Cover Page
Cover Page - shares | 9 Months Ended | |
Oct. 02, 2022 | Nov. 04, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Oct. 02, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-11796 | |
Entity Registrant Name | Masonite International Corporation | |
Entity Tax Identification Number | 98-0377314 | |
Entity Address, Address Line One | 2771 Rutherford Road | |
Entity Address, City or Town | Concord | |
Entity Address, State or Province | ON | |
Entity Address, Postal Zip Code | L4K 2N6 | |
Entity Address, Country | CA | |
City Area Code | 800 | |
Local Phone Number | 895-2723 | |
Title of 12(b) Security | Common Stock (no par value) | |
Trading Symbol | DOOR | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 22,276,041 | |
Entity Central Index Key | 0000893691 | |
Current Fiscal Year End Date | --01-01 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Incorporation, State or Country Code | A1 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income and Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2022 | Oct. 03, 2021 | Oct. 02, 2022 | Oct. 03, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net sales | $ 727,626 | $ 652,208 | $ 2,215,717 | $ 1,960,955 |
Cost of goods sold | 560,442 | 498,103 | 1,684,799 | 1,483,870 |
Gross profit | 167,184 | 154,105 | 530,918 | 477,085 |
Selling, general and administration expenses | 82,690 | 76,632 | 256,266 | 242,774 |
Restructuring (benefit) costs | (141) | 1,311 | (221) | 5,146 |
Asset impairment | 0 | 0 | 0 | 10,374 |
Loss on disposal of subsidiaries | 0 | 0 | 0 | (8,590) |
Operating income | 84,635 | 76,162 | 274,873 | 210,201 |
Interest expense, net | 10,266 | 11,349 | 31,098 | 35,213 |
Loss on extinguishment of debt | 0 | (13,583) | 0 | (13,583) |
Other (income) expense, net | 211 | (1,471) | (1,604) | (4,400) |
Income before income tax expense | 74,158 | 52,701 | 245,379 | 165,805 |
Income tax expense | 16,376 | 13,854 | 59,502 | 42,713 |
Net income | 57,782 | 38,847 | 185,877 | 123,092 |
Less: net income attributable to non-controlling interests | 745 | 1,156 | 2,743 | 3,374 |
Net income attributable to Masonite | $ 57,037 | $ 37,691 | $ 183,134 | $ 119,718 |
Basic earnings per common share attributable to Masonite (in dollars per share) | $ 2.56 | $ 1.57 | $ 8.09 | $ 4.92 |
Diluted earnings per common share attributable to Masonite (in dollars per share) | $ 2.54 | $ 1.54 | $ 8.01 | $ 4.84 |
Comprehensive income: | ||||
Net income | $ 57,782 | $ 38,847 | $ 185,877 | $ 123,092 |
Other comprehensive loss: | ||||
Foreign currency translation loss | (29,021) | (9,164) | (59,518) | (897) |
Amortization of actuarial net losses | 6 | 334 | 18 | 1,000 |
Income tax benefit (expense) related to other comprehensive loss | (45) | (83) | (58) | (196) |
Other comprehensive (loss) income, net of tax | (29,060) | (8,913) | (59,558) | (93) |
Comprehensive income | 28,722 | 29,934 | 126,319 | 122,999 |
Less: comprehensive (loss) income attributable to non-controlling interests | 700 | 990 | 3,339 | 3,477 |
Comprehensive income attributable to Masonite | $ 28,022 | $ 28,944 | $ 122,980 | $ 119,522 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Oct. 02, 2022 | Jan. 02, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 250,705 | $ 381,395 |
Restricted cash | 11,999 | 10,110 |
Accounts receivable, net | 401,664 | 343,414 |
Inventories, net | 437,202 | 347,476 |
Prepaid expenses and other assets | 49,214 | 50,399 |
Income taxes receivable | 5,260 | 1,332 |
Total current assets | 1,156,044 | 1,134,126 |
Property, plant and equipment, net | 618,240 | 626,797 |
Operating lease right-of-use assets | 161,589 | 176,445 |
Investment in equity investees | 14,789 | 14,994 |
Goodwill | 64,987 | 77,102 |
Intangible assets, net | 128,678 | 150,487 |
Deferred income taxes | 30,461 | 20,764 |
Other assets | 45,652 | 45,903 |
Total assets | 2,220,440 | 2,246,618 |
Current liabilities: | ||
Accounts payable | 135,461 | 138,788 |
Accrued expenses | 228,257 | 237,300 |
Income taxes payable | 11,156 | 8,551 |
Total current liabilities | 374,874 | 384,639 |
Long-term debt | 866,699 | 865,721 |
Long-term operating lease liabilities | 150,467 | 165,670 |
Deferred income taxes | 81,934 | 77,936 |
Other liabilities | 49,827 | 52,874 |
Total liabilities | 1,523,801 | 1,546,840 |
Commitments and Contingencies (Note 7) | ||
Equity: | ||
Share capital: unlimited shares authorized, no par value, 22,275,612 and 23,623,887 shares issued and outstanding as of October 2, 2022, and January 2, 2022, respectively | 522,575 | 543,400 |
Additional paid-in capital | 221,358 | 222,177 |
Retained earnings | 103,308 | 24,244 |
Accumulated other comprehensive loss | (161,736) | (101,582) |
Total equity attributable to Masonite | 685,505 | 688,239 |
Equity attributable to non-controlling interests | 11,134 | 11,539 |
Total equity | 696,639 | 699,778 |
Total liabilities and equity | $ 2,220,440 | $ 2,246,618 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - shares | Oct. 02, 2022 | Jan. 02, 2022 |
Statement of Financial Position [Abstract] | ||
Shares issued (in shares) | 22,275,612 | 23,623,887 |
Shares outstanding (in shares) | 22,275,612 | 23,623,887 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Changes in Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Equity Attributable to Noncontrolling Interests |
Balance at beginning of period 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 | 11,843 | (11,843) | ||||
Common shares issued under employee stock purchase plan | 1,593 | (322) | ||||
Common shares repurchased | 16,937 | 0 | 66,198 | |||
Share based compensation expense | 11,460 | |||||
Common shares withheld to cover income taxes payable due to delivery of share based awards | (4,834) | |||||
Net income | 123,092 | 119,718 | 3,374 | |||
Other comprehensive income (loss), net of tax | (93) | (196) | 103 | |||
Dividends to non-controlling interests | (2,397) | |||||
Balance at end of period at Oct. 03, 2021 | 740,481 | $ 549,468 | 218,127 | 73,905 | (112,259) | 11,240 |
Balance at beginning of period (in shares) at Jan. 03, 2021 | 24,422,934 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common shares issued for delivery of share based awards (in shares) | 195,858 | |||||
Common shares issued under employee stock purchase plan (in shares) | 15,091 | |||||
Common shares repurchased (in shares) | (737,843) | |||||
Balance at end of period (in shares) at Oct. 03, 2021 | 23,896,040 | |||||
Balance at beginning of period at Jul. 04, 2021 | 750,173 | $ 556,398 | 217,599 | 68,845 | (103,512) | 10,843 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common shares issued for delivery of share based awards | 779 | (779) | ||||
Common shares issued under employee stock purchase plan | 769 | (139) | ||||
Common shares repurchased | 8,478 | 0 | 32,631 | |||
Share based compensation expense | 2,336 | |||||
Common shares withheld to cover income taxes payable due to delivery of share based awards | (890) | |||||
Net income | 38,847 | 37,691 | 1,156 | |||
Other comprehensive income (loss), net of tax | (8,913) | (8,747) | (166) | |||
Dividends to non-controlling interests | (593) | |||||
Balance at end of period at Oct. 03, 2021 | 740,481 | $ 549,468 | 218,127 | 73,905 | (112,259) | 11,240 |
Balance at beginning of period (in shares) at Jul. 04, 2021 | 24,238,024 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common shares issued for delivery of share based awards (in shares) | 20,370 | |||||
Common shares issued under employee stock purchase plan (in shares) | 6,794 | |||||
Common shares repurchased (in shares) | (369,148) | |||||
Balance at end of period (in shares) at Oct. 03, 2021 | 23,896,040 | |||||
Balance at beginning of period 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 | 13,531 | (13,531) | ||||
Common shares issued under employee stock purchase plan | 1,574 | (207) | ||||
Common shares repurchased | 35,930 | 0 | 104,070 | |||
Share based compensation expense | 16,251 | |||||
Common shares withheld to cover income taxes payable due to delivery of share based awards | (3,332) | |||||
Net income | 185,877 | 183,134 | 2,743 | |||
Other comprehensive income (loss), net of tax | (59,558) | (60,154) | 596 | |||
Dividends to non-controlling interests | (3,744) | |||||
Balance at end of period at Oct. 02, 2022 | $ 696,639 | $ 522,575 | 221,358 | 103,308 | (161,736) | 11,134 |
Balance at beginning of period (in shares) at Jan. 02, 2022 | 23,623,887 | 23,623,887 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common shares issued for delivery of share based awards (in shares) | 191,166 | |||||
Common shares issued under employee stock purchase plan (in shares) | 16,567 | |||||
Common shares repurchased (in shares) | (1,556,008) | |||||
Balance at end of period (in shares) at Oct. 02, 2022 | 22,275,612 | 22,275,612 | ||||
Balance at beginning of period at Jul. 03, 2022 | $ 663,065 | $ 521,243 | 216,653 | 46,271 | (132,721) | 11,619 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common shares issued for delivery of share based awards | 555 | (555) | ||||
Common shares issued under employee stock purchase plan | 777 | (73) | ||||
Common shares repurchased | 0 | 0 | 0 | |||
Share based compensation expense | 5,556 | |||||
Common shares withheld to cover income taxes payable due to delivery of share based awards | (223) | |||||
Net income | 57,782 | 57,037 | 745 | |||
Other comprehensive income (loss), net of tax | (29,060) | (29,015) | (45) | |||
Dividends to non-controlling interests | (1,185) | |||||
Balance at end of period at Oct. 02, 2022 | $ 696,639 | $ 522,575 | $ 221,358 | $ 103,308 | $ (161,736) | $ 11,134 |
Balance at beginning of period (in shares) at Jul. 03, 2022 | 22,259,356 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common shares issued for delivery of share based awards (in shares) | 7,718 | |||||
Common shares issued under employee stock purchase plan (in shares) | 8,538 | |||||
Common shares repurchased (in shares) | 0 | |||||
Balance at end of period (in shares) at Oct. 02, 2022 | 22,275,612 | 22,275,612 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 02, 2022 | Oct. 03, 2021 | |
Cash flows from operating activities: | ||
Net income | $ 185,877 | $ 123,092 |
Adjustments to reconcile net income to net cash flow provided by operating activities: | ||
Loss on disposal of subsidiaries | 0 | (8,590) |
Loss on extinguishment of debt | 0 | (13,583) |
Depreciation | 51,977 | 52,876 |
Amortization | 13,164 | 16,749 |
Share based compensation expense | 16,251 | 11,460 |
Deferred income taxes | (4,675) | 11,989 |
Unrealized foreign exchange loss (gain) | 859 | (490) |
Share of income from equity investees, net of tax | (3,944) | (2,404) |
Dividend from equity investee | 4,500 | 4,500 |
Pension and post-retirement funding, net of expense | 140 | (3,708) |
Non-cash accruals and interest | 199 | 1,268 |
Gain on sale of property, plant and equipment | (1,245) | 1,954 |
Asset impairment | 0 | 10,374 |
Changes in assets and liabilities, net of acquisitions: | ||
Accounts receivable | (70,530) | (65,448) |
Inventories | (101,305) | (54,425) |
Prepaid expenses and other assets | 85 | 1,261 |
Accounts payable and accrued expenses | (3,307) | (28,587) |
Other assets and liabilities | (5,127) | (2,615) |
Net cash flow provided by operating activities | 82,919 | 100,019 |
Cash flows from investing activities: | ||
Additions to property, plant and equipment | (65,792) | (46,626) |
Acquisition of businesses, net of cash acquired | 0 | (160) |
Proceeds from sale of subsidiaries, net of cash disposed | 0 | 7,001 |
Proceeds from sale of property, plant and equipment | 6,393 | 3,377 |
Other investing activities | (2,068) | (1,782) |
Net cash flow used in investing activities | (61,467) | (38,190) |
Cash flows from financing activities: | ||
Proceeds from issuance of long-term debt | 0 | 375,000 |
Repayments of long-term debt | 0 | (300,945) |
Payment of debt extinguishment costs | 0 | 10,810 |
Payment of debt issuance costs | 0 | 4,672 |
Tax withholding on share based awards | (3,332) | (4,834) |
Distributions to non-controlling interests | (2,500) | (2,397) |
Repurchases of common shares | (140,000) | (83,135) |
Net cash flow used in financing activities | (145,832) | (31,793) |
Net foreign currency translation adjustment on cash | (4,421) | (1,294) |
(Decrease) Increase in cash, cash equivalents and restricted cash | (128,801) | 28,742 |
Cash, cash equivalents and restricted cash, beginning of period | 391,505 | 375,234 |
Cash, cash equivalents and restricted cash, at end of period | $ 262,704 | $ 403,976 |
Business Overview and Significa
Business Overview and Significant Accounting Policies | 9 Months Ended |
Oct. 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 condensed consolidated financial statements refer to Masonite International Corporation and its subsidiaries. Description of Business Masonite International Corporation is one of the largest manufacturers of doors in the world, with significant market share in both interior and exterior door products. Masonite operates 59 manufacturing and distribution facilities in seven countries and sells doors to customers throughout the world with our largest markets being the United States, Canada and the United Kingdom. Basis of Presentation We prepare these unaudited condensed consolidated financial statements in accordance with accounting principles generally accepted in the United States of America ("GAAP") and applicable rules and regulations of the U.S. Securities and Exchange Commission ("SEC") regarding interim financial reporting. Accordingly, they do not include all of the information and notes required by GAAP for annual financial statements. In the opinion of management, all adjustments consisting of normal and recurring entries considered necessary for a fair presentation of the results for the interim periods presented have been included. All significant intercompany balances and transactions have been eliminated. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect reported amounts in the financial statements and accompanying notes. These estimates are based on information available as of the date of the unaudited condensed consolidated financial statements; therefore, actual results could differ from those estimates. Interim results are not necessarily indicative of the results for a full year. These unaudited condensed consolidated financial statements should be read in conjunction with the Company's Annual Report on Form 10-K for the fiscal year ended January 2, 2022, as filed with the SEC (the "Annual Report"). 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 a year. Changes in Accounting Standards and Policies There have been no changes in the significant accounting policies from those that were disclosed in the fiscal year 2021 audited consolidated financial statements, other than as noted below. Adoption of Recent Accounting Pronouncements In December 2021, the Financial Accounting Standards Board ("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 adopted the new guidance as of January 3, 2022, the beginning of fiscal year 2022, and the adoption did not have a material impact on our financial statements. We do not anticipate the adoption will have a material impact on our annual disclosures. |
Acquisitions and Divestitures
Acquisitions and Divestitures | 9 Months Ended |
Oct. 02, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions and Divestitures | Acquisitions and DivestituresOn June 14, 2021, we completed the sale of all of 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 consists 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. |
Accounts Receivable
Accounts Receivable | 9 Months Ended |
Oct. 02, 2022 | |
Receivables [Abstract] | |
Accounts Receivable | Accounts Receivable Our customers consist mainly of retailers, distributors and contractors. Our ten largest customers accounted for 61.1% and 56.7% of total accounts receivable as of October 2, 2022, and January 2, 2022, respectively. Our largest customer, The Home Depot, Inc., accounted for more than 10% of the consolidated gross accounts receivable balance as of October 2, 2022, and January 2, 2022. The allowance for doubtful accounts balance was $2.1 million as of October 2, 2022, and January 2, 2022. We maintain an accounts receivable sales program with a third party (the "AR Sales Program"). Under the AR Sales Program, we can transfer ownership of eligible trade accounts receivable of certain customers. Receivables are sold outright to a third party who assumes the full risk of collection, without recourse to us in the event of a loss. Transfers of receivables under this program are accounted for as sales. Proceeds from the transfers reflect the face value of the accounts receivable less a discount. Receivables sold under the AR Sales Program are excluded from trade accounts receivable in the condensed consolidated balance sheets and are included in cash flows from operating activities in the condensed consolidated statements of cash flows. The discounts on the sales of trade accounts receivable sold, if any, under the AR Sales Program were not material for any of the periods presented and were recorded in selling, general and administration expenses within the condensed consolidated statements of income and comprehensive income. In most countries we pay and collect value-added tax ("VAT") when procuring goods and services within the normal course of business. VAT receivables are established in jurisdictions where VAT paid exceeds VAT collected and are recoverable through the filing of refund claims. |
Inventories
Inventories | 9 Months Ended |
Oct. 02, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories The amounts of inventory on hand were as follows as of the dates indicated: (In thousands) October 2, 2022 January 2, 2022 Raw materials $ 343,056 $ 275,269 Finished goods 103,269 78,324 Provision for obsolete or aged inventory (9,123) (6,117) Inventories, net $ 437,202 $ 347,476 |
Accrued Expenses
Accrued Expenses | 9 Months Ended |
Oct. 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) October 2, 2022 January 2, 2022 Accrued payroll $ 69,245 $ 66,048 Accrued rebates 53,876 51,200 Current portion of operating lease liabilities 25,977 25,551 Accrued interest 6,448 17,125 Other accruals 72,711 77,376 Total accrued expenses $ 228,257 $ 237,300 |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Oct. 02, 2022 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt (In thousands) October 2, 2022 January 2, 2022 3.50% senior unsecured notes due 2030 $ 375,000 $ 375,000 5.375% senior unsecured notes due 2028 500,000 500,000 Debt issuance costs (8,301) (9,279) Total long-term debt $ 866,699 $ 865,721 Interest expense related to our consolidated indebtedness under our senior unsecured notes was $10.4 million and $31.1 million for the three and nine months ended October 2, 2022, respectively, and $10.7 million and $33.5 million for the three and nine months ended October 3, 2021, respectively. 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 bear interest at 3.50% per annum, payable in cash semiannually in arrears on February 15 and August 15 of each year and are due February 15, 2030. The 2030 Notes were issued at par. Information concerning obligations under the 2030 Notes and the indenture governing them are described in detail in our Annual Report. As of October 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 bear interest at 5.375%, payable in cash semiannually in arrears on February 1 and August 1 of each year and are due February 1, 2028. The 2028 Notes were issued at par. Information concerning obligations under the 2028 Notes and the indenture governing them are described in detail in our Annual Report. As of October 2, 2022, we were in compliance with all covenants under the indenture governing the 2028 Notes. ABL Facility On January 31, 2019, we and certain of our subsidiaries entered into a $250.0 million asset-based revolving credit facility (the "ABL Facility") maturing on January 31, 2024, which replaced the previous facility. Borrowings under the ABL Facility bear interest at a rate equal to, at our option, (i) the United States, Canadian or United Kingdom Base Rate (each as defined in the credit agreement relating to the ABL Facility, the "Amended and Restated Credit Agreement") plus a margin ranging from 0.25% to 0.50% per annum, or (ii) the Adjusted LIBO Rate or BA Rate (each as defined in the Amended and Restated Credit Agreement), plus a margin ranging from 1.25% to 1.50% per annum. In addition to paying interest on any outstanding principal under the ABL Facility, a commitment fee is payable on the undrawn portion of the ABL Facility in an amount equal to 0.25% per annum of the average daily balance of unused commitments during each calendar quarter. The ABL Facility contains various customary representations, warranties by us and covenants that are described in detail in our Annual Report. As of October 2, 2022, we were in compliance with all covenants under the credit agreement governing the ABL Facility. We had availability of $250.0 million under our ABL Facility and there were no amounts outstanding as of October 2, 2022. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Oct. 02, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and ContingenciesThe following discussion describes material developments in our legal proceedings since January 2, 2022. Refer to Note 10. Commitments and Contingencies in the consolidated financial statements in our Annual Report for a full description of previously disclosed legal proceedings. 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 - Canada On May 19, 2020, an intended class proceeding was commenced in the Province of Québec, Canada naming as defendants Masonite Corporation, Masonite International Corporation, JELD-WEN, Inc., JELD-WEN Holding, Inc. and JELD-WEN of Canada, Ltd. The plaintiff alleges that the Masonite and JELD-WEN defendants engaged in anticompetitive conduct, including price-fixing involving interior molded doors. The intended class proceeding seeks damages, punitive damages and other relief. 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 plaintiff alleges that the Masonite and JELD-WEN defendants engaged in anticompetitive conduct, including price-fixing involving interior molded doors. The intended class proceeding seeks damages, punitive damages and other relief. This proceeding is at an early stage. The plaintiff served its certification record on March 31, 2021. The parties have written to the Federal Court asking for available dates in late June 2023 to schedule a two-day certification hearing. 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. |
Share Based Compensation Plans
Share Based Compensation Plans | 9 Months Ended |
Oct. 02, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Share Based Compensation Plans | Share Based Compensation Plans Share based compensation expense was $5.6 million and $16.3 million for the three and nine months ended October 2, 2022, respectively, and $2.3 million and $11.5 million for the three and nine months ended October 3, 2021, respectively. As of October 2, 2022, the total remaining unrecognized compensation expense related to share based compensation amounted to $33.0 million, which will be amortized over the weighted average remaining requisite service period of 1.9 years. Equity Incentive Plans Our equity incentive plans under the 2021 Equity Plan and 2012 Plan are described in detail and defined in our Annual Report. 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. As of October 2, 2022, there were 941,633 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, which is further described in our Annual Report. As of October 2, 2022, the liability and asset relating to deferred compensation had a fair value of $6.7 million and $6.3 million, respectively. As of October 2, 2022, participation in the deferred compensation plan is limited and no restricted stock awards have been deferred into the deferred compensation plan. All plan investments are categorized as having Level 1 valuation inputs as established by the FASB’s Fair Value Framework. Stock Appreciation Rights We have granted Stock Appreciation Rights ("SARs") to certain employees under both the 2021 Equity Plan and the 2012 Plan, which entitle the recipient to the appreciation in value of a number of common shares over the exercise price over a period of time, each as specified in the applicable award agreement. The exercise price of any SAR granted may not be less than the fair market value of our common shares on the date of grant. The compensation expense for the SARs is measured based on the fair value of the SARs at the date of grant and is recognized over the requisite service period. The SARs vest over a maximum of three years, have a life of ten years and settle in common shares. It is assumed that all time-based SARs will vest. We recognize forfeitures of SARs in the period in which they occur. The total fair value of SARs vested was $0.8 million during the nine months ended October 2, 2022. Nine Months Ended October 2, 2022 Stock Appreciation Rights Aggregate Intrinsic Value (in thousands) Weighted Average Exercise Price Average Remaining Contractual Life (Years) Outstanding, beginning of period 158,725 $ 7,324 $ 71.81 7.5 Granted 33,803 88.43 Exercised (4,580) 169 56.51 Cancelled and forfeited (3,743) 96.15 Outstanding, end of period 184,205 $ 1,246 $ 74.75 7.3 Exercisable, end of period 124,842 $ 1,220 $ 66.14 6.5 The value of SARs granted is determined using the Black-Scholes-Merton valuation model, and the corresponding expense 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 based upon historical employee exercise behavior and the contractual term of the options amongst other considerations. The weighted average grant date assumptions used for the SARs granted were as follows for the periods indicated: 2022 Grants SAR value (model conclusion) $ 26.52 Risk-free rate 2.0 % Expected dividend yield 0.0 % Expected volatility 26.5 % Expected term (years) 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. We recognize forfeitures of RSUs in the period in which they occur. Nine Months Ended October 2, 2022 Total Restricted Stock Units Outstanding Weighted Average Grant Date Fair Value Outstanding, beginning of period 442,106 $ 87.24 Granted 420,781 88.57 Performance adjustment (1) 25,234 57.19 Delivered (187,613) 77.98 Withheld to cover (2) (34,755) Forfeited (41,095) 95.12 Outstanding, end of period 624,658 $ 91.83 ___________ (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%. Certain 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 shares 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 half of the RSUs granted during the nine months ended October 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 nine months ended October 2, 2022, is being recognized over the weighted average requisite service period of 2.5 years. During the nine months ended October 2, 2022, 222,368 RSUs vested at a fair value of $16.0 million. |
Restructuring Costs
Restructuring Costs | 9 Months Ended |
Oct. 02, 2022 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Costs | Restructuring Costs In May 2021, we initiated further actions to improve overall business performance that includes the reorganization of our specialty door manufacturing capacity in our Architectural reportable segment. The reorganization of our manufacturing capacity 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. 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. 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. As of October 2, 2022, we do not expect to incur any material future charges related to the 2021 Plan, 2020 Plan or the 2019 Plan. The following tables summarize the restructuring (benefit) costs recorded for the periods indicated: Three Months Ended October 2, 2022 (In thousands) North American Residential Architectural Corporate & Other Total 2021 Plan $ — $ — $ — $ — 2020 Plan — 23 — 23 2019 Plan (178) — 14 (164) Total Restructuring (Benefit) Costs $ (178) $ 23 $ 14 $ (141) Three Months Ended October 3, 2021 (In thousands) North American Residential Architectural Corporate & Other Total 2021 Plan $ — $ 875 $ — $ 875 2020 Plan 4 439 — 443 2019 Plan (40) — 33 (7) Total Restructuring (Benefit) Costs $ (36) $ 1,314 $ 33 $ 1,311 Nine Months Ended October 2, 2022 (In thousands) North American Residential Architectural Corporate & Other Total 2021 Plan $ — $ 18 $ — $ 18 2020 Plan — 53 16 69 2019 Plan (359) — 51 (308) Total Restructuring (Benefit) Costs $ (359) $ 71 $ 67 $ (221) Nine Months Ended October 3, 2021 (In thousands) North American Residential Architectural Corporate & Other Total 2021 Plan $ — $ 1,414 $ — $ 1,414 2020 Plan 23 3,454 — 3,477 2019 Plan (68) — 323 255 Total Restructuring (Benefit) Costs $ (45) $ 4,868 $ 323 $ 5,146 Cumulative Amount Incurred Through October 2, 2022 (In thousands) North American Residential Europe Architectural Corporate & Other Total 2021 Plan $ — $ — $ 1,684 $ — $ 1,684 2020 Plan 52 — 5,285 39 5,376 2019 Plan 8,791 359 1,671 2,646 13,467 Total Restructuring Costs $ 8,843 $ 359 $ 8,640 $ 2,685 $ 20,527 The changes in the accrual for restructuring by activity were as follows for the periods indicated: (In thousands) January 2, Severance Closure Costs Cash Payments October 2, 2021 Plan $ 25 $ (26) $ 44 $ (43) $ — 2020 Plan 22 (35) 104 (92) (1) 2019 Plan 2 15 (323) 307 1 Total $ 49 $ (46) $ (175) $ 172 $ — (In thousands) January 3, Severance Closure Costs Cash Payments October 3, 2021 Plan $ — $ 546 $ 868 $ (1,321) $ 93 2020 Plan 1,492 264 3,213 (4,945) 24 2019 Plan 291 175 80 (456) 90 Total $ 1,783 $ 985 $ 4,161 $ (6,722) $ 207 |
Asset Impairment
Asset Impairment | 9 Months Ended |
Oct. 02, 2022 | |
Asset Impairment Charges [Abstract] | |
Asset Impairment | Asset ImpairmentDuring the nine months ended October 3, 2021, we recognized asset impairment charges of $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. This amount 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 condensed consolidated statements of income and comprehensive income. |
Income Taxes
Income Taxes | 9 Months Ended |
Oct. 02, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The effective tax rate differs from the Canadian statutory rate of 26.5% primarily due to mix of earnings in foreign jurisdictions that are subject to tax rates which differ from the Canadian statutory rate. In addition, we recognized $1.1 million of income tax benefit due to the exercise and delivery of share based awards during the nine months ended October 2, 2022, compared to $0.4 million and $2.7 million of income tax benefit during the three and nine months ended October 3, 2021. On August 16, 2022, President Biden signed the Inflation Reduction Act of 2022 ("IRA") into law. The IRA includes several changes to existing tax law, including a minimum tax on adjusted financial statement income of applicable corporations and an excise tax on certain corporate stock buybacks. The tax provisions included in the IRA are generally effective beginning January 1, 2023, and no significant impact to the consolidated financial statements is anticipated. Management continues to review the IRA tax provisions to assess impacts to our future consolidated financial statements. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Oct. 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. 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. (In thousands, except share and per share information) Three Months Ended Nine Months Ended October 2, 2022 October 3, 2021 October 2, 2022 October 3, 2021 Net income attributable to Masonite $ 57,037 $ 37,691 $ 183,134 $ 119,718 Shares used in computing basic earnings per share 22,267,684 24,068,744 22,624,830 24,329,647 Effect of dilutive securities: Incremental shares issuable under share compensation plans 224,190 357,649 248,197 389,971 Shares used in computing diluted earnings per share 22,491,874 24,426,393 22,873,027 24,719,618 Basic earnings per common share attributable to Masonite $ 2.56 $ 1.57 $ 8.09 $ 4.92 Diluted earnings per common share attributable to Masonite $ 2.54 $ 1.54 $ 8.01 $ 4.84 Anti-dilutive instruments excluded from diluted earnings per common share 212,197 31,530 223,660 31,530 The Company's Board of Directors has approved five share repurchase authorizations, the most recent being an incremental $200.0 million share repurchase program approved on February 21, 2022. In addition, the Company announced that its Board of Directors authorized it to enter into an accelerated share repurchase ("ASR") transaction as part of the new share repurchase program. The Company entered into an ASR transaction during the first quarter of 2022 with a third-party financial institution for the repurchase of $100.0 million of its outstanding common shares. At inception, pursuant to the agreement, the Company paid $100.0 million to the financial institution using cash on hand and received an initial delivery of 848,087 common shares on the same day. The final delivery of 319,678 common shares occurred in the second quarter. The $100.0 million ASR transaction was therefore completed in the second quarter with a total delivery of 1,167,765 common shares at a volume-weighted average price (“VWAP”) per share minus an agreed upon discount totaling $85.63 per share. The cash paid was reflected as a reduction of equity at the initial delivery of shares and the number of shares outstanding were reduced at the dates of physical delivery. |
Segment Information
Segment Information | 9 Months Ended |
Oct. 02, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Our reportable segments are organized and managed principally by end market: North American Residential, Europe and Architectural. The Corporate & Other category includes unallocated corporate costs and the results of immaterial operating segments which were not aggregated into any reportable segment. In addition to similar economic characteristics, we also consider the following factors in determining the reportable segments: the nature of business activities, the management structure directly accountable to our chief operating decision maker for operating and administrative activities, availability of discrete financial information and information presented to the Board of Directors and investors. Our management reviews net sales and Adjusted EBITDA (as defined below) to evaluate segment performance and allocate resources. Net assets are not allocated to the reportable segments. Adjusted EBITDA is a non-GAAP financial measure which does not have a standardized meaning under GAAP and is unlikely to be comparable to similar measures used by other companies. Adjusted EBITDA should not be considered as an alternative to either net income or operating cash flows determined in accordance with GAAP. Adjusted EBITDA is defined as net income (loss) attributable to Masonite adjusted to exclude the following items: • depreciation; • amortization; • share based compensation expense; • loss (gain) on disposal of property, plant and equipment; • registration and listing fees; • restructuring costs (benefit); • asset impairment; • loss (gain) on disposal of subsidiaries; • interest expense (income), net; • loss on extinguishment of debt; • other expense (income), net; • income tax expense (benefit); • other items; • loss (income) from discontinued operations, net of tax; and • net income (loss) attributable to non-controlling interest. This definition of Adjusted EBITDA differs from the definitions of EBITDA contained in the indentures governing the 2030 Notes and 2028 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: Three Months Ended October 2, 2022 (In thousands) North American Residential Europe Architectural Corporate & Other Total Net sales $ 579,908 $ 66,109 $ 82,388 $ 4,625 $ 733,030 Intersegment sales (468) (391) (4,545) — (5,404) Net sales to external customers $ 579,440 $ 65,718 $ 77,843 $ 4,625 $ 727,626 Adjusted EBITDA $ 115,092 $ 3,898 $ (219) $ (6,849) $ 111,922 Three Months Ended October 3, 2021 (In thousands) North American Residential Europe Architectural Corporate & Other Total Net sales $ 489,156 $ 86,280 $ 79,526 $ 4,030 $ 658,992 Intersegment sales (636) (1,882) (4,266) — (6,784) Net sales to external customers $ 488,520 $ 84,398 $ 75,260 $ 4,030 $ 652,208 Adjusted EBITDA $ 91,482 $ 16,680 $ 1,040 $ (4,441) $ 104,761 Nine Months Ended October 2, 2022 (In thousands) North American Residential Europe Architectural Corporate & Other Total Net Sales $ 1,757,820 $ 222,120 $ 236,941 $ 15,641 $ 2,232,522 Intersegment sales (2,040) (2,081) (12,684) — (16,805) Net sales to external customers $ 1,755,780 $ 220,039 $ 224,257 $ 15,641 $ 2,215,717 Adjusted EBITDA $ 367,733 $ 24,307 $ (3,039) $ (34,202) $ 354,799 Nine Months Ended October 3, 2021 (In thousands) North American Residential Europe Architectural Corporate & Other Total Net Sales $ 1,460,358 $ 266,665 $ 235,834 $ 15,761 $ 1,978,618 Intersegment sales (1,985) (5,918) (9,760) — (17,663) Net sales to external customers $ 1,458,373 $ 260,747 $ 226,074 $ 15,761 $ 1,960,955 Adjusted EBITDA $ 286,009 $ 50,019 $ 3,514 $ (22,192) $ 317,350 A reconciliation of our net income attributable to Masonite to consolidated Adjusted EBITDA is set forth as follows for the periods indicated: Three Months Ended Nine Months Ended (In thousands) October 2, 2022 October 3, 2021 October 2, 2022 October 3, 2021 Net income attributable to Masonite $ 57,037 $ 37,691 $ 183,134 $ 119,718 Plus: Depreciation 17,461 17,365 51,977 52,876 Amortization 4,256 5,423 13,164 16,749 Share based compensation expense 5,556 2,336 16,251 11,460 Loss (gain) on disposal of property, plant and equipment 155 2,164 (1,245) 1,954 Restructuring (benefit) costs (141) 1,311 (221) 5,146 Asset impairment — — — 10,374 Loss on disposal of subsidiaries — — — 8,590 Interest expense, net 10,266 11,349 31,098 35,213 Loss on extinguishment of debt — 13,583 — 13,583 Other (income) expense, net 211 (1,471) (1,604) (4,400) Income tax expense 16,376 13,854 59,502 42,713 Net income attributable to non-controlling interest 745 1,156 2,743 3,374 Adjusted EBITDA $ 111,922 $ 104,761 $ 354,799 $ 317,350 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss and Other Comprehensive (Loss) Income | 9 Months Ended |
Oct. 02, 2022 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss and Other Comprehensive (Loss) Income | Accumulated Other Comprehensive Loss and Other Comprehensive (Loss) Income A rollforward of the components of accumulated other comprehensive loss is as follows for the periods indicated: Three Months Ended Nine Months Ended (In thousands) October 2, 2022 October 3, 2021 October 2, 2022 October 3, 2021 Accumulated foreign currency translation losses, beginning of period $ (128,070) $ (85,664) $ (96,919) $ (93,684) Foreign currency translation loss (29,021) (9,164) (59,518) (4,441) Income tax (benefit) expense on foreign currency translation loss (45) (15) (58) 7 Cumulative translation adjustment recognized upon deconsolidation of subsidiary — — — 3,544 Less: foreign currency translation (loss) gain attributable to non-controlling interest (45) (166) 596 103 Accumulated foreign currency translation losses, end of period (157,091) (94,677) (157,091) (94,677) Accumulated pension and other post-retirement adjustments, beginning of period (4,651) (17,848) (4,663) (18,379) Amortization of actuarial net losses 6 334 18 1,000 Income tax expense on amortization of actuarial net losses — (68) — (203) Accumulated pension and other post-retirement adjustments (4,645) (17,582) (4,645) (17,582) Accumulated other comprehensive loss $ (161,736) $ (112,259) $ (161,736) $ (112,259) Other comprehensive (loss) income, net of tax $ (29,060) $ (8,913) $ (59,558) $ (93) Less: other comprehensive (loss) income attributable to non-controlling interest (45) (166) 596 103 Other comprehensive (loss) income attributable to Masonite $ (29,015) $ (8,747) $ (60,154) $ (196) Cumulative translation adjustments are reclassified out of accumulated other comprehensive loss into loss on disposal of subsidiaries in the condensed 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 condensed consolidated statements of income and comprehensive income. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 9 Months Ended |
Oct. 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: Nine Months Ended (In thousands) October 2, 2022 October 3, 2021 Transactions involving cash: Interest paid $ 40,650 $ 42,472 Interest received 1,032 182 Income taxes paid 67,841 31,587 Income tax refunds 1,576 406 Cash paid for operating lease liabilities 24,526 22,100 Cash paid for finance lease liabilities 1,005 989 Non-cash transactions from operating activities: Right-of-use assets acquired under operating leases 4,694 49,040 The following reconciles total cash, cash equivalents and restricted cash as of the dates indicated: October 2, 2022 January 2, 2022 Cash and cash equivalents $ 250,705 $ 381,395 Restricted cash 11,999 10,110 Total cash, cash equivalents and restricted cash $ 262,704 $ 391,505 Property, plant and equipment additions in accounts payable were $12.2 million and $10.7 million as of October 2, 2022, and January 2, 2022, respectively. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Oct. 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: October 2, 2022 January 2, 2022 (In thousands) Fair Value Carrying Value Fair Value Carrying Value 3.50% senior unsecured notes due 2030 $ 289,380 $ 370,999 $ 373,238 $ 370,593 5.375% senior unsecured notes due 2028 $ 441,075 $ 495,700 $ 526,730 $ 495,128 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
Subsequent Events | 9 Months Ended |
Oct. 02, 2022 | |
Subsequent Event Abstract [Abstract] | |
Subsequent Event | Subsequent Event On October 28, 2022, the Company entered into an amendment (the "ABL Amendment") to our ABL Facility, which, among other things, (i) increased the revolving credit commitments available thereunder by $100.0 million (subject to certain specified sublimits available thereunder) to an aggregate of $350.0 million and (ii) replaced the LIBOR-based interest rate applicable to borrowing in U.S. dollars with an interest rate based on the sum of (x) a secured overnight financing rate published by an administrator of such rate plus plus (y) 10 basis points. The terms of the ABL Facility remained otherwise substantially unchanged. As of November 7, 2022, we had availability of $350.0 million under our ABL Facility and there were no amounts outstanding. On November 2, 2022, the Company entered into a definitive agreement to acquire the holding company of Endura Products ("Endura"), for approximately $375.0 million in cash, subject to customary closing adjustments and regulatory approval. Endura is a leading innovator and manufacturer high-performance door frames and door system components. The transaction is currently expected to be completed near the end of 2022, subject to satisfaction of customary closing conditions, including expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act. The transaction will be funded with a combination of cash on hand, borrowings under the ABL Facility and an expected new term loan. |
Business Overview and Signifi_2
Business Overview and Significant Accounting Policies (Policies) | 9 Months Ended |
Oct. 02, 2022 | |
Accounting Policies [Abstract] | |
Adoption of Recent Accounting Pronouncements | Adoption of Recent Accounting Pronouncements In December 2021, the Financial Accounting Standards Board ("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 adopted the new guidance as of January 3, 2022, the beginning of fiscal year 2022, and the adoption did not have a material impact on our financial statements. We do not anticipate the adoption will have a material impact on our annual disclosures. |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Oct. 02, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | The amounts of inventory on hand were as follows as of the dates indicated: (In thousands) October 2, 2022 January 2, 2022 Raw materials $ 343,056 $ 275,269 Finished goods 103,269 78,324 Provision for obsolete or aged inventory (9,123) (6,117) Inventories, net $ 437,202 $ 347,476 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 9 Months Ended |
Oct. 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) October 2, 2022 January 2, 2022 Accrued payroll $ 69,245 $ 66,048 Accrued rebates 53,876 51,200 Current portion of operating lease liabilities 25,977 25,551 Accrued interest 6,448 17,125 Other accruals 72,711 77,376 Total accrued expenses $ 228,257 $ 237,300 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Oct. 02, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | (In thousands) October 2, 2022 January 2, 2022 3.50% senior unsecured notes due 2030 $ 375,000 $ 375,000 5.375% senior unsecured notes due 2028 500,000 500,000 Debt issuance costs (8,301) (9,279) Total long-term debt $ 866,699 $ 865,721 |
Share Based Compensation Plans
Share Based Compensation Plans (Tables) | 9 Months Ended |
Oct. 02, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Stock Appreciation Rights Award Activity | Nine Months Ended October 2, 2022 Stock Appreciation Rights Aggregate Intrinsic Value (in thousands) Weighted Average Exercise Price Average Remaining Contractual Life (Years) Outstanding, beginning of period 158,725 $ 7,324 $ 71.81 7.5 Granted 33,803 88.43 Exercised (4,580) 169 56.51 Cancelled and forfeited (3,743) 96.15 Outstanding, end of period 184,205 $ 1,246 $ 74.75 7.3 Exercisable, end of period 124,842 $ 1,220 $ 66.14 6.5 |
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: 2022 Grants SAR value (model conclusion) $ 26.52 Risk-free rate 2.0 % Expected dividend yield 0.0 % Expected volatility 26.5 % Expected term (years) 6.0 |
Restricted Stock Units Award Activity | Nine Months Ended October 2, 2022 Total Restricted Stock Units Outstanding Weighted Average Grant Date Fair Value Outstanding, beginning of period 442,106 $ 87.24 Granted 420,781 88.57 Performance adjustment (1) 25,234 57.19 Delivered (187,613) 77.98 Withheld to cover (2) (34,755) Forfeited (41,095) 95.12 Outstanding, end of period 624,658 $ 91.83 ___________ (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%. Certain 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 shares settled to cover statutory requirements for income and other employment taxes. We remit the equivalent cash to the appropriate taxing authorities. These net share settlements had the effect of share repurchases by us as we reduced and retired the number of shares that would have otherwise been issued as a result of the vesting. |
Restructuring Costs (Tables)
Restructuring Costs (Tables) | 9 Months Ended |
Oct. 02, 2022 | |
Restructuring and Related Activities [Abstract] | |
Summary of Restructuring (Benefit) Costs by Plan | The following tables summarize the restructuring (benefit) costs recorded for the periods indicated: Three Months Ended October 2, 2022 (In thousands) North American Residential Architectural Corporate & Other Total 2021 Plan $ — $ — $ — $ — 2020 Plan — 23 — 23 2019 Plan (178) — 14 (164) Total Restructuring (Benefit) Costs $ (178) $ 23 $ 14 $ (141) Three Months Ended October 3, 2021 (In thousands) North American Residential Architectural Corporate & Other Total 2021 Plan $ — $ 875 $ — $ 875 2020 Plan 4 439 — 443 2019 Plan (40) — 33 (7) Total Restructuring (Benefit) Costs $ (36) $ 1,314 $ 33 $ 1,311 Nine Months Ended October 2, 2022 (In thousands) North American Residential Architectural Corporate & Other Total 2021 Plan $ — $ 18 $ — $ 18 2020 Plan — 53 16 69 2019 Plan (359) — 51 (308) Total Restructuring (Benefit) Costs $ (359) $ 71 $ 67 $ (221) Nine Months Ended October 3, 2021 (In thousands) North American Residential Architectural Corporate & Other Total 2021 Plan $ — $ 1,414 $ — $ 1,414 2020 Plan 23 3,454 — 3,477 2019 Plan (68) — 323 255 Total Restructuring (Benefit) Costs $ (45) $ 4,868 $ 323 $ 5,146 Cumulative Amount Incurred Through October 2, 2022 (In thousands) North American Residential Europe Architectural Corporate & Other Total 2021 Plan $ — $ — $ 1,684 $ — $ 1,684 2020 Plan 52 — 5,285 39 5,376 2019 Plan 8,791 359 1,671 2,646 13,467 Total Restructuring Costs $ 8,843 $ 359 $ 8,640 $ 2,685 $ 20,527 |
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 2, Severance Closure Costs Cash Payments October 2, 2021 Plan $ 25 $ (26) $ 44 $ (43) $ — 2020 Plan 22 (35) 104 (92) (1) 2019 Plan 2 15 (323) 307 1 Total $ 49 $ (46) $ (175) $ 172 $ — (In thousands) January 3, Severance Closure Costs Cash Payments October 3, 2021 Plan $ — $ 546 $ 868 $ (1,321) $ 93 2020 Plan 1,492 264 3,213 (4,945) 24 2019 Plan 291 175 80 (456) 90 Total $ 1,783 $ 985 $ 4,161 $ (6,722) $ 207 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Oct. 02, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | (In thousands, except share and per share information) Three Months Ended Nine Months Ended October 2, 2022 October 3, 2021 October 2, 2022 October 3, 2021 Net income attributable to Masonite $ 57,037 $ 37,691 $ 183,134 $ 119,718 Shares used in computing basic earnings per share 22,267,684 24,068,744 22,624,830 24,329,647 Effect of dilutive securities: Incremental shares issuable under share compensation plans 224,190 357,649 248,197 389,971 Shares used in computing diluted earnings per share 22,491,874 24,426,393 22,873,027 24,719,618 Basic earnings per common share attributable to Masonite $ 2.56 $ 1.57 $ 8.09 $ 4.92 Diluted earnings per common share attributable to Masonite $ 2.54 $ 1.54 $ 8.01 $ 4.84 Anti-dilutive instruments excluded from diluted earnings per common share 212,197 31,530 223,660 31,530 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Oct. 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: Three Months Ended October 2, 2022 (In thousands) North American Residential Europe Architectural Corporate & Other Total Net sales $ 579,908 $ 66,109 $ 82,388 $ 4,625 $ 733,030 Intersegment sales (468) (391) (4,545) — (5,404) Net sales to external customers $ 579,440 $ 65,718 $ 77,843 $ 4,625 $ 727,626 Adjusted EBITDA $ 115,092 $ 3,898 $ (219) $ (6,849) $ 111,922 Three Months Ended October 3, 2021 (In thousands) North American Residential Europe Architectural Corporate & Other Total Net sales $ 489,156 $ 86,280 $ 79,526 $ 4,030 $ 658,992 Intersegment sales (636) (1,882) (4,266) — (6,784) Net sales to external customers $ 488,520 $ 84,398 $ 75,260 $ 4,030 $ 652,208 Adjusted EBITDA $ 91,482 $ 16,680 $ 1,040 $ (4,441) $ 104,761 Nine Months Ended October 2, 2022 (In thousands) North American Residential Europe Architectural Corporate & Other Total Net Sales $ 1,757,820 $ 222,120 $ 236,941 $ 15,641 $ 2,232,522 Intersegment sales (2,040) (2,081) (12,684) — (16,805) Net sales to external customers $ 1,755,780 $ 220,039 $ 224,257 $ 15,641 $ 2,215,717 Adjusted EBITDA $ 367,733 $ 24,307 $ (3,039) $ (34,202) $ 354,799 Nine Months Ended October 3, 2021 (In thousands) North American Residential Europe Architectural Corporate & Other Total Net Sales $ 1,460,358 $ 266,665 $ 235,834 $ 15,761 $ 1,978,618 Intersegment sales (1,985) (5,918) (9,760) — (17,663) Net sales to external customers $ 1,458,373 $ 260,747 $ 226,074 $ 15,761 $ 1,960,955 Adjusted EBITDA $ 286,009 $ 50,019 $ 3,514 $ (22,192) $ 317,350 |
Reconciliation of Consolidated Adjusted EBITDA to Net Income (Loss) Attributable to Masonite | A reconciliation of our net income attributable to Masonite to consolidated Adjusted EBITDA is set forth as follows for the periods indicated: Three Months Ended Nine Months Ended (In thousands) October 2, 2022 October 3, 2021 October 2, 2022 October 3, 2021 Net income attributable to Masonite $ 57,037 $ 37,691 $ 183,134 $ 119,718 Plus: Depreciation 17,461 17,365 51,977 52,876 Amortization 4,256 5,423 13,164 16,749 Share based compensation expense 5,556 2,336 16,251 11,460 Loss (gain) on disposal of property, plant and equipment 155 2,164 (1,245) 1,954 Restructuring (benefit) costs (141) 1,311 (221) 5,146 Asset impairment — — — 10,374 Loss on disposal of subsidiaries — — — 8,590 Interest expense, net 10,266 11,349 31,098 35,213 Loss on extinguishment of debt — 13,583 — 13,583 Other (income) expense, net 211 (1,471) (1,604) (4,400) Income tax expense 16,376 13,854 59,502 42,713 Net income attributable to non-controlling interest 745 1,156 2,743 3,374 Adjusted EBITDA $ 111,922 $ 104,761 $ 354,799 $ 317,350 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss and Other Comprehensive (Loss) Income (Tables) | 9 Months Ended |
Oct. 02, 2022 | |
Equity [Abstract] | |
Schedule of Components of Accumulated Other Comprehensive (Loss) Income | A rollforward of the components of accumulated other comprehensive loss is as follows for the periods indicated: Three Months Ended Nine Months Ended (In thousands) October 2, 2022 October 3, 2021 October 2, 2022 October 3, 2021 Accumulated foreign currency translation losses, beginning of period $ (128,070) $ (85,664) $ (96,919) $ (93,684) Foreign currency translation loss (29,021) (9,164) (59,518) (4,441) Income tax (benefit) expense on foreign currency translation loss (45) (15) (58) 7 Cumulative translation adjustment recognized upon deconsolidation of subsidiary — — — 3,544 Less: foreign currency translation (loss) gain attributable to non-controlling interest (45) (166) 596 103 Accumulated foreign currency translation losses, end of period (157,091) (94,677) (157,091) (94,677) Accumulated pension and other post-retirement adjustments, beginning of period (4,651) (17,848) (4,663) (18,379) Amortization of actuarial net losses 6 334 18 1,000 Income tax expense on amortization of actuarial net losses — (68) — (203) Accumulated pension and other post-retirement adjustments (4,645) (17,582) (4,645) (17,582) Accumulated other comprehensive loss $ (161,736) $ (112,259) $ (161,736) $ (112,259) Other comprehensive (loss) income, net of tax $ (29,060) $ (8,913) $ (59,558) $ (93) Less: other comprehensive (loss) income attributable to non-controlling interest (45) (166) 596 103 Other comprehensive (loss) income attributable to Masonite $ (29,015) $ (8,747) $ (60,154) $ (196) |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 9 Months Ended |
Oct. 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: Nine Months Ended (In thousands) October 2, 2022 October 3, 2021 Transactions involving cash: Interest paid $ 40,650 $ 42,472 Interest received 1,032 182 Income taxes paid 67,841 31,587 Income tax refunds 1,576 406 Cash paid for operating lease liabilities 24,526 22,100 Cash paid for finance lease liabilities 1,005 989 Non-cash transactions from operating activities: Right-of-use assets acquired under operating leases 4,694 49,040 |
Schedule of Cash, Cash Equivalents and Restricted Cash | The following reconciles total cash, cash equivalents and restricted cash as of the dates indicated: October 2, 2022 January 2, 2022 Cash and cash equivalents $ 250,705 $ 381,395 Restricted cash 11,999 10,110 Total cash, cash equivalents and restricted cash $ 262,704 $ 391,505 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Oct. 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: October 2, 2022 January 2, 2022 (In thousands) Fair Value Carrying Value Fair Value Carrying Value 3.50% senior unsecured notes due 2030 $ 289,380 $ 370,999 $ 373,238 $ 370,593 5.375% senior unsecured notes due 2028 $ 441,075 $ 495,700 $ 526,730 $ 495,128 |
Business Overview and Signifi_3
Business Overview and Significant Accounting Policies (Details) | Oct. 02, 2022 facility Country |
Accounting Policies [Abstract] | |
Number of manufacturing locations | facility | 59 |
Number of countries | Country | 7 |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jun. 14, 2021 | Oct. 02, 2022 | Oct. 03, 2021 | Oct. 02, 2022 | Oct. 03, 2021 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Loss on disposal of subsidiaries | $ 8,600 | $ 0 | $ 0 | $ 0 | $ 8,590 |
Czech Business | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Consideration, net of cash disposed | 7,000 | ||||
Loss on disposal of subsidiaries | $ 0 | ||||
Write-off of assets and other professional fees | 5,100 | ||||
Recognition of cumulative translation adjustment ourt of accumulated other comprehensive loss | $ 3,500 |
Accounts Receivable (Details)
Accounts Receivable (Details) $ in Thousands | 9 Months Ended | 12 Months Ended |
Oct. 02, 2022 USD ($) Customer | Jan. 02, 2022 USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Allowance for doubtful accounts | $ | $ 2,100 | $ 2,100 |
Accounts Receivable | Customer Concentration Risk | Ten Largest Customers | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Concentration risk, customers | Customer | 10 | |
Concentration risk, percent | 61.10% | 56.70% |
Accounts Receivable | Customer Concentration Risk | The Home Depot, Inc. | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Concentration risk, percent | 10% | 10% |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Oct. 02, 2022 | Jan. 02, 2022 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 343,056 | $ 275,269 |
Finished goods | 103,269 | 78,324 |
Provision for obsolete or aged inventory | (9,123) | (6,117) |
Inventories, net | $ 437,202 | $ 347,476 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | Oct. 02, 2022 | Jan. 02, 2022 |
Accrued Expenses [Abstract] | ||
Accrued payroll | $ 69,245 | $ 66,048 |
Accrued rebates | 53,876 | 51,200 |
Current portion of operating lease liabilities | 25,977 | 25,551 |
Accrued interest | 6,448 | 17,125 |
Other accruals | 72,711 | 77,376 |
Total accrued expenses | $ 228,257 | $ 237,300 |
Long-Term Debt (Schedule of Lon
Long-Term Debt (Schedule of Long-Term Debt) (Details) - USD ($) $ in Thousands | Oct. 02, 2022 | Jan. 02, 2022 | Jul. 26, 2021 | Jul. 25, 2019 |
Debt Instrument [Line Items] | ||||
Total long-term debt | $ 866,699 | $ 865,721 | ||
Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Debt issuance costs | (8,301) | (9,279) | ||
Senior Notes | Senior Notes 2030 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 375,000 | 375,000 | ||
Interest rate stated percentage | 3.50% | |||
Senior Notes | Senior Notes Due 2028 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 500,000 | $ 500,000 | ||
Interest rate stated percentage | 5.375% |
Long-Term Debt (Narrative) (Det
Long-Term Debt (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||||
Oct. 02, 2022 | Oct. 03, 2021 | Oct. 02, 2022 | Oct. 03, 2021 | Jul. 26, 2021 | Jul. 25, 2019 | Jan. 31, 2019 | |
Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Interest expense | $ 10,400,000 | $ 10,700,000 | $ 31,100,000 | $ 33,500,000 | |||
Senior Notes | Senior Notes 2030 | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate stated percentage | 3.50% | ||||||
Aggregate principal | $ 375,000,000 | ||||||
Senior Notes | Senior Notes Due 2028 | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate stated percentage | 5.375% | ||||||
Aggregate principal | $ 500,000,000 | ||||||
Revolving Credit Facility | ABL Facility 2024 | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 250,000,000 | ||||||
Revolving credit facility availability | $ 250,000,000 | $ 250,000,000 | |||||
Minimum | Revolving Credit Facility | ABL Facility 2024 | |||||||
Debt Instrument [Line Items] | |||||||
Unutilized commitment fee percentage | 0.25% | ||||||
Minimum | Revolving Credit Facility | ABL Facility 2024 | Base Rate | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 0.25% | ||||||
Minimum | Revolving Credit Facility | ABL Facility 2024 | London Interbank Offered Rate (LIBOR) | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 1.25% | ||||||
Maximum | Revolving Credit Facility | ABL Facility 2024 | Base Rate | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 0.50% | ||||||
Maximum | Revolving Credit Facility | ABL Facility 2024 | London Interbank Offered Rate (LIBOR) | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 1.50% |
Share Based Compensation Plan_2
Share Based Compensation Plans (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 02, 2022 | Oct. 03, 2021 | Oct. 02, 2022 | Oct. 03, 2021 | Mar. 10, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation | $ 5,556 | $ 2,336 | $ 16,251 | $ 11,460 | |
Share based compensation unrecognized | 33,000 | $ 33,000 | |||
Weighted average remaining requisite service period | 1 year 10 months 24 days | ||||
Deferred compensation liability | 6,700 | $ 6,700 | |||
Deferred compensation asset | $ 6,300 | $ 6,300 | |||
2021 Plan | Common Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Equity awards not to exceed (in shares) | 880,000 | ||||
Common stock available for future issuance (in shares) | 941,633 | 941,633 | |||
Stock Appreciation Rights (SARs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 3 years | ||||
Plan term | 10 years | ||||
Vested, fair value | $ 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 | ||||
Average requisite service period | 2 years 6 months | ||||
Units vested (in shares) | 222,368 | ||||
Fair value of shares vested | $ 16,000 | ||||
Restricted Stock Units (RSUs) | Service Requirement | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting percentage | 45% | ||||
Restricted Stock Units (RSUs) | Service and Performance Requirements | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting percentage | 55% |
Share Based Compensation Plan_3
Share Based Compensation Plans (SARs) (Details) - Stock Appreciation Rights (SARs) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended |
Oct. 02, 2022 | Jan. 02, 2022 | |
Stock Appreciation Rights | ||
Outstanding, beginning of period (in shares) | 158,725 | |
Granted (in shares) | 33,803 | |
Exercised (in shares) | (4,580) | |
Forfeited (in shares) | (3,743) | |
Outstanding, end of period (in shares) | 184,205 | 158,725 |
Exercisable, shares | 124,842 | |
Aggregate Intrinsic Value & Average Remaining Contractual Life | ||
Outstanding, beginning of period, aggregate intrinsic value | $ 7,324 | |
Exercised, aggregate intrinsic value | 169 | |
Outstanding, end period, aggregate intrinsic value | 1,246 | $ 7,324 |
Exercisable, aggregate intrinsic value | $ 1,220 | |
Outstanding, beginning of period, weighted average remaining contractual term | 7 years 3 months 18 days | 7 years 6 months |
Outstanding, end of period, weighted average remaining contractual term | 7 years 3 months 18 days | 7 years 6 months |
Exercisable, weighted average remaining contractual term | 6 years 6 months | |
Weighted Average Exercise Price | ||
Outstanding, beginning of period (in dollars per share) | $ 71.81 | |
Granted (in dollars per share) | 88.43 | |
Exercised (in dollars per share) | 56.51 | |
Forfeited (in dollars per share) | 96.15 | |
Outstanding, end of period (in dollars per share) | 74.75 | $ 71.81 |
Exercisable, end of period (in dollars per share) | $ 66.14 |
Share Based Compensation Plan_4
Share Based Compensation Plans (Weighted Average Grant Date Assumptions) (Details) - Stock Appreciation Rights (SARs) | 9 Months Ended |
Oct. 02, 2022 $ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
SAR value (model conclusion) | $ 26.52 |
Risk-free rate | 2% |
Expected dividend yield | 0% |
Expected volatility | 26.50% |
Expected term (years) | 6 years |
Share Based Compensation Plan_5
Share Based Compensation Plans (RSUs) (Details) | 9 Months Ended |
Oct. 02, 2022 $ / shares shares | |
Weighted Average Grant Date Fair Value | |
Performance adjustment (in dollars per share) | $ / shares | $ 57.19 |
Restricted Stock Units (RSUs) | |
Total Restricted Stock Units Outstanding | |
Outstanding, beginning of period (in shares) | 442,106 |
Granted (in shares) | 420,781 |
Performance adjustment (in shares) | 25,234 |
Delivered (in shares) | (187,613) |
Withheld to cover (in shares) | (34,755) |
Forfeited (in shares) | (41,095) |
Outstanding, end of period (in shares) | 624,658 |
Weighted Average Grant Date Fair Value | |
Outstanding, beginning of period (in dollars per share) | $ / shares | $ 87.24 |
Granted (in dollars per share) | $ / shares | 88.57 |
Delivered (in dollars per share) | $ / shares | 77.98 |
Forfeited (in dollars per share) | $ / shares | 95.12 |
Outstanding, end of period (in dollars per share) | $ / shares | $ 91.83 |
Restructuring Costs (Details)
Restructuring Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Oct. 02, 2022 | Oct. 03, 2021 | Oct. 02, 2022 | Oct. 03, 2021 | Jan. 02, 2022 | Jan. 03, 2021 | |
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring (benefit) costs | $ (141) | $ 1,311 | $ (221) | $ 5,146 | ||
Cumulative amount incurred to date | 20,527 | 20,527 | ||||
Restructuring reserve | 0 | (207) | 0 | (207) | $ (49) | $ (1,783) |
Cash payments | 172 | 6,722 | ||||
Severance | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring (benefit) costs | (46) | 985 | ||||
Closure Costs | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring (benefit) costs | (175) | 4,161 | ||||
North American Residential | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring (benefit) costs | (178) | (36) | (359) | (45) | ||
Cumulative amount incurred to date | 8,843 | 8,843 | ||||
Europe | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Cumulative amount incurred to date | 359 | 359 | ||||
Architectural | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring (benefit) costs | 23 | 1,314 | 71 | 4,868 | ||
Cumulative amount incurred to date | 8,640 | 8,640 | ||||
Corporate & Other | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring (benefit) costs | 14 | 33 | 67 | 323 | ||
Cumulative amount incurred to date | 2,685 | 2,685 | ||||
2021 Plan | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring (benefit) costs | 0 | 875 | 18 | 1,414 | ||
Cumulative amount incurred to date | 1,684 | 1,684 | ||||
Restructuring reserve | 0 | (93) | 0 | (93) | (25) | 0 |
Cash payments | 43 | 1,321 | ||||
2021 Plan | Severance | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring (benefit) costs | (26) | 546 | ||||
2021 Plan | Closure Costs | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring (benefit) costs | 44 | 868 | ||||
2021 Plan | North American Residential | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring (benefit) costs | 0 | 0 | 0 | 0 | ||
Cumulative amount incurred to date | 0 | 0 | ||||
2021 Plan | Europe | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Cumulative amount incurred to date | 0 | 0 | ||||
2021 Plan | Architectural | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring (benefit) costs | 0 | 875 | 18 | 1,414 | ||
Cumulative amount incurred to date | 1,684 | 1,684 | ||||
2021 Plan | Corporate & Other | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring (benefit) costs | 0 | 0 | 0 | 0 | ||
Cumulative amount incurred to date | 0 | 0 | ||||
2020 Plan | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring (benefit) costs | 23 | 443 | 69 | 3,477 | ||
Cumulative amount incurred to date | 5,376 | 5,376 | ||||
Restructuring reserve | (1) | (24) | (1) | (24) | (22) | (1,492) |
Cash payments | 92 | 4,945 | ||||
2020 Plan | Severance | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring (benefit) costs | (35) | 264 | ||||
2020 Plan | Closure Costs | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring (benefit) costs | 104 | 3,213 | ||||
2020 Plan | North American Residential | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring (benefit) costs | 0 | 4 | 0 | 23 | ||
Cumulative amount incurred to date | 52 | 52 | ||||
2020 Plan | Europe | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Cumulative amount incurred to date | 0 | 0 | ||||
2020 Plan | Architectural | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring (benefit) costs | 23 | 439 | 53 | 3,454 | ||
Cumulative amount incurred to date | 5,285 | 5,285 | ||||
2020 Plan | Corporate & Other | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring (benefit) costs | 0 | 0 | 16 | 0 | ||
Cumulative amount incurred to date | 39 | 39 | ||||
2019 Plan | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring (benefit) costs | (164) | (7) | (308) | 255 | ||
Cumulative amount incurred to date | 13,467 | 13,467 | ||||
Restructuring reserve | (1) | (90) | (1) | (90) | $ (2) | $ (291) |
Cash payments | 307 | 456 | ||||
2019 Plan | Severance | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring (benefit) costs | 15 | 175 | ||||
2019 Plan | Closure Costs | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring (benefit) costs | (323) | 80 | ||||
2019 Plan | North American Residential | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring (benefit) costs | (178) | (40) | (359) | (68) | ||
Cumulative amount incurred to date | 8,791 | 8,791 | ||||
2019 Plan | Europe | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Cumulative amount incurred to date | 359 | 359 | ||||
2019 Plan | Architectural | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring (benefit) costs | 0 | 0 | 0 | 0 | ||
Cumulative amount incurred to date | 1,671 | 1,671 | ||||
2019 Plan | Corporate & Other | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring (benefit) costs | 14 | $ 33 | 51 | $ 323 | ||
Cumulative amount incurred to date | $ 2,646 | $ 2,646 |
Asset Impairment (Details)
Asset Impairment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2022 | Oct. 03, 2021 | Oct. 02, 2022 | Oct. 03, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Asset impairment | $ 0 | $ 0 | $ 0 | $ 10,374 |
Architectural and Corporate & Other | Carrying Value | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Book value of asset group | $ 16,700 | 16,700 | ||
Level 3 | Architectural and Corporate & Other | ||||
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 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Oct. 03, 2021 | Oct. 02, 2022 | Oct. 03, 2021 | |
Income Tax Disclosure [Abstract] | |||
Canadian federal statutory rate | 26.50% | ||
Income tax benefit due to the exercise and delivery of share-based awards | $ 0.4 | $ 1.1 | $ 2.7 |
Earnings Per Share (Schedule of
Earnings Per Share (Schedule of Earnings Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2022 | Oct. 03, 2021 | Oct. 02, 2022 | Oct. 03, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Net income attributable to Masonite | $ 57,037 | $ 37,691 | $ 183,134 | $ 119,718 |
Shares used in computing basic earnings per share | 22,267,684 | 24,068,744 | 22,624,830 | 24,329,647 |
Effect of dilutive securities: | ||||
Incremental shares issuable under share compensation plans | 224,190 | 357,649 | 248,197 | 389,971 |
Shares used in computing diluted earnings per share | 22,491,874 | 24,426,393 | 22,873,027 | 24,719,618 |
Basic earnings per common share attributable to Masonite (in dollars per share) | $ 2.56 | $ 1.57 | $ 8.09 | $ 4.92 |
Diluted earnings per common share attributable to Masonite (in dollars per share) | $ 2.54 | $ 1.54 | $ 8.01 | $ 4.84 |
Stock Appreciation Rights (SARs) | ||||
Effect of dilutive securities: | ||||
Anti-dilutive instruments excluded from diluted earnings per common share (in shares) | 212,197 | 31,530 | 223,660 | 31,530 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2022 USD ($) authorization shares | Jul. 03, 2022 shares | Oct. 02, 2022 USD ($) authorization $ / shares shares | Feb. 21, 2022 shares | |
Equity, Class of Treasury Stock [Line Items] | ||||
Number of share repurchase authorizations | authorization | 5 | 5 | ||
Number of shares authorized to be repurchased (in shares) | shares | 200,000,000 | |||
Accelerated Share Repurchase | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Stock repurchase program, authorized amount | $ | $ 100,000,000 | $ 100,000,000 | ||
Share repurchases, settlement (payment) | $ | $ 100,000,000 | $ 100,000,000 | ||
Treasury stock, acquired (in shares) | shares | 319,678 | 848,087 | 1,167,765 | |
Treasury stock, acquired (in dollars per share) | $ / shares | $ 85.63 |
Segment Information (Geographic
Segment Information (Geographic Segments Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2022 | Oct. 03, 2021 | Oct. 02, 2022 | Oct. 03, 2021 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | $ 727,626 | $ 652,208 | $ 2,215,717 | $ 1,960,955 |
Adjusted EBITDA | 111,922 | 104,761 | 354,799 | 317,350 |
Operating Segments | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | 733,030 | 658,992 | 2,232,522 | 1,978,618 |
Intersegment Eliminations | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | (5,404) | (6,784) | (16,805) | (17,663) |
North American Residential | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | 579,440 | 488,520 | 1,755,780 | 1,458,373 |
Adjusted EBITDA | 115,092 | 91,482 | 367,733 | 286,009 |
North American Residential | Operating Segments | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | 579,908 | 489,156 | 1,757,820 | 1,460,358 |
North American Residential | Intersegment Eliminations | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | (468) | (636) | (2,040) | (1,985) |
Europe | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | 65,718 | 84,398 | 220,039 | 260,747 |
Adjusted EBITDA | 3,898 | 16,680 | 24,307 | 50,019 |
Europe | Operating Segments | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | 66,109 | 86,280 | 222,120 | 266,665 |
Europe | Intersegment Eliminations | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | (391) | (1,882) | (2,081) | (5,918) |
Architectural | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | 77,843 | 75,260 | 224,257 | 226,074 |
Adjusted EBITDA | (219) | 1,040 | (3,039) | 3,514 |
Architectural | Operating Segments | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | 82,388 | 79,526 | 236,941 | 235,834 |
Architectural | Intersegment Eliminations | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | (4,545) | (4,266) | (12,684) | (9,760) |
Corporate & Other | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | 4,625 | 4,030 | 15,641 | 15,761 |
Adjusted EBITDA | (6,849) | (4,441) | (34,202) | (22,192) |
Corporate & Other | Operating Segments | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | 4,625 | 4,030 | 15,641 | 15,761 |
Corporate & Other | Intersegment Eliminations | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | $ 0 | $ 0 | $ 0 | $ 0 |
Segment Information (Reconcilia
Segment Information (Reconciliation of Consolidated Adjusted EBITDA to Net Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jun. 14, 2021 | Oct. 02, 2022 | Oct. 03, 2021 | Oct. 02, 2022 | Oct. 03, 2021 | |
Segment Reporting [Abstract] | |||||
Net income attributable to Masonite | $ 57,037 | $ 37,691 | $ 183,134 | $ 119,718 | |
Depreciation | 17,461 | 17,365 | 51,977 | 52,876 | |
Amortization | 4,256 | 5,423 | 13,164 | 16,749 | |
Share based compensation expense | 5,556 | 2,336 | 16,251 | 11,460 | |
Loss (gain) on disposal of property, plant and equipment | 155 | 2,164 | (1,245) | 1,954 | |
Restructuring (benefit) costs | (141) | 1,311 | (221) | 5,146 | |
Asset impairment | 0 | 0 | 0 | 10,374 | |
Loss on disposal of subsidiaries | $ 8,600 | 0 | 0 | 0 | 8,590 |
Interest expense, net | 10,266 | 11,349 | 31,098 | 35,213 | |
Other (income) expense, net | 211 | (1,471) | (1,604) | (4,400) | |
Loss on extinguishment of debt | 0 | (13,583) | 0 | (13,583) | |
Income tax expense | 16,376 | 13,854 | 59,502 | 42,713 | |
Net income attributable to non-controlling interest | 745 | 1,156 | 2,743 | 3,374 | |
Adjusted EBITDA | $ 111,922 | $ 104,761 | $ 354,799 | $ 317,350 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss and Other Comprehensive (Loss) Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 02, 2022 | Oct. 03, 2021 | Oct. 02, 2022 | Oct. 03, 2021 | Jan. 02, 2022 | |
Accumulated Foreign Currency Translation Gains (Losses) [Roll Forward] | |||||
Accumulated foreign currency translation gains (losses), beginning of period | $ (128,070) | $ (85,664) | $ (96,919) | $ (93,684) | |
Foreign currency translation loss | (29,021) | (9,164) | (59,518) | (4,441) | |
Income tax benefit (expense) on foreign currency translation gain (loss) | (45) | (15) | (58) | 7 | |
Cumulative translation adjustment recognized upon deconsolidation of subsidiary | 0 | 0 | 0 | 3,544 | |
Less: foreign currency translation gain (loss) attributable to non-controlling interest | (45) | (166) | 596 | 103 | |
Accumulated foreign currency translation gains (losses), end of period | (157,091) | (94,677) | (157,091) | (94,677) | |
Accumulated Amortization of Actuarial Net Losses [Roll Forward] | |||||
Accumulated pension and other post-retirement adjustments, beginning of period | (4,651) | (17,848) | (4,663) | (18,379) | |
Amortization of actuarial net losses | 6 | 334 | 18 | 1,000 | |
Income tax expense on amortization of actuarial net losses | 0 | 68 | 0 | (203) | |
Accumulated pension and other post-retirement adjustments | (4,645) | (17,582) | (4,645) | (17,582) | |
Accumulated other comprehensive loss | (161,736) | (112,259) | (161,736) | (112,259) | $ (101,582) |
Other comprehensive (loss) income, net of tax | (29,060) | (8,913) | (59,558) | (93) | |
Less: other comprehensive (loss) income attributable to non-controlling interest | (45) | (166) | 596 | 103 | |
Other comprehensive (loss) income attributable to Masonite | $ (29,015) | $ (8,747) | $ (60,154) | $ (196) |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Cash and Non-Cash Transactions) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 02, 2022 | Oct. 03, 2021 | |
Transactions involving cash: | ||
Interest paid | $ 40,650 | $ 42,472 |
Interest received | 1,032 | 182 |
Income taxes paid | 67,841 | 31,587 |
Income tax refunds | 1,576 | 406 |
Cash paid for operating lease liabilities | 24,526 | 22,100 |
Cash paid for finance lease liabilities | 1,005 | 989 |
Non-cash transactions from operating activities: | ||
Right-of-use assets acquired under operating leases | $ 4,694 | $ 49,040 |
Supplemental Cash Flow Inform_4
Supplemental Cash Flow Information (Cash, Cash Equivalents and Restricted Cash) (Details) - USD ($) $ in Thousands | Oct. 02, 2022 | Jan. 02, 2022 | Oct. 03, 2021 | Jan. 03, 2021 |
Supplemental Cash Flow Elements [Abstract] | ||||
Cash and cash equivalents | $ 250,705 | $ 381,395 | ||
Restricted cash | 11,999 | 10,110 | ||
Total cash, cash equivalents and restricted cash | $ 262,704 | $ 391,505 | $ 403,976 | $ 375,234 |
Supplemental Cash Flow Inform_5
Supplemental Cash Flow Information (Narrative) (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Oct. 02, 2022 | Jan. 02, 2022 | |
Cash and Cash Equivalents [Abstract] | ||
Property, plant and equipment, additions | $ 12.2 | $ 10.7 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details) - Senior Notes - USD ($) $ in Thousands | Oct. 02, 2022 | Jan. 02, 2022 | Jul. 26, 2021 | Jul. 25, 2019 |
Senior Notes 2030 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Interest rate stated percentage | 3.50% | |||
Senior Notes 2030 | Fair Value | Fair Value, Inputs, Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Estimated fair value of senior notes | $ 289,380 | $ 373,238 | ||
Senior Notes 2030 | Carrying Value | Fair Value, Inputs, Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Estimated fair value of senior notes | 370,999 | 370,593 | ||
Senior Notes Due 2028 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Interest rate stated percentage | 5.375% | |||
Senior Notes Due 2028 | Fair Value | Fair Value, Inputs, Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Estimated fair value of senior notes | 441,075 | 526,730 | ||
Senior Notes Due 2028 | Carrying Value | Fair Value, Inputs, Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Estimated fair value of senior notes | $ 495,700 | $ 495,128 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | Nov. 02, 2022 | Oct. 28, 2022 | Nov. 07, 2022 | Oct. 02, 2022 |
Intercraft | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Cash consideration | $ 375,000,000 | |||
Revolving Credit Facility | ABL Facility 2024 | ||||
Subsequent Event [Line Items] | ||||
Revolving credit facility availability | $ 250,000,000 | |||
Revolving Credit Facility | ABL Facility 2024 | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Line of credit facility, increase (decrease), net | $ 100,000,000 | |||
Revolving credit facility availability | $ 350,000,000 | $ 350,000,000 | ||
Revolving credit facilities | $ 0 |