,900 51,515 13,767 Loss on disposal of subsidiaries 8,590 2,091 14,260 Interest expense, net 46,123 46,807 46,489 Loss on extinguishment of debt 13,583 — 14,523 Other (income) expense, net 15,620 (5,217) 1,953 Income tax expense 44,772 28,611 17,309 Other items (1) — 40,550 — Net income attributable to non-controlling interest 4,693 4,652 4,437 Adjusted EBITDA $ 412,606 $ 363,712 $ 283,384 ____________ (1) Other items not part of our underlying business performance include $40,550 in legal reserves related to the settlement of U.S. class action litigation in the year ended January 3, 2021, and were recorded in selling, general and administration expenses within the consolidated statements of income and comprehensive income. Refer to Note 10. Commitments and Contingencies for additional information. |
Revenue from External Customers by Products and Services | Sales for the product lines are summarized as follows for the periods indicated: Year Ended (In thousands) January 2, 2022 January 3, 2021 December 29, 2019 Net sales to external customers: Interior products $ 1,654,379 $ 1,479,196 $ 1,427,459 Exterior products 813,605 647,241 628,301 Components 128,936 130,638 120,923 Total $ 2,596,920 $ 2,257,075 $ 2,176,683 |
Revenue from External Customers by Geographic Areas | Net sales information with respect to geographic areas exceeding 10% of consolidated net sales is as follows for the periods indicated: Year Ended (In thousands) January 2, 2022 January 3, 2021 December 29, 2019 Net sales to external customers from facilities in: United States $ 1,776,180 $ 1,595,398 $ 1,483,697 Canada 364,179 319,937 304,497 United Kingdom 300,008 218,382 281,888 Other 156,553 123,358 106,601 Total $ 2,596,920 $ 2,257,075 $ 2,176,683 |
Property, Plant and Equipment by Country | Geographic information regarding property, plant and equipment which exceed 10% of consolidated property, plant and equipment is as follows as of the dates indicated: (In thousands) January 2, 2022 January 3, 2021 United States $ 413,289 $ 403,126 Canada 50,187 61,201 Other 163,321 160,799 Total $ 626,797 $ 625,126 |
Employee Future Benefits (Table
Employee Future Benefits (Tables) | 12 Months Ended |
Jan. 02, 2022 | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Expected Benefit Payments | As of January 2, 2022, the estimated future benefit payments from the U.K. defined benefit pension plans for the following future periods are set forth as follows: (In thousands) Expected Future Benefit Payments Fiscal year: 2022 $ 1,111 2023 1,076 2024 1,178 2025 1,264 2026 1,219 2027 through 2031 7,025 Total estimated future benefit payments $ 12,873 |
UNITED STATES | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of AOCL Amounts | Amounts deferred in accumulated other comprehensive loss ("AOCL") is set forth for the periods indicated: Year Ended (In thousands) January 2, 2022 January 3, 2021 Net actuarial loss $ — $ 16,585 Prior service cost — 15 Total amount recognized in AOCL, pre-tax $ — $ 16,600 A reconciliation of the change in AOCL is set forth as follows for the periods indicated: Year Ended (In thousands) January 2, 2022 January 3, 2021 Net actuarial loss (gain) $ 7,790 $ 3,817 Amortization of: Curtailment recognition of prior service cost (15) (9) Settlement recognition of net loss (24,375) (653) Change in AOCL, pre-tax $ (16,600) $ 3,155 |
UNITED STATES | Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Net Benefit Costs | Information about the U.S. defined benefit pension plan is as follows for the periods indicated: Year Ended (In thousands) January 2, 2022 January 3, 2021 December 29, 2019 Components of net periodic benefit cost: Service cost $ 331 $ 309 $ 548 Interest cost 1,516 2,183 3,423 Expected return on assets (2,953) (5,328) (5,723) Amortization of actuarial net losses 1,047 662 1,521 Settlement loss 23,343 — 5,651 Net pension expense (benefit) $ 23,284 $ (2,174) $ 5,420 |
Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan | Information with respect to the assets, liabilities and net plan assets of the U.S. defined benefit pension plan is set forth as follows for the periods indicated: Year Ended (In thousands) January 2, 2022 January 3, 2021 Pension assets: Fair value of plan assets, beginning of year $ 86,464 $ 79,422 Company contributions 5,550 1,250 Actual return on plan assets (2,347) 10,113 Plan settlements (84,573) — Benefits paid (3,711) (3,965) Administrative expenses paid (1,383) (356) Fair value of plan assets, end of year — 86,464 Pension liability: Accrued benefit obligation, beginning of year 85,330 78,557 Current service cost 331 309 Interest cost 1,516 2,183 Plan settlements (84,573) — Actuarial loss 2,490 8,602 Benefits paid (3,711) (3,965) Administrative expenses paid (1,383) (356) Accrued benefit obligation, end of year — 85,330 Net plan assets, end of year $ — $ 1,134 |
Schedule of Allocation of Plan Assets | Information with respect to the amounts and types of securities that are held in the U.S. defined benefit pension plan is set forth as follows for the periods indicated: Year Ended January 2, 2022 January 3, 2021 (In thousands) Amount % of Total Plan Amount % of Total Plan Equity securities $ — — % $ — — % Debt securities — — % 86,464 100.0 % Other — — % — — % $ — — % $ 86,464 100.0 % |
Schedule of Assumptions Used | The weighted average actuarial assumptions adopted in measuring our U.S. accrued benefit obligations and costs prior to termination were as follows for the periods indicated: Year Ended January 2, 2022 January 3, 2021 December 29, 2019 Discount rate applied for: Accrued benefit obligation 2.4 % 2.4 % 3.3 % Net periodic pension cost 2.4 % 3.3 % 4.3 % Expected long-term rate of return on plan assets 3.5 % 3.5 % 6.8 % |
UNITED KINGDOM | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of AOCL Amounts | Amounts deferred in AOCL is set forth for the periods indicated: Year Ended (In thousands) January 2, 2022 January 3, 2021 Net actuarial loss $ 2,794 $ 5,372 Prior service cost 518 549 Total amount recognized in AOCL, pre-tax $ 3,312 $ 5,921 A reconciliation of the change in AOCL is set forth as follows for the periods indicated: Year Ended (In thousands) January 2, 2022 January 3, 2021 Net actuarial (gain) loss $ (2,298) $ (557) Amortization of: Prior service cost (25) (23) Net actuarial loss from prior years (264) (444) Translation adjustment (22) 218 Change in AOCL, pre-tax $ (2,609) $ (806) |
UNITED KINGDOM | Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Net Benefit Costs | Information about the U.K. defined benefit pension plan is as follows for the periods indicated: Year Ended (In thousands) January 2, 2022 January 3, 2021 December 29, 2019 Components of net periodic benefit cost: Interest cost $ 366 $ 536 $ 685 Expected return on assets (1,292) (1,021) (948) Amortization of actuarial net losses 289 340 246 Settlement loss — 127 — Net pension benefit $ (637) $ (18) $ (17) |
Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan | Information with respect to the assets, liabilities and net plan assets (accrued benefit obligation) of the U.K. defined benefit pension plan is as follows for the periods indicated: Year Ended (In thousands) January 2, 2022 January 3, 2021 Pension assets: Fair value of plan assets, beginning of year $ 31,222 $ 26,748 Company contributions 1,376 769 Actual return on plan assets 2,159 4,132 Benefits paid (919) (915) Plan settlements — (838) Translation adjustment (449) 1,326 Fair value of plan assets, end of year 33,389 31,222 Pension liability Accrued benefit obligation, beginning of year 35,394 32,601 Interest cost 366 536 Actuarial (gain) loss (1,431) 2,553 Benefits paid (919) (915) Plan settlements — (838) Translation adjustment (408) 1,457 Accrued benefit obligation, end of year 33,002 35,394 Net plan assets (accrued benefit obligation), end of year $ 387 $ (4,172) |
Schedule of Allocation of Plan Assets | Information with respect to the amounts and types of securities that are held in the U.K. defined benefit pension plan is set forth as follows for the periods indicated: Year Ended January 2, 2022 January 3, 2021 (In thousands) Amount % of Total Plan Amount % of Total Plan Equity securities $ 8,327 24.9 % $ 11,905 38.1 % Debt securities — — % — — % Other 25,062 75.1 % 19,317 61.9 % $ 33,389 100.0 % $ 31,222 100.0 % |
Schedule of Assumptions Used | The weighted average actuarial assumptions adopted in measuring our U.K. accrued benefit obligations and costs were as follows for the periods indicated: Year Ended January 2, 2022 January 3, 2021 December 29, 2019 Discount rate applied for: Accrued benefit obligation 1.8 % 1.3 % 1.9 % Net periodic pension cost 1.0 % 1.0 % 1.7 % Expected long-term rate of return on plan assets 4.1 % 4.1 % 3.9 % |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income and Other Comprehensive Income (Tables) | 12 Months Ended |
Jan. 02, 2022 | |
Equity [Abstract] | |
Schedule of components of accumulated other comprehensive income (loss) | A rollforward of the components of accumulated other comprehensive loss is as follows for the periods indicated: Year Ended (In thousands) January 2, 2022 January 3, 2021 December 29, 2019 Accumulated foreign exchange losses, beginning of period $ (93,684) $ (113,336) $ (129,930) Foreign currency translation (loss) gain (6,719) 17,566 14,544 Income tax benefit on foreign currency translation (loss) gain 6 17 25 Cumulative translation adjustment recognized upon deconsolidation of subsidiaries 3,544 2,254 2,368 Less: foreign exchange gain attributable to non-controlling interest 66 185 343 Accumulated foreign exchange losses, end of period (96,919) (93,684) (113,336) Accumulated pension and other post-retirement adjustments, beginning of period (18,379) (16,833) (22,989) Pension and other post-retirement adjustments 2,250 (3,163) 962 Income tax (expense) benefit on pension and other post-retirement adjustments (437) 851 (347) Amortization of actuarial net losses 1,336 1,002 1,798 Income tax expense on amortization of actuarial net losses (258) (236) (442) Pension settlement charges 15,654 — 5,651 Income tax expense on pension settlement charges (4,829) — (1,466) Accumulated pension and other post-retirement adjustments, end of period (4,663) (18,379) (16,833) Accumulated other comprehensive loss $ (101,582) $ (112,063) $ (130,169) Other comprehensive income, net of tax: $ 10,547 $ 18,291 $ 23,093 Less: other comprehensive income attributable to non-controlling interest 66 185 343 Other comprehensive income attributable to Masonite $ 10,481 $ 18,106 $ 22,750 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Jan. 02, 2022 | |
Supplemental Cash Flow Elements [Abstract] | |
Cash and non-cash transactions | Certain cash and non-cash transactions were as follows for the periods indicated: Year Ended (In thousands) January 2, 2022 January 3, 2021 December 29, 2019 Transactions involving cash: Interest paid $ 42,703 $ 45,380 $ 44,388 Interest received 250 1,110 2,064 Income taxes paid 40,506 24,336 14,809 Income tax refunds 875 805 1,713 Cash paid for operating lease liabilities 29,886 29,943 24,522 Cash paid for finance lease liabilities 1,470 1,393 528 Non-cash transactions from operating activities: Right-of-use assets acquired under operating leases 49,703 51,381 36,774 Non-cash transactions from investing and financing activities: Right-of-use assets acquired under finance leases — — 26,326 |
Schedule of cash and cash equivalents | The following reconciles total cash, cash equivalents and restricted cash as of the dates indicated: January 2, 2022 January 3, 2021 Cash and cash equivalents $ 381,395 $ 364,674 Restricted cash 10,110 10,560 Total cash, cash equivalents and restricted cash $ 391,505 $ 375,234 |
Variable Interest Entity (Table
Variable Interest Entity (Tables) | 12 Months Ended |
Jan. 02, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Consolidated results of the VIE | Our net cumulative investment in the VIE was comprised of the following as of the dates indicated: (In thousands) January 2, 2022 January 3, 2021 Current assets $ 9,057 $ 6,411 Property, plant and equipment, net 8,573 8,295 Long-term deferred income taxes 1,023 2,431 Other assets 4,202 3,973 Current liabilities (3,895) (3,139) Other long-term liabilities (139) (393) Non-controlling interest (3,803) (2,073) Net assets of the VIE consolidated by Masonite $ 15,018 $ 15,505 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Jan. 02, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments | The estimated fair values and carrying values of our long-term debt instruments were as follows for the periods indicated: January 2, 2022 January 3, 2021 (In millions) Fair Value Carrying Value Fair Value Carrying Value 3.50% senior unsecured notes due 2030 $ 373,238 $ 370,593 $ — $ — 5.375% senior unsecured notes due 2028 526,730 495,128 536 494 5.750% senior unsecured notes due 2026 — — 316 297 |
Business Overview and Signifi_4
Business Overview and Significant Accounting Policies (Business Overview and Significant Accounting Policies) (Details) | 12 Months Ended | ||
Jan. 02, 2022USD ($)facilityLease_OptionCountry | Jan. 03, 2021USD ($) | Dec. 29, 2019USD ($) | |
Property, Plant and Equipment [Line Items] | |||
Manufacturing locations | facility | 58 | ||
Number of countries | Country | 7 | ||
Amount drawn on letters of credit | $ 0 | $ 0 | |
Asset impairment | 69,900,000 | 51,515,000 | $ 13,767,000 |
Advertising costs | 14,200,000 | 10,800,000 | 14,200,000 |
Research and development costs | $ 18,400,000 | 17,000,000 | 7,200,000 |
Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Lease renewal options | Lease_Option | 1 | ||
Lease renewal term | 1 year | ||
Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Lease renewal options | Lease_Option | 4 | ||
Lease renewal term | 10 years | ||
Buildings | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful lives of property, plant and equipment | 20 years | ||
Buildings | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful lives of property, plant and equipment | 40 years | ||
Tooling | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful lives of property, plant and equipment | 10 years | ||
Tooling | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful lives of property, plant and equipment | 25 years | ||
Machinery and equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful lives of property, plant and equipment | 5 years | ||
Machinery and equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful lives of property, plant and equipment | 25 years | ||
Molds and Dies | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful lives of property, plant and equipment | 12 years | ||
Molds and Dies | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful lives of property, plant and equipment | 25 years | ||
Office Equipment, Fixtures and Fittings | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful lives of property, plant and equipment | 3 years | ||
Office Equipment, Fixtures and Fittings | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful lives of property, plant and equipment | 12 years | ||
Information Technology Systems | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful lives of property, plant and equipment | 5 years | ||
Information Technology Systems | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful lives of property, plant and equipment | 15 years | ||
North American Residential | |||
Property, Plant and Equipment [Line Items] | |||
Goodwill impairment | $ 0 | 0 | |
Asset impairment | 51,500,000 | 51,500,000 | $ 0 |
Standby Letters of Credit | |||
Property, Plant and Equipment [Line Items] | |||
Maximum borrowing capacity | $ 2,600,000 | $ 2,500,000 |
Business Overview and Signifi_5
Business Overview and Significant Accounting Policies (Product Warranty Rollforward) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Warranty Provision [Rollforward] | |||
Balance at beginning of period | $ 4,635 | $ 4,414 | $ 4,270 |
Additions charged to expense | 4,646 | 6,807 | 7,142 |
Deductions | (5,266) | (6,586) | (6,998) |
Balance at end of period | $ 4,015 | $ 4,635 | $ 4,414 |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Narrative) (Details) - USD ($) $ in Thousands | Jun. 14, 2021 | Dec. 04, 2020 | Aug. 31, 2020 | Dec. 13, 2019 | Aug. 29, 2019 | Mar. 21, 2019 | Jul. 04, 2021 | Apr. 04, 2021 | Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 |
Business Acquisition [Line Items] | |||||||||||
Cash consideration, net of cash acquired | $ 160 | $ 5,814 | $ 2,029 | ||||||||
Loss on disposal of subsidiaries | 8,590 | 2,091 | 14,260 | ||||||||
Translation adjustment functional to reporting currency, gain (loss), reclassified to earnings, net of tax | $ (3,544) | $ (2,254) | $ (2,368) | ||||||||
Czech Business | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Consideration for the sale of subsidiaries, net of cash disposed | $ 7,000 | ||||||||||
Loss on disposal of subsidiaries | 8,600 | ||||||||||
Gain (loss) on write-off of assets and other professional fees | 5,100 | ||||||||||
Translation adjustment functional to reporting currency, net of tax, period increase (decrease) | $ 3,500 | ||||||||||
India Entity | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Consideration for the sale of subsidiaries, net of cash disposed | $ 200 | ||||||||||
Loss on disposal of subsidiaries | (2,100) | ||||||||||
Translation adjustment functional to reporting currency, net of tax, period increase (decrease) | $ 2,300 | ||||||||||
Window Widgets | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Consideration for the sale of subsidiaries, net of cash disposed | $ 1,200 | ||||||||||
Loss on disposal of subsidiaries | (9,700) | ||||||||||
Write-off of assets sold | 8,300 | ||||||||||
Translation adjustment functional to reporting currency, gain (loss), reclassified to earnings, net of tax | $ 1,400 | ||||||||||
Performance Doorset Solutions | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Loss on disposal of subsidiaries | $ (4,600) | ||||||||||
Write-off of assets sold | 3,600 | ||||||||||
Translation adjustment functional to reporting currency, gain (loss), reclassified to earnings, net of tax | $ 1,000 | ||||||||||
Lowe's Door Fabrication Facility | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Cash payments for acquisition | $ 3,900 | ||||||||||
Lowes Door Manufacturing Facility | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Other payments to acquire businesses | $ 200 | ||||||||||
Development Entity | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Cash payments for acquisition | $ 1,900 | ||||||||||
Top Doors | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Cash consideration, net of cash acquired | $ 1,600 |
Accounts Receivable (Details)
Accounts Receivable (Details) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2022USD ($)Customer | Jan. 03, 2021USD ($)Customer | Dec. 29, 2019USD ($) | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of period | $ 2,809 | $ 1,752 | $ 2,109 |
Additions charged to expense | 242 | 1,443 | 78 |
Deductions | (964) | (386) | (435) |
Balance at end of period | $ 2,087 | $ 2,809 | $ 1,752 |
Accounts Receivable | Customer Concentration Risk | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Concentration risk, customers | Customer | 10 | 10 | |
Ten Largest Customers | Accounts Receivable | Customer Concentration Risk | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Concentration risk, percent (greater than for Home Depot) | 56.70% | 53.10% | |
The Home Depot, Inc. | Accounts Receivable | Customer Concentration Risk | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Concentration risk, percent (greater than for Home Depot) | 10.00% | 10.00% |
Inventories - Inventory on Hand
Inventories - Inventory on Hand (Details) - USD ($) $ in Thousands | Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | Dec. 30, 2018 |
Inventory Disclosure [Abstract] | ||||
Raw materials | $ 275,269 | $ 191,784 | ||
Finished goods | 78,324 | 75,483 | ||
Provision for obsolete or aged inventory | (6,117) | (6,305) | $ (7,136) | $ (7,764) |
Inventories, net | $ 347,476 | $ 260,962 |
Inventories Inventory Provision
Inventories Inventory Provision (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Inventory Valuation [Roll Forward] | |||
Balance at beginning of period | $ 6,305 | $ 7,136 | $ 7,764 |
Additions charged to expense | 3,402 | 5,150 | 4,159 |
Deductions | (3,590) | (5,981) | (4,787) |
Balance at end of period | $ 6,117 | $ 6,305 | $ 7,136 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Jan. 02, 2022 | Jan. 03, 2021 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 1,023,274 | $ 998,461 |
Accumulated depreciation | (396,477) | (373,335) |
Property, plant and equipment, net | 626,797 | 625,126 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 22,851 | 25,572 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 216,510 | 215,600 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 783,913 | $ 757,289 |
Property, Plant and Equipment_3
Property, Plant and Equipment (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation | $ 70,641 | $ 68,350 | $ 70,736 |
Leases - Lease Costs (Details)
Leases - Lease Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Lease, Cost [Abstract] | |||
Operating lease cost | $ 47,263 | $ 38,922 | |
Operating lease expense | $ 39,025 | ||
Finance lease amortization of right-of-use asset | 865 | 882 | 649 |
Finance lease interest expense | 1,443 | 1,458 | 1,063 |
Total lease expense | $ 49,571 | $ 41,262 | $ 40,737 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Jan. 02, 2022 | Jan. 03, 2021 |
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 176,445 | $ 146,806 |
Finance lease right-of-use asset | 23,931 | 24,796 |
Right-of-use Assets | 200,376 | 171,602 |
Current portion of operating lease liabilities | 25,551 | 22,667 |
Long-term operating lease liabilities | 165,670 | 136,235 |
Long-term finance lease liabilities | 27,043 | 26,926 |
Total lease liabilities | $ 218,264 | $ 185,828 |
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Property, plant and equipment, net | Property, plant and equipment, net |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accrued expenses | Accrued expenses |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other liabilities | Other liabilities |
Finance lease, accumulated amortization | $ 2,400 | $ 1,500 |
Operating lease weighted average remaining lease term | 11 years 9 months 18 days | 10 years 4 months 24 days |
Finance lease, weighted average remaining lease term | 27 years 7 months 6 days | 28 years 7 months 6 days |
Operating lease weighted average discount rate | 4.10% | 4.40% |
Finance lease weighted average discount rate percent | 5.40% | 5.40% |
Leases - Maturities of Operatin
Leases - Maturities of Operating and Finance Lease Liabilities (Details) $ in Thousands | Jan. 02, 2022USD ($) |
Operating Leases | |
2022 | $ 32,546 |
2023 | 28,344 |
2024 | 25,829 |
2025 | 22,622 |
2026 | 16,105 |
Thereafter | 125,751 |
Total minimum lease payments | 251,197 |
Less imputed interest | (59,976) |
Present value of future lease payments | 191,221 |
Finance Leases | |
2022 | 1,365 |
2023 | 1,287 |
2024 | 1,445 |
2025 | 1,488 |
2026 | 1,663 |
Thereafter | 49,831 |
Total undiscounted lease payments | 57,079 |
Less imputed interest | (30,036) |
Total | $ 27,043 |
Leases - Narrative (Details)
Leases - Narrative (Details) | Jan. 02, 2022USD ($) |
Leases [Abstract] | |
Undiscounted commitment for operating leases | $ 0 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 02, 2022 | Jan. 03, 2021 | |
Goodwill [Roll Forward] | ||
Goodwill, beginning | $ 138,692 | |
Goodwill, ending | 77,102 | $ 138,692 |
North American Residential | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning | 9,730 | 6,590 |
Goodwill from acquisitions | 3,132 | |
Measurement period adjustment | 160 | |
Goodwill related to divestiture | 0 | |
Goodwill impairment | 0 | 0 |
Foreign exchange fluctuations | 3 | 8 |
Goodwill, ending | 9,893 | 9,730 |
Europe | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning | 69,439 | 66,602 |
Goodwill from acquisitions | 0 | |
Measurement period adjustment | 0 | |
Goodwill related to divestiture | (1,395) | |
Goodwill impairment | 0 | 0 |
Foreign exchange fluctuations | (835) | 2,837 |
Goodwill, ending | 67,209 | 69,439 |
Architectural | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning | 59,523 | 111,000 |
Goodwill from acquisitions | 0 | |
Measurement period adjustment | 0 | |
Goodwill related to divestiture | 0 | |
Goodwill impairment | (59,526) | (51,515) |
Foreign exchange fluctuations | 3 | 38 |
Goodwill, ending | 0 | 59,523 |
Operating Segments | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning | 138,692 | 184,192 |
Goodwill from acquisitions | 3,132 | |
Measurement period adjustment | 160 | |
Goodwill related to divestiture | (1,395) | |
Goodwill impairment | (59,526) | (51,515) |
Foreign exchange fluctuations | (829) | 2,883 |
Goodwill, ending | $ 77,102 | $ 138,692 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Goodwill [Line Items] | |||
Goodwill | $ 77,102 | $ 138,692 | |
Amortization of intangible assets | 20,200 | 22,200 | $ 28,200 |
Architectural | |||
Goodwill [Line Items] | |||
Goodwill | 0 | 59,523 | $ 111,000 |
Goodwill impairment | $ 59,526 | $ 51,515 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets (Cost and Accumulated Amortized Values) (Details) - USD ($) $ in Thousands | Jan. 02, 2022 | Jan. 03, 2021 |
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Cost | $ 281,875 | $ 282,841 |
Accumulated Amortization | (208,426) | (190,767) |
Net Book Value | 73,449 | 92,074 |
Total intangible assets, gross | 358,913 | 360,159 |
Intangible Assets, Net (Excluding Goodwill) | 150,487 | 169,392 |
Customer relationships | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Cost | 176,779 | 178,078 |
Accumulated Amortization | (132,840) | (119,689) |
Net Book Value | 43,939 | 58,389 |
Patents | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Cost | 34,438 | 33,573 |
Accumulated Amortization | (28,148) | (26,211) |
Net Book Value | 6,290 | 7,362 |
Software | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Cost | 36,354 | 35,620 |
Accumulated Amortization | (33,281) | (33,041) |
Net Book Value | 3,073 | 2,579 |
Trademarks and tradenames | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Cost | 34,210 | 34,604 |
Accumulated Amortization | (14,063) | (10,862) |
Net Book Value | 20,147 | 23,742 |
Other | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Cost | 94 | 966 |
Accumulated Amortization | (94) | (964) |
Net Book Value | 0 | 2 |
Trademarks and Trade Names | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets, gross | $ 77,038 | $ 77,318 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets (Estimated Future Amortization of Intangible Assets) (Details) $ in Thousands | Jan. 02, 2022USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2022 | $ 16,594 |
2023 | 15,099 |
2024 | 13,521 |
2025 | 11,318 |
2026 | $ 7,957 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | Jan. 02, 2022 | Jan. 03, 2021 |
Accrued Expenses [Abstract] | ||
Accrued payroll | $ 66,048 | $ 86,517 |
Accrued rebates | 51,200 | 49,531 |
Current portion of operating lease liabilities | 25,551 | 22,667 |
Accrued interest | 17,125 | 16,435 |
Accrued legal settlement | 0 | 40,000 |
Other accruals | 77,376 | 62,566 |
Total accrued expenses | $ 237,300 | $ 277,716 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Total accrued expenses | Total accrued expenses |
Long-Term Debt (Details)
Long-Term Debt (Details) - USD ($) $ in Thousands | Jan. 02, 2022 | Jan. 03, 2021 |
Debt Instrument [Line Items] | ||
Other long-term debt | $ 0 | $ 936 |
Total long-term debt | 865,721 | 792,242 |
Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt issuance costs | (9,279) | (8,694) |
Senior Notes | Senior Notes Due 2030 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 375,000 | 0 |
Senior Notes | Senior Notes Due 2028 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 500,000 | 500,000 |
Senior Notes | Senior Notes Due 2026 | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 0 | $ 300,000 |
Long-Term Debt (Narrative) (Det
Long-Term Debt (Narrative) (Details) - USD ($) | Jul. 26, 2021 | Aug. 10, 2019 | Jul. 25, 2019 | Aug. 27, 2018 | Apr. 09, 2015 | Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | Jan. 31, 2019 |
Debt Instrument [Line Items] | |||||||||
Proceeds from Issuance of Long-term Debt | $ 375,000,000 | $ 0 | $ 500,000,000 | ||||||
Loss on extinguishment of debt | $ 13,583,000 | $ 0 | 14,523,000 | ||||||
Senior Notes Due 2028 | Debt Instrument, Redemption, Period One | |||||||||
Debt Instrument [Line Items] | |||||||||
Redemption price, percentage | 101.00% | ||||||||
Senior Notes Due 2028 | Debt Instrument, Redemption, Period Two | |||||||||
Debt Instrument [Line Items] | |||||||||
Redemption price, percentage | 100.00% | ||||||||
ABL Facility 2020 | Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing capacity | $ 250,000,000 | ||||||||
Maximum pro forma secured leverage ratio | 4.5 | ||||||||
Remaining borrowing capacity | $ 219,500,000 | ||||||||
Line of credit, amount outstanding | 0 | ||||||||
ABL Facility 2020 | Revolving Credit Facility | Minimum | |||||||||
Debt Instrument [Line Items] | |||||||||
Unutilized commitment fee percentage | 0.25% | ||||||||
ABL Facility 2020 | Revolving Credit Facility | Minimum | Base Rate | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread on variable rate | 0.25% | ||||||||
ABL Facility 2020 | Revolving Credit Facility | Minimum | Eurodollar Rate | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread on variable rate | 1.25% | ||||||||
ABL Facility 2020 | Revolving Credit Facility | Maximum | Base Rate | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread on variable rate | 0.50% | ||||||||
ABL Facility 2020 | Revolving Credit Facility | Maximum | Eurodollar Rate | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread on variable rate | 1.50% | ||||||||
Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest expense | $ 43,900,000 | $ 45,500,000 | $ 46,100,000 | ||||||
Senior Notes | Senior Notes Due 2030 | |||||||||
Debt Instrument [Line Items] | |||||||||
Aggregate principal of debt issued | $ 375,000,000 | ||||||||
Interest rate stated percentage | 3.50% | ||||||||
Proceeds from Issuance of Long-term Debt | $ 370,300,000 | ||||||||
Debt issuance cost | 4,700,000 | ||||||||
Senior Notes | Senior Notes Due 2026 | |||||||||
Debt Instrument [Line Items] | |||||||||
Aggregate principal of debt issued | $ 300,000,000 | ||||||||
Interest rate stated percentage | 5.75% | ||||||||
Proceeds from Issuance of Long-term Debt | 295,700,000 | ||||||||
Debt issuance cost | $ 4,300,000 | ||||||||
Extinguishment of debt, amount | 300,000,000 | ||||||||
Loss on extinguishment of debt | 13,600,000 | ||||||||
Extinguishment of debt, premium paid | 10,800,000 | ||||||||
Write off of debt issuance costs | $ 2,800,000 | ||||||||
Senior Notes | Senior Notes Due 2028 | |||||||||
Debt Instrument [Line Items] | |||||||||
Aggregate principal of debt issued | $ 500,000,000 | ||||||||
Interest rate stated percentage | 5.375% | ||||||||
Proceeds from Issuance of Long-term Debt | 493,300,000 | ||||||||
Debt issuance cost | $ 6,700,000 | ||||||||
Senior Notes | Senior Notes Due 2023 | |||||||||
Debt Instrument [Line Items] | |||||||||
Extinguishment of debt, amount | $ 500,000,000 | ||||||||
Loss on extinguishment of debt | 14,500,000 | ||||||||
Extinguishment of debt, premium paid | 14,100,000 | ||||||||
Write off of unamortized debt premium | 3,100,000 | ||||||||
Write off of debt issuance costs | $ 3,500,000 |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Legal reserve | $ 0 | $ 40,550 | $ 0 |
Share Based Compensation Plan_2
Share Based Compensation Plans Narrative (Details) - USD ($) $ in Thousands | Mar. 10, 2021 | Jul. 12, 2012 | Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation | $ 15,959 | $ 19,423 | $ 10,023 | ||
Share based compensation unrecognized | $ 16,800 | ||||
Weighted average remaining requisite service period | 1 year 3 months 18 days | ||||
Deferred compensation liability | $ 8,900 | 6,900 | |||
Deferred compensation asset | $ 9,000 | 6,700 | |||
2012 Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Plan term | 10 years | ||||
2012 Plan | Common Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock available for future issuance (in shares) | 1,543,781 | ||||
2021 Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock incentive plan, period in force | 10 years | ||||
2021 Plan | Common Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Equity awards not to exceed (in shares) | 880,000 | ||||
Stock Appreciation Rights (SARs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Plan term | 10 years | ||||
Award vesting period | 4 years | ||||
Fair value of shares vested | $ 800 | $ 1,000 | $ 1,100 | ||
Award granted, fair value | $ 800 | ||||
Average requisite service period | 2 years | ||||
Restricted Stock Units (RSUs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 3 years | ||||
Fair value of shares vested | $ 13,800 | ||||
Award granted, fair value | $ 22,400 | ||||
Average requisite service period | 2 years 2 months 12 days | ||||
Units vested | 210,904 | ||||
Service Requirements Only | Restricted Stock Units (RSUs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting requirements (percent) | 70.00% | ||||
Service and Performance Requirements | Restricted Stock Units (RSUs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting requirements (percent) | 30.00% |
Share Based Compensation Plan_3
Share Based Compensation Plans (SARs) (Details) - Stock Appreciation Rights (SARs) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | Dec. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Outstanding, beginning of period, shares | 207,094 | 404,447 | 514,313 | |
Granted, shares | 28,707 | 32,435 | 111,230 | |
Exercised, shares | (69,223) | (209,793) | (212,767) | |
Forfeited, shares | (7,853) | (19,995) | (8,329) | |
Outstanding, end of period, shares | 158,725 | 207,094 | 404,447 | 514,313 |
Exercisable, end of period, shares | 81,474 | 94,883 | 230,440 | |
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 | $ 7,409 | $ 7,615 | $ 7,254 | |
Exercised, aggregate intrinsic value | 4,305 | 7,033 | 9,379 | |
Outstanding, end period, aggregate intrinsic value | 7,324 | 7,409 | 7,615 | $ 7,254 |
Exercisable, end of period, aggregate intrinsic value | $ 4,451 | $ 3,736 | $ 5,675 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||||
Outstanding, beginning of period, weighted average exercise price | $ 62.56 | $ 53.62 | $ 39.01 | |
Granted, weighted average exercise price | 107.68 | 83.39 | 57.29 | |
Exercised, weighted average exercise price | 57.79 | 48.59 | 19.68 | |
Forfeited, weighted average exercise price | 82.76 | 62.10 | 67.24 | |
Outstanding, end of period, weighted average exercise price | 71.81 | 62.56 | 53.62 | $ 39.01 |
Exercisable, end of period, weighted average exercise price | $ 63.32 | $ 58.97 | $ 47.92 | |
Outstanding, beginning of period, weighted average remaining contractual term | 7 years 6 months | 7 years 6 months | 4 years 8 months 12 days | 4 years 7 months 6 days |
Outstanding, end of period, weighted average remaining contractual term | 7 years 6 months | 7 years 6 months | 4 years 8 months 12 days | 4 years 7 months 6 days |
Exercisable, end of period, weighted average remaining contractual term | 6 years 10 months 24 days | 6 years 4 months 24 days | 2 years 6 months |
Share Based Compensation Plan_4
Share Based Compensation Plans (Weighted Average Grant Date Assumptions) (Details) - Stock Appreciation Rights (SARs) - $ / shares | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
SAR value (model conclusion) | $ 28.08 | $ 20.56 | $ 12.26 |
Risk-free rate | 0.80% | 1.20% | 2.20% |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Expected volatility | 25.20% | 22.60% | 21.90% |
Expected term (years) | 6 years | 6 years | 6 years |
Share Based Compensation Plan_5
Share Based Compensation Plans (RSUs) (Details) - Restricted Stock Units (RSUs) - $ / shares | 12 Months Ended | |||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | ||
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) | 488,057 | 523,207 | 429,027 | |
Granted (shares) | 202,268 | 218,943 | 303,740 | |
Performance adjustment (shares) | 14,474 | [1] | (59,936) | (21,953) |
Delivered (shares) | (176,915) | (115,340) | (120,982) | |
Withheld to cover (shares) | (33,989) | [2] | (16,234) | (20,024) |
Forfeited (shares) | (51,789) | (62,583) | (46,601) | |
Outstanding, end of period (shares) | 442,106 | 488,057 | 523,207 | |
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 (dollars per share) | $ 68.15 | $ 59.58 | $ 66.03 | |
Granted (dollars per share) | 110.50 | 79.71 | 56.31 | |
Performance adjustment (dollars per share) | 63.05 | 67.50 | 57.51 | |
Delivered (dollars per share) | 66.40 | 60.30 | 62.03 | |
Forfeited (dollars per share) | 80.81 | 53.80 | 63.62 | |
Outstanding, end of period (dollars per share) | $ 87.24 | $ 68.15 | $ 59.58 | |
[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 (Restructur
Restructuring Costs (Restructuring Costs by Plan) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring cost, net | $ 5,567 | $ 8,236 | $ 9,776 |
Cumulative amount incurred to date | 25,203 | ||
North American Residential | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring cost, net | (149) | 4,327 | 6,929 |
Cumulative amount incurred to date | 11,382 | ||
Europe | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring cost, net | 0 | (37) | 1,322 |
Cumulative amount incurred to date | 2,634 | ||
Architectural | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring cost, net | 5,165 | 2,898 | 506 |
Cumulative amount incurred to date | 8,569 | ||
Corporate and Other | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring cost, net | 551 | 1,048 | 1,019 |
Cumulative amount incurred to date | 2,618 | ||
2021 Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring cost, net | 1,666 | ||
Cumulative amount incurred to date | 1,666 | ||
2021 Plan | North American Residential | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring cost, net | 0 | ||
Cumulative amount incurred to date | 0 | ||
2021 Plan | Europe | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring cost, net | 0 | ||
Cumulative amount incurred to date | 0 | ||
2021 Plan | Architectural | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring cost, net | 1,666 | ||
Cumulative amount incurred to date | 1,666 | ||
2021 Plan | Corporate and Other | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring cost, net | 0 | ||
Cumulative amount incurred to date | 0 | ||
2020 Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring cost, net | 3,545 | 1,762 | |
Cumulative amount incurred to date | 5,307 | ||
2020 Plan | North American Residential | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring cost, net | 23 | 29 | |
Cumulative amount incurred to date | 52 | ||
2020 Plan | Europe | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring cost, net | 0 | 0 | |
Cumulative amount incurred to date | 0 | ||
2020 Plan | Architectural | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring cost, net | 3,499 | 1,733 | |
Cumulative amount incurred to date | 5,232 | ||
2020 Plan | Corporate and Other | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring cost, net | 23 | 0 | |
Cumulative amount incurred to date | 23 | ||
2019 Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring cost, net | 356 | 6,039 | 7,380 |
Cumulative amount incurred to date | 13,775 | ||
2019 Plan | North American Residential | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring cost, net | (172) | 3,863 | 5,459 |
Cumulative amount incurred to date | 9,150 | ||
2019 Plan | Europe | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring cost, net | 0 | (37) | 396 |
Cumulative amount incurred to date | 359 | ||
2019 Plan | Architectural | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring cost, net | 0 | 1,165 | 506 |
Cumulative amount incurred to date | 1,671 | ||
2019 Plan | Corporate and Other | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring cost, net | 528 | 1,048 | 1,019 |
Cumulative amount incurred to date | 2,595 | ||
2018 Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring cost, net | 435 | 2,396 | |
Cumulative amount incurred to date | 4,455 | ||
2018 Plan | North American Residential | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring cost, net | 435 | 1,470 | |
Cumulative amount incurred to date | 2,180 | ||
2018 Plan | Europe | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring cost, net | 0 | 926 | |
Cumulative amount incurred to date | 2,275 | ||
2018 Plan | Architectural | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring cost, net | 0 | 0 | |
Cumulative amount incurred to date | 0 | ||
2018 Plan | Corporate and Other | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring cost, net | $ 0 | $ 0 | |
Cumulative amount incurred to date | $ 0 |
Restructuring Costs (Details)
Restructuring Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Restructuring Reserve [Roll Forward] | |||
Restructuring reserve, beginning balance | $ 1,783 | $ 1,535 | $ 654 |
Restructuring costs | 5,567 | 8,236 | 9,776 |
Payments for Restructuring | (7,301) | (7,988) | (8,895) |
Restructuring reserve, ending balance | 49 | 1,783 | 1,535 |
Severance | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring costs | 952 | 3,421 | 7,095 |
Closure Costs | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring costs | 4,615 | 4,815 | 2,681 |
2021 Plan | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring reserve, beginning balance | 0 | ||
Restructuring costs | 1,666 | ||
Payments for Restructuring | (1,641) | ||
Restructuring reserve, ending balance | 25 | 0 | |
2021 Plan | Severance | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring costs | 513 | ||
2021 Plan | Closure Costs | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring costs | 1,153 | ||
2020 Plan | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring reserve, beginning balance | 1,492 | 0 | |
Restructuring costs | 3,545 | 1,762 | |
Payments for Restructuring | (5,015) | (270) | |
Restructuring reserve, ending balance | 22 | 1,492 | 0 |
2020 Plan | Severance | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring costs | 264 | 1,506 | |
2020 Plan | Closure Costs | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring costs | 3,281 | 256 | |
2019 Plan | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring reserve, beginning balance | 291 | 1,535 | 0 |
Restructuring costs | 356 | 6,039 | 7,380 |
Payments for Restructuring | (645) | (7,283) | (5,845) |
Restructuring reserve, ending balance | 2 | 291 | 1,535 |
2019 Plan | Severance | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring costs | 175 | 1,752 | 5,100 |
2019 Plan | Closure Costs | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring costs | 181 | 4,287 | 2,280 |
2018 Plan | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring reserve, beginning balance | $ 0 | 0 | 596 |
Restructuring costs | 435 | 2,396 | |
Payments for Restructuring | (435) | (2,992) | |
Restructuring reserve, ending balance | 0 | 0 | |
2018 Plan | Severance | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring costs | 163 | 1,995 | |
2018 Plan | Closure Costs | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring costs | 272 | 401 | |
Other | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring reserve, beginning balance | $ 0 | 58 | |
Payments for Restructuring | (58) | ||
Restructuring reserve, ending balance | 0 | ||
Other | Severance | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring costs | 0 | ||
Other | Closure Costs | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring costs | $ 0 |
Asset Impairment (Details)
Asset Impairment (Details) - USD ($) | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Asset impairment | $ 69,900,000 | $ 51,515,000 | $ 13,767,000 |
Goodwill | 77,102,000 | 138,692,000 | |
Architectural | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Asset impairment | 10,400,000 | ||
Goodwill impairment | 59,526,000 | 51,515,000 | |
Goodwill | 0 | 59,523,000 | 111,000,000 |
Architectural and Corporate & Other | Reported Value Measurement | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Book value of asset group | 16,700,000 | ||
Architectural and Corporate & Other | Fair Value, Inputs, Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of asset group based on estimated discounted future cash flows, including salvage values or market values | 6,300,000 | ||
North American Residential | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Asset impairment | 51,500,000 | 51,500,000 | 0 |
Goodwill impairment | 0 | 0 | |
Goodwill | 9,893,000 | 9,730,000 | $ 6,590,000 |
North American Residential | Reported Value Measurement | Asset Group Three | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Book value of asset group | 111,000,000 | 23,200,000 | |
North American Residential | Fair Value, Inputs, Level 3 | Asset Group Three | |||
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 | $ 59,500,000 | $ 9,400,000 |
Income Taxes (Income From Conti
Income Taxes (Income From Continuing Operations Before Tax) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Income Tax Disclosure [Abstract] | |||
Canada | $ 44,935 | $ 54,355 | $ 21,345 |
Foreign | 99,031 | 47,945 | 45,003 |
Total income before income tax expense (benefit) | $ (143,966) | $ (102,300) | $ (66,348) |
Income Taxes (Income Tax Expens
Income Taxes (Income Tax Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Current income tax expense (benefit): | |||
Canada | $ 9,392 | $ 8,283 | $ 7,600 |
Foreign | 30,499 | 30,413 | 6,417 |
Total current income tax expense | 39,891 | 38,696 | 14,017 |
Deferred income tax expense (benefit): | |||
Canada | 3,626 | (235) | 1,497 |
Foreign | 1,255 | (9,850) | 1,795 |
Total deferred income tax expense (benefit) | 4,881 | (10,085) | 3,292 |
Income tax expense | $ 44,772 | $ 28,611 | $ 17,309 |
Income Taxes (Income Tax Rate R
Income Taxes (Income Tax Rate Reconciliation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Canadian federal statutory rate, (percent) | 26.50% | 26.50% | 26.70% |
Income tax expense computed at statutory income tax rate | $ 38,137 | $ 27,130 | $ 17,702 |
Foreign rate differential | (12,370) | (4,900) | (4,503) |
Permanent differences | 3,843 | (1,286) | 1,195 |
Disposal of subsidiaries | 1,651 | 493 | 2,751 |
Income attributable to a permanent establishment | 2,608 | 2,253 | 148 |
Change in valuation allowance | 1,569 | (9,271) | (1,463) |
Tax exempt income | 0 | 0 | (2,451) |
Income tax credits | (5,591) | (1,831) | (1,869) |
Change in tax rate | 2,706 | 883 | 267 |
Goodwill impairment | 11,296 | 7,965 | 0 |
Limitation on executive compensation | 1,904 | 2,209 | 773 |
Withholding and other taxes | 1,761 | 2,435 | 2,006 |
Nondeductible interest | 0 | 1,714 | 4,814 |
Other | (2,742) | 817 | (2,061) |
Income tax expense (benefit) | $ 44,772 | $ 28,611 | $ 17,309 |
Income Taxes (Deferred Income T
Income Taxes (Deferred Income Taxes) (Details) - USD ($) $ in Thousands | Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | Dec. 30, 2018 |
Deferred tax assets: | ||||
Non-capital loss carryforwards | $ 11,142 | $ 13,860 | ||
Capital loss carryforwards | 6,740 | 9,375 | ||
Deferred interest expense | 12,518 | 6,845 | ||
Pension and post-retirement liability | 177 | 679 | ||
Accruals and reserves currently not deductible for tax purposes | 18,208 | 31,378 | ||
Share based compensation | 4,456 | 4,630 | ||
Income tax credits | 5,466 | 5,083 | ||
Lease right-of-use assets | 57,735 | 48,467 | ||
Other | 1,142 | 668 | ||
Total deferred tax assets | 117,584 | 120,985 | ||
Valuation allowance | (10,286) | (5,970) | $ (15,569) | $ (16,373) |
Total deferred tax assets, net of valuation allowance | 107,298 | 115,015 | ||
Deferred tax liabilities: | ||||
Plant and equipment | (77,807) | (79,208) | ||
Intangibles | (23,147) | (26,866) | ||
Basis difference in subsidiaries | (7,488) | (7,354) | ||
Unrealized foreign exchange gain | (287) | (1,534) | ||
Lease liabilities | (52,955) | (44,673) | ||
Other | (2,786) | (3,122) | ||
Total deferred tax liabilities | (164,470) | (162,757) | ||
Net deferred tax liability | $ 57,172 | $ 47,742 |
Income Taxes (Valuation Allowan
Income Taxes (Valuation Allowance Rollforward) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | $ 5,970 | $ 15,569 | $ 16,373 |
Additions charged to expense and other | 4,473 | 851 | 2,863 |
Deductions | (157) | (10,450) | (3,667) |
Balance at end of period | $ 10,286 | $ 5,970 | $ 15,569 |
Income Taxes (Loss Carryforward
Income Taxes (Loss Carryforwards) (Details) $ in Thousands | Jan. 02, 2022USD ($) |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | $ 33,721 |
Operating loss carryforwards, valuation allowance | 1,300 |
Canada | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 21,520 |
Other Foreign | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 12,201 |
2022-2027 | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 3,213 |
2022-2027 | Canada | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 0 |
2022-2027 | Other Foreign | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 3,213 |
2028-2042 | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 21,520 |
2028-2042 | Canada | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 21,520 |
2028-2042 | Other Foreign | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 0 |
Indefinitely | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 8,988 |
Indefinitely | Canada | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 0 |
Indefinitely | Other Foreign | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | $ 8,988 |
Income Taxes (Unrecognized Tax
Income Taxes (Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized tax benefits | $ 7,592 | $ 8,108 | $ 8,156 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefit at beginning of period | 8,108 | 8,156 | 9,084 |
Gross increases in tax positions in current period | 103 | 62 | 46 |
Gross decreases in tax positions in prior period | (108) | (110) | (973) |
Gross increases in tax positions in prior period | 0 | 1 | 0 |
Lapse of statute of limitations | (511) | (1) | (1) |
Unrecognized tax benefit at end of period | 7,592 | 8,108 | 8,156 |
Unrecognized tax benefits, interest expense | 400 | 600 | 300 |
Unrecognized tax benefits, penalties accrued | 300 | 300 | 400 |
Unrecognized tax benefits, interest accrued | $ 2,800 | $ 3,100 | $ 2,900 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Net income attributable to Masonite | $ 94,501 | $ 69,037 | $ 44,602 |
Shares used in computing basic earnings per share (in shares) | 24,176,846 | 24,569,727 | 25,130,027 |
Effect of dilutive securities: | |||
Incremental shares issuable under share compensation plans (in shares) | 385,687 | 373,451 | 322,695 |
Shares used in computing diluted earnings per share) | 24,562,533 | 24,943,178 | 25,452,722 |
Basic earnings per common share attributable to Masonite (in dollars per share) | $ 3.91 | $ 2.81 | $ 1.77 |
Diluted earnings per common share attributable to Masonite (in dollars per share) | $ 3.85 | $ 2.77 | $ 1.75 |
Anti-dilutive instruments excluded from diluted earnings per common share | |||
Effect of dilutive securities: | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 28,707 | 215,563 | 295,879 |
Segment Information (Schedule o
Segment Information (Schedule of Segment Reporting Information, by Segment) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | $ 2,596,920 | $ 2,257,075 | $ 2,176,683 |
Adjusted EBITDA | 412,606 | 363,712 | 283,384 |
Depreciation and Amortization | 91,982 | 91,773 | 99,849 |
Interest expense, net | 46,123 | 46,807 | 46,489 |
Income tax expense | 44,772 | 28,611 | 17,309 |
Operating Segments | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | 2,620,688 | 2,279,153 | 2,196,572 |
Intersegment Eliminations | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | (23,768) | (22,078) | (19,889) |
North American Residential | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | 1,952,898 | 1,638,119 | 1,465,808 |
Adjusted EBITDA | 374,452 | 347,822 | 232,512 |
Depreciation and Amortization | 39,504 | 37,705 | 37,689 |
Interest expense, net | 0 | 0 | 0 |
Income tax expense | 0 | 0 | 0 |
North American Residential | Operating Segments | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | 1,955,424 | 1,640,323 | 1,469,194 |
North American Residential | Intersegment Eliminations | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | (2,526) | (2,204) | (3,386) |
Europe | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | 334,532 | 258,113 | 321,631 |
Adjusted EBITDA | 60,624 | 40,474 | 46,219 |
Depreciation and Amortization | 23,825 | 23,732 | 26,257 |
Interest expense, net | 0 | 0 | 0 |
Income tax expense | 0 | 0 | 0 |
Europe | Operating Segments | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | 342,172 | 260,834 | 323,137 |
Europe | Intersegment Eliminations | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | (7,640) | (2,721) | (1,506) |
Architectural | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | 289,476 | 340,896 | 365,303 |
Adjusted EBITDA | (2,704) | 34,201 | 40,470 |
Depreciation and Amortization | 14,620 | 17,735 | 19,705 |
Interest expense, net | 0 | 0 | 0 |
Income tax expense | 0 | 0 | 0 |
Architectural | Operating Segments | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | 303,078 | 358,049 | 380,300 |
Architectural | Intersegment Eliminations | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | (13,602) | (17,153) | (14,997) |
Corporate and Other | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | 20,014 | 19,947 | 23,941 |
Adjusted EBITDA | (19,766) | (58,785) | (35,817) |
Depreciation and Amortization | 14,033 | 12,601 | 16,198 |
Interest expense, net | 46,123 | 46,807 | 46,489 |
Income tax expense | 44,772 | 28,611 | 17,309 |
Corporate and Other | Operating Segments | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | 20,014 | 19,947 | 23,941 |
Corporate and Other | Intersegment Eliminations | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | $ 0 | $ 0 | $ 0 |
Segment Information (Reconcilia
Segment Information (Reconciliation of Consolidated Adjusted EBITDA to Net Income (Loss)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Segment Reporting [Abstract] | |||
Net income attributable to Masonite | $ 94,501 | $ 69,037 | $ 44,602 |
Depreciation | 70,641 | 68,350 | 70,736 |
Amortization | 21,341 | 23,423 | 29,113 |
Share based compensation expense | 15,959 | 19,423 | 10,023 |
Loss on disposal of property, plant and equipment | 1,316 | 6,234 | 6,396 |
Restructuring costs | 5,567 | 8,236 | 9,776 |
Asset impairment | 69,900 | 51,515 | 13,767 |
Loss on disposal of subsidiaries | 8,590 | 2,091 | 14,260 |
Interest expense, net | 46,123 | 46,807 | 46,489 |
Loss on extinguishment of debt | 13,583 | 0 | 14,523 |
Other (income) expense, net | (15,620) | 5,217 | (1,953) |
Income tax expense (benefit) | 44,772 | 28,611 | 17,309 |
Legal reserve | 0 | 40,550 | 0 |
Net income attributable to non-controlling interest | 4,693 | 4,652 | 4,437 |
Adjusted EBITDA | $ 412,606 | $ 363,712 | $ 283,384 |
Segment Information (Net Sales)
Segment Information (Net Sales) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Segment Reporting Information [Line Items] | |||
Net sales | $ 2,596,920 | $ 2,257,075 | $ 2,176,683 |
The Home Depot, Inc. | |||
Segment Reporting Information [Line Items] | |||
Net sales | 491,500 | 411,100 | 372,400 |
UNITED STATES | |||
Segment Reporting Information [Line Items] | |||
Net sales | 1,776,180 | 1,595,398 | 1,483,697 |
Canada | |||
Segment Reporting Information [Line Items] | |||
Net sales | 364,179 | 319,937 | 304,497 |
UNITED KINGDOM | |||
Segment Reporting Information [Line Items] | |||
Net sales | 300,008 | 218,382 | 281,888 |
Other Countries | |||
Segment Reporting Information [Line Items] | |||
Net sales | 156,553 | 123,358 | 106,601 |
Interior Products | |||
Segment Reporting Information [Line Items] | |||
Net sales | 1,654,379 | 1,479,196 | 1,427,459 |
Exterior Products | |||
Segment Reporting Information [Line Items] | |||
Net sales | 813,605 | 647,241 | 628,301 |
Components | |||
Segment Reporting Information [Line Items] | |||
Net sales | $ 128,936 | $ 130,638 | $ 120,923 |
Segment Information (Property,
Segment Information (Property, Plant and Equipment) (Details) - USD ($) $ in Thousands | Jan. 02, 2022 | Jan. 03, 2021 |
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | $ 626,797 | $ 625,126 |
UNITED STATES | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | 413,289 | 403,126 |
Canada | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | 50,187 | 61,201 |
Other Countries | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | $ 163,321 | $ 160,799 |
Employee Future Benefits (Infor
Employee Future Benefits (Information about the Plans) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Jan. 02, 2022 | Jan. 03, 2021 | Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||||
Settlement loss | $ (5,700) | $ 0 | $ 127 | $ 0 | |
Defined contribution plan, contributions | 15,600 | 13,700 | 12,400 | ||
UNITED KINGDOM | Pension Plan | |||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||||
Interest cost | 366 | 536 | 685 | ||
Expected return on assets | (1,292) | (1,021) | (948) | ||
Amortization of actuarial net losses | 289 | 340 | 246 | ||
Net pension expense | (637) | (18) | (17) | ||
UNITED STATES | Pension Plan | |||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||||
Service cost | 331 | 309 | 548 | ||
Interest cost | 1,516 | 2,183 | 3,423 | ||
Expected return on assets | (2,953) | (5,328) | (5,723) | ||
Amortization of actuarial net losses | 1,047 | 662 | 1,521 | ||
Settlement loss | $ 23,300 | 23,343 | 0 | 5,651 | |
Net pension expense | $ 23,284 | $ (2,174) | $ 5,420 |
Employee Future Benefits (Plan
Employee Future Benefits (Plan Activity) (Details) - Pension Plan - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
UNITED KINGDOM | |||
Pension assets: | |||
Fair value of plan assets, beginning of year | $ 31,222 | $ 26,748 | |
Company contributions | 1,376 | 769 | |
Actual return on plan assets | 2,159 | 4,132 | |
Plan settlements | 0 | (838) | |
Benefits paid | (919) | (915) | |
Translation adjustment | 449 | (1,326) | |
Fair value of plan assets, end of year | 33,389 | 31,222 | $ 26,748 |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Accrued benefit obligation, beginning of year | 35,394 | 32,601 | |
Interest cost | 366 | 536 | 685 |
Plan settlements | 0 | (838) | |
Actuarial loss (gain) | (1,431) | 2,553 | |
Benefits paid | (919) | (915) | |
Accrued benefit obligation, end of year | 33,002 | 35,394 | $ 32,601 |
Translation adjustment | (408) | 1,457 | |
Net accrued benefit obligation, end of year | $ 387 | $ (4,172) | |
Accrued benefit obligation, discount rate (percent) | 1.83% | 1.27% | 1.90% |
UNITED STATES | |||
Pension assets: | |||
Fair value of plan assets, beginning of year | $ 86,464 | $ 79,422 | |
Company contributions | 5,550 | 1,250 | |
Actual return on plan assets | (2,347) | 10,113 | |
Plan settlements | (84,573) | 0 | |
Benefits paid | (3,711) | (3,965) | |
Administration expenses paid | (1,383) | (356) | |
Fair value of plan assets, end of year | 0 | 86,464 | $ 79,422 |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Accrued benefit obligation, beginning of year | 85,330 | 78,557 | |
Current service cost | 331 | 309 | 548 |
Interest cost | 1,516 | 2,183 | 3,423 |
Plan settlements | (84,573) | 0 | |
Actuarial loss (gain) | (2,490) | (8,602) | |
Benefits paid | (3,711) | (3,965) | |
Administrative expenses paid | (1,383) | (356) | |
Accrued benefit obligation, end of year | 0 | 85,330 | $ 78,557 |
Net accrued benefit obligation, end of year | $ 0 | $ 1,134 | |
Accrued benefit obligation, discount rate (percent) | 2.40% | 2.40% | 3.30% |
Employee Future Benefits - AOCL
Employee Future Benefits - AOCL (Details) - USD ($) $ in Thousands | Jan. 02, 2022 | Jan. 03, 2021 |
Defined Benefit Plan Disclosure [Line Items] | ||
Total amount recognized in AOCL, pre-tax | $ 0 | $ 16,600 |
UNITED KINGDOM | Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial loss | 2,794 | 5,372 |
Prior service cost | 518 | 549 |
Total amount recognized in AOCL, pre-tax | 3,312 | 5,921 |
UNITED STATES | Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial loss | 0 | 16,585 |
Prior service cost | $ 0 | $ 15 |
Employee Future Benefits - Chan
Employee Future Benefits - Change in AOCL (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Settlement recognition of net loss | $ (15,654) | $ 0 | $ (5,651) |
Net actuarial loss from prior years | (1,336) | (1,002) | $ (1,798) |
UNITED KINGDOM | Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net actuarial (gain) loss | (2,298) | (557) | |
Prior service cost | (25) | (23) | |
Net actuarial loss from prior years | (264) | (444) | |
Translation adjustment | (22) | 218 | |
Change in AOCL, pre-tax | (2,609) | (806) | |
UNITED STATES | Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net actuarial (gain) loss | 7,790 | 3,817 | |
Curtailment recognition of prior service cost | (15) | (9) | |
Settlement recognition of net loss | (24,375) | (653) | |
Change in AOCL, pre-tax | $ (16,600) | $ 3,155 |
Employee Future Benefits (Alloc
Employee Future Benefits (Allocation of Plan Assets) (Details) - Pension Plan - USD ($) $ in Thousands | Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 |
UNITED STATES | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Allocation of plan assets | $ 0 | $ 86,464 | $ 79,422 |
Allocation of plan assets, percent | 0.00% | 100.00% | |
UNITED STATES | Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Allocation of plan assets | $ 0 | $ 0 | |
Allocation of plan assets, percent | 0.00% | 0.00% | |
UNITED STATES | Debt Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Allocation of plan assets | $ 0 | $ 86,464 | |
Allocation of plan assets, percent | 0.00% | 100.00% | |
UNITED STATES | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Allocation of plan assets | $ 0 | $ 0 | |
Allocation of plan assets, percent | 0.00% | 0.00% | |
UNITED KINGDOM | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Allocation of plan assets | $ 33,389 | $ 31,222 | $ 26,748 |
Allocation of plan assets, percent | 100.00% | 100.00% | |
UNITED KINGDOM | Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Allocation of plan assets | $ 8,327 | $ 11,905 | |
Allocation of plan assets, percent | 24.90% | 38.10% | |
Target plan asset allocations, percent | 25.00% | ||
UNITED KINGDOM | Debt Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Allocation of plan assets | $ 0 | $ 0 | |
Allocation of plan assets, percent | 0.00% | 0.00% | |
UNITED KINGDOM | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Allocation of plan assets | $ 25,062 | $ 19,317 | |
Allocation of plan assets, percent | 75.10% | 61.90% | |
Target plan asset allocations, percent | 75.00% |
Employee Future Benefits (Actua
Employee Future Benefits (Actuarial Assumptions) (Details) - Pension Plan | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
UNITED STATES | |||
Discount rate applied for: | |||
Accrued benefit obligation | 2.40% | 2.40% | 3.30% |
Net periodic pension cost | 2.40% | 3.30% | 4.30% |
Expected long-term rate of return on plan assets | 3.50% | 3.50% | 6.80% |
UNITED KINGDOM | |||
Discount rate applied for: | |||
Accrued benefit obligation | 1.83% | 1.27% | 1.90% |
Net periodic pension cost | 1.00% | 1.00% | 1.70% |
Expected long-term rate of return on plan assets | 4.10% | 4.10% | 3.90% |
Expected long-term return on assets, (in Years) | 10 years |
Employee Future Benefits (Overa
Employee Future Benefits (Overall Pension Obligation) (Details) $ in Thousands | Jan. 02, 2022USD ($) |
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | |
2022 | $ 1,111 |
2023 | 1,076 |
2024 | 1,178 |
2025 | 1,264 |
2026 | 1,219 |
2027 through 2031 | 7,025 |
Expected future benefit payments | 12,873 |
Expected contributions to the plans in the next fiscal year | $ 2,200 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income and Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Accumulated Foreign Exchange Gains (Losses) [Roll Forward] | |||
Accumulated foreign exchange losses, beginning of period | $ (93,684) | $ (113,336) | $ (129,930) |
Foreign currency translation (loss) gain | (6,719) | 17,566 | 14,544 |
Income tax benefit on foreign currency translation (loss) gain | 6 | 17 | 25 |
Cumulative translation adjustment recognized upon deconsolidation of subsidiaries | 3,544 | 2,254 | 2,368 |
Less: foreign exchange gain attributable to non-controlling interest | 66 | 185 | 343 |
Accumulated foreign exchange losses, end of period | (96,919) | (93,684) | (113,336) |
Accumulated Amortization of Actuarial Net Losses [Roll Forward] | |||
Accumulated pension and other post-retirement adjustments, beginning of period | (18,379) | (16,833) | (22,989) |
Pension and other post-retirement adjustment | 2,250 | (3,163) | 962 |
Income tax (expense) benefit on pension and other post-retirement adjustments | (437) | 851 | (347) |
Amortization of actuarial net losses | 1,336 | 1,002 | 1,798 |
Income tax expense on amortization of actuarial net losses | (258) | (236) | (442) |
Pension settlement charges | 15,654 | 0 | 5,651 |
Income tax expense on pension settlement charges | (4,829) | 0 | (1,466) |
Accumulated pension and other post-retirement adjustments, end of period | (4,663) | (18,379) | (16,833) |
Accumulated other comprehensive loss | (101,582) | (112,063) | (130,169) |
Other comprehensive income, net of tax: | 10,547 | 18,291 | 23,093 |
Less: other comprehensive income attributable to non-controlling interest | 66 | 185 | 343 |
Other comprehensive income attributable to Masonite | $ 10,481 | $ 18,106 | $ 22,750 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Transactions involving cash: | |||
Interest paid | $ 42,703 | $ 45,380 | $ 44,388 |
Interest received | 250 | 1,110 | 2,064 |
Income taxes paid | 40,506 | 24,336 | 14,809 |
Income tax refunds | 875 | 805 | 1,713 |
Cash paid for operating lease liabilities | 29,886 | 29,943 | 24,522 |
Cash paid for finance lease liabilities | 1,470 | 1,393 | 528 |
Right-of-use assets acquired under operating leases | 49,703 | 51,381 | 36,774 |
Right-of-use assets acquired under finance leases | $ 0 | $ 0 | $ 26,326 |
Supplemental Cash Flow Inform_4
Supplemental Cash Flow Information Cash, cash equivalents and restricted cash (Details) - USD ($) $ in Thousands | Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | Dec. 30, 2018 |
Supplemental Cash Flow Elements [Abstract] | ||||
Cash and cash equivalents | $ 381,395 | $ 364,674 | ||
Restricted cash | 10,110 | 10,560 | ||
Total cash, cash equivalents and restricted cash | $ 391,505 | $ 375,234 | $ 177,608 | $ 126,141 |
Supplemental Cash Flow Inform_5
Supplemental Cash Flow Information Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jan. 02, 2022 | Jan. 03, 2021 | |
Supplemental Cash Flow Elements [Abstract] | ||
Property, plant and equipment additions in accounts payable | $ 10.7 | $ 5.6 |
Variable Interest Entity (Detai
Variable Interest Entity (Details) - USD ($) $ in Thousands | Jan. 02, 2022 | Jan. 03, 2021 |
Variable Interest Entity [Line Items] | ||
Current assets | $ 1,134,126 | $ 970,366 |
Property, plant and equipment, net | 626,797 | 625,126 |
Long-term deferred income taxes | 20,764 | 25,331 |
Other assets | 45,903 | 47,411 |
Current liabilities | (384,639) | (386,013) |
Other long-term liabilities | (52,874) | (55,080) |
Net assets of the VIE consolidated by Masonite | 688,239 | 684,957 |
Variable Interest Entity, Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Current assets | 9,057 | 6,411 |
Property, plant and equipment, net | 8,573 | 8,295 |
Long-term deferred income taxes | 1,023 | 2,431 |
Other assets | 4,202 | 3,973 |
Current liabilities | (3,895) | (3,139) |
Other long-term liabilities | (139) | (393) |
Non-controlling interest | (3,803) | (2,073) |
Net assets of the VIE consolidated by Masonite | $ 15,018 | $ 15,505 |
Variable Interest Entity (Narra
Variable Interest Entity (Narrative) (Details) $ in Thousands | Jan. 02, 2022USD ($) | Jan. 03, 2021USD ($) |
Variable Interest Entity [Line Items] | ||
Cash and cash equivalents | $ 381,395 | $ 364,674 |
Variable Interest Entity, Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Number of variable interest entities | 1 | 1 |
Cash and cash equivalents | $ 4,900 | $ 2,400 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details) - Senior Notes - Fair Value, Inputs, Level 2 - USD ($) $ in Thousands | Jan. 02, 2022 | Jan. 03, 2021 |
Senior Notes Due 2030 | Estimate of Fair Value Measurement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Estimated fair value of senior notes | $ 373,238 | |
Senior Notes Due 2030 | Reported Value Measurement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Estimated fair value of senior notes | 370,593 | |
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 | 526,730 | $ 536 |
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 | $ 495,128 | 494 |
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 | 316 | |
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 | $ 297 |
Subsequent Events (Details)
Subsequent Events (Details) $ in Millions | Apr. 04, 2022USD ($) | Feb. 21, 2022USD ($)authorization |
Forecast | Accelerated Share Repurchase | ||
Subsequent Event [Line Items] | ||
Stock repurchase program, authorized amount | $ 100 | |
Subsequent Event | ||
Subsequent Event [Line Items] | ||
Stock repurchase program, authorized amount | $ 200 | |
Number of previous authorized share repurchase authorizations | authorization | 4 |