Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 27, 2024 | Jul. 02, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-11796 | ||
Entity Registrant Name | Masonite International Corporation | ||
Entity Incorporation, State or Country Code | Z4 | ||
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 Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 2.2 | ||
Entity Bankruptcy Proceedings, Reporting Current | true | ||
Entity Common Stock, Shares Outstanding | 21,932,452 | ||
Documents Incorporated by Reference | Portions of the registrant’s definitive Proxy Statement for its 2024 Annual General Meeting of Shareholders ("2024 Proxy Statement") are incorporated by reference into Part III, Items 10-14 of this Annual Report on Form 10-K. The 2024 Proxy Statement or an amendment to this Form 10-K ("Form 10-K Amendment") will be filed with the Securities and Exchange Commission not later than 120 days after December 31, 2023. | ||
Entity Central Index Key | 0000893691 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Firm ID | 42 |
Auditor Name | Ernst & Young LLP |
Auditor Location | Tampa, Florida |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Statement of Comprehensive Income [Abstract] | |||
Net sales | $ 2,830,695,000 | $ 2,891,687,000 | $ 2,596,920,000 |
Cost of goods sold | 2,164,978,000 | 2,217,792,000 | 1,985,141,000 |
Gross profit | 665,717,000 | 673,895,000 | 611,779,000 |
Selling, general and administration expenses | 411,579,000 | 344,614,000 | 308,430,000 |
Restructuring costs | 10,130,000 | 1,904,000 | 5,567,000 |
Asset impairment | 33,063,000 | 0 | 69,900,000 |
Loss on disposal of subsidiaries | 0 | 850,000 | 8,590,000 |
Operating income | 210,945,000 | 326,527,000 | 219,292,000 |
Interest expense, net | 50,822,000 | 41,331,000 | 46,123,000 |
Loss on extinguishment of debt | 0 | 0 | 13,583,000 |
Other (income) expense, net | 2,087,000 | 5,001,000 | (15,620,000) |
Income before income tax expense | 162,210,000 | 290,197,000 | 143,966,000 |
Income tax expense | 40,941,000 | 71,753,000 | 44,772,000 |
Net income | 121,269,000 | 218,444,000 | 99,194,000 |
Less: net income attributable to non-controlling interests | 3,042,000 | 4,211,000 | 4,693,000 |
Net income attributable to Masonite | $ 118,227,000 | $ 214,233,000 | $ 94,501,000 |
Earnings (loss) per common share attributable to Masonite: | |||
Basic earnings per common share attributable to Masonite (in dollars per share) | $ 5.37 | $ 9.51 | $ 3.91 |
Diluted earnings per common share attributable to Masonite (in dollars per share) | $ 5.29 | $ 9.41 | $ 3.85 |
Other comprehensive income (loss): | |||
Net income | $ 121,269,000 | $ 218,444,000 | $ 99,194,000 |
Foreign currency translation gain (loss) | 19,148,000 | (35,637,000) | (3,175,000) |
Pension and other post-retirement adjustment | 447,000 | (4,718,000) | 2,250,000 |
Pension settlement charges | 0 | 0 | 15,654,000 |
Amortization of actuarial net losses | 805,000 | 22,000 | 1,336,000 |
Income tax expense related to other comprehensive income (loss) | 1,811,000 | (846,000) | (5,518,000) |
Other comprehensive income (loss), net of tax: | 22,211,000 | (41,179,000) | 10,547,000 |
Comprehensive income | 143,480,000 | 177,265,000 | 109,741,000 |
Less: comprehensive income attributable to non-controlling interests | 3,221,000 | 3,674,000 | 4,759,000 |
Comprehensive income attributable to Masonite | $ 140,259,000 | $ 173,591,000 | $ 104,982,000 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2023 | Jan. 01, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 137,414 | $ 296,922 |
Restricted cash | 11,926 | 11,999 |
Accounts receivable, net | 326,224 | 375,918 |
Inventories, net | 391,199 | 406,828 |
Prepaid expenses and other assets | 60,092 | 55,051 |
Income taxes receivable | 26,544 | 16,922 |
Total current assets | 953,399 | 1,163,640 |
Property, plant and equipment, net | 747,970 | 652,329 |
Operating lease right-of-use assets | 202,806 | 160,695 |
Investment in equity investees | 20,378 | 16,111 |
Goodwill | 294,710 | 69,868 |
Intangible assets, net | 402,941 | 136,056 |
Deferred income taxes | 26,658 | 16,133 |
Other assets | 36,517 | 33,346 |
Total assets | 2,685,379 | 2,248,178 |
Current liabilities: | ||
Accounts payable | 113,208 | 111,526 |
Accrued expenses | 240,476 | 223,046 |
Income taxes payable | 3,400 | 14,361 |
Current portion of long-term debt | 37,500 | 0 |
Total current liabilities | 394,584 | 348,933 |
Long-term debt | 1,049,384 | 866,116 |
Long-term operating lease liabilities | 186,647 | 151,242 |
Deferred income taxes | 120,278 | 79,590 |
Other liabilities | 75,158 | 59,515 |
Total liabilities | 1,826,051 | 1,505,396 |
Commitments and Contingencies (Note 10) | ||
Equity: | ||
Share capital: unlimited shares authorized, no par value, 21,835,474 and 22,155,035 shares issued and outstanding as of December 31, 2023, and January 1, 2023, respectively | 525,232 | 520,003 |
Additional paid-in capital | 231,332 | 226,514 |
Retained earnings | 211,881 | 127,826 |
Accumulated other comprehensive loss | (120,192) | (142,224) |
Total equity attributable to Masonite | 848,253 | 732,119 |
Equity attributable to non-controlling interests | 11,075 | 10,663 |
Total equity | 859,328 | 742,782 |
Total liabilities and equity | $ 2,685,379 | $ 2,248,178 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - shares | Dec. 31, 2023 | Jan. 01, 2023 |
Statement of Financial Position [Abstract] | ||
Shares issued (in shares) | 21,835,474 | 22,155,035 |
Shares outstanding (in shares) | 21,835,474 | 22,155,035 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Total | Common Stock | Additional paid-in capital | Retained earnings (accumulated deficit) | Accumulated other comprehensive loss | Equity attributable to non-controlling interests |
Opening balance, value at Jan. 03, 2021 | $ 695,117 | $ 552,969 | $ 223,666 | $ 20,385 | $ (112,063) | $ 10,160 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Share based compensation expense | 15,959 | |||||
Common shares issued for delivery of share based awards | 12,125 | (12,125) | ||||
Common shares withheld to cover income taxes payable due to delivery of share based awards | (5,001) | |||||
Common shares issued under employee stock purchase plan | 1,593 | (322) | ||||
Net income | 99,194 | 94,501 | 4,693 | |||
Common shares repurchased and retired | (23,287) | (90,642) | ||||
Other comprehensive income (loss), net of tax | 10,547 | 10,481 | 66 | |||
Dividends to non-controlling interests | (3,380) | |||||
Ending balance, value at Jan. 02, 2022 | 699,778 | $ 543,400 | 222,177 | 24,244 | (101,582) | 11,539 |
Opening balance (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) | 199,865 | |||||
Common shares issued under employee stock purchase plan (in shares) | 15,091 | |||||
Common shares repurchased and retired (in shares) | (1,014,003) | |||||
Ending balance (in shares) at Jan. 02, 2022 | 23,623,887 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Share based compensation expense | 21,771 | |||||
Common shares issued for delivery of share based awards | $ 13,868 | (13,868) | ||||
Common shares withheld to cover income taxes payable due to delivery of share based awards | (3,359) | |||||
Common shares issued under employee stock purchase plan | 1,573 | (207) | ||||
Net income | 218,444 | 214,233 | 4,211 | |||
Common shares repurchased and retired | (38,838) | (110,651) | ||||
Other comprehensive income (loss), net of tax | (41,179) | (40,642) | (537) | |||
Dividends to non-controlling interests | (4,550) | |||||
Ending balance, value at Jan. 01, 2023 | $ 742,782 | $ 520,003 | 226,514 | 127,826 | (142,224) | 10,663 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common shares issued for delivery of share based awards (in shares) | 194,500 | |||||
Common shares issued under employee stock purchase plan (in shares) | 16,567 | |||||
Common shares repurchased and retired (in shares) | (1,679,919) | |||||
Ending balance (in shares) at Jan. 01, 2023 | 22,155,035 | 22,155,035 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Share based compensation expense | 23,638 | |||||
Common shares issued for delivery of share based awards | $ 15,962 | (15,962) | ||||
Common shares withheld to cover income taxes payable due to delivery of share based awards | (2,544) | |||||
Common shares issued under employee stock purchase plan | 1,654 | (314) | ||||
Net income | $ 121,269 | 118,227 | 3,042 | |||
Common shares repurchased and retired | (12,387) | (34,172) | ||||
Other comprehensive income (loss), net of tax | 22,211 | 22,032 | 179 | |||
Dividends to non-controlling interests | (2,809) | |||||
Ending balance, value at Dec. 31, 2023 | $ 859,328 | $ 525,232 | $ 231,332 | $ 211,881 | $ (120,192) | $ 11,075 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common shares issued for delivery of share based awards (in shares) | 180,494 | |||||
Common shares issued under employee stock purchase plan (in shares) | 17,470 | |||||
Common shares repurchased and retired (in shares) | (517,525) | |||||
Ending balance (in shares) at Dec. 31, 2023 | 21,835,474 | 21,835,474 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Cash flows from operating activities: | |||
Net income | $ 121,269 | $ 218,444 | $ 99,194 |
Adjustments to reconcile net income to net cash flow provided by operating activities: | |||
Loss on disposal of subsidiaries | 0 | 850 | 8,590 |
Loss on extinguishment of debt | 0 | 0 | 13,583 |
Depreciation | 91,145 | 71,168 | 70,641 |
Amortization | 32,976 | 17,127 | 21,341 |
Share based compensation expense | 23,638 | 21,771 | 15,959 |
Deferred income taxes | (11,978) | 6,024 | 4,881 |
Unrealized foreign exchange (gain) loss | (334) | 820 | (1,244) |
Share of income from equity investees, net of tax | (3,888) | (4,768) | (4,858) |
Dividend from equity investee | 3,150 | 4,500 | 4,500 |
Pension and post-retirement funding, net of expense | (1,943) | (2,342) | 15,448 |
Non-cash accruals and interest | 4,483 | (511) | 1,678 |
Loss (gain) on sale of property, plant and equipment | 4,434 | (378) | 1,316 |
Asset impairment | 33,063 | 0 | 69,900 |
Changes in assets and liabilities, net of acquisitions: | |||
Accounts receivable | 67,310 | (39,056) | (56,831) |
Inventories | 102,625 | (66,372) | (92,641) |
Prepaid expenses and other assets | (14,329) | 7,266 | (8,021) |
Accounts payable and accrued expenses | (23,459) | (33,302) | 1,473 |
Other assets and liabilities | (20,432) | (12,044) | (8,452) |
Net cash flow provided by operating activities | 407,730 | 189,197 | 156,457 |
Cash flows from investing activities: | |||
Additions to property, plant and equipment | (112,660) | (114,307) | (86,670) |
Acquisition of businesses, net of cash acquired | (626,802) | 0 | (160) |
Proceeds from sale of subsidiaries, net of cash disposed | 0 | (74) | 7,001 |
Proceeds from sale of property, plant and equipment | 67 | 6,413 | 6,027 |
Proceeds from repayment of note receivable | 12,000 | 0 | 0 |
Other investing activities | (6,437) | (3,130) | (2,340) |
Net cash flow used in investing activities | (733,832) | (111,098) | (76,142) |
Cash flows from financing activities: | |||
Proceeds from issuance of long-term debt | 250,000 | 0 | 375,000 |
Repayments of long-term debt | (28,125) | 0 | (300,945) |
Payment of debt extinguishment costs | 0 | 0 | (10,810) |
Payment of debt issuance costs | (3,628) | 0 | (4,672) |
Proceeds from borrowings on revolving credit facilities | 185,019 | 0 | 0 |
Repayments of borrowings on revolving credit facilities | (185,019) | 0 | 0 |
Tax withholding on share based awards | (2,544) | (3,359) | (5,001) |
Distributions to non-controlling interests | (2,809) | (4,550) | (3,380) |
Repurchases of common shares | (46,559) | (149,489) | (113,929) |
Net cash flow provided by (used in) financing activities | 166,335 | (157,398) | (63,737) |
Net foreign currency translation adjustment on cash | 186 | (3,285) | (307) |
(Decrease) increase in cash, cash equivalents and restricted cash | (159,581) | (82,584) | 16,271 |
Cash, cash equivalents and restricted cash, beginning of period | 308,921 | 391,505 | 375,234 |
Cash, cash equivalents and restricted cash, at end of period | $ 149,340 | $ 308,921 | $ 391,505 |
Business Overview and Significa
Business Overview and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Business Overview and Significant Accounting Policies | Business Overview and Significant Accounting Policies Unless we state otherwise or the context otherwise requires, references to "Masonite," "we," "our," "us" and the "Company" in these notes to the consolidated financial statements refer to Masonite International Corporation and its subsidiaries. Description of Business Masonite International Corporation is one of the largest manufacturers of doors in the world, with significant market share in both interior and exterior door products. Masonite operates 64 manufacturing locations in seven countries and sells doors to customers throughout the world, including the United States, Canada and the United Kingdom. Our workforce includes over 10,000 employees and contract personnel in seven different countries. This includes approximately 2,200 unionized employees, approximately 85% of whom are located in North America and with the remainder in various foreign locations. Nine of our North American facilities have individual collective bargaining agreements, which are negotiated locally and the terms of which vary by location. Basis of Presentation We prepare these consolidated financial statements in accordance with accounting principles generally accepted in the United States of America ("GAAP"). These consolidated financial statements include the accounts of Masonite International Corporation, a company incorporated under the laws of British Columbia, and its subsidiaries, as of December 31, 2023, and January 1, 2023, and for the years ended December 31, 2023, January 1, 2023, and January 2, 2022. Our fiscal year is the 52- or 53-week period ending on the Sunday closest to December 31. In a 52-week year, each fiscal quarter consists of 13 weeks. For ease of disclosure, the 13-week periods are referred to as three-month periods and the 52- or 53-week periods are referred to as years. Our 2020 fiscal year, which ended on January 3, 2021, contained 53 weeks of operating results, with the additional week occurring in the fourth quarter. Changes in Accounting Standards and Policies Adoption of Recent Accounting Pronouncements In December 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 was effective for annual periods beginning after December 15, 2021, with early adoption permitted. We have 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 or disclosures. In October 2021, the FASB issued ASU 2021-08, "Accounting for Contract Assets and Contract Liabilities from Contracts with Customers," which clarifies that an acquirer of a business should recognize and measure contract assets and contract liabilities in a business combination in accordance with ASU 2014-09," Revenue from Contracts with Customers" as if the entity had originated the contracts. The guidance was effective for fiscal years beginning after December 15, 2022, with early application permitted. We have adopted the new guidance as of January 2, 2023, the beginning of fiscal year 2023, and the adoption did not have a material impact on our financial statements or disclosures. Other Recent Accounting Pronouncements not yet Adopted In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740) - Improvements to Income Tax Disclosures," which requires public business entities to annually disclose specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. The guidance is effective for fiscal years beginning after December 15, 2024, with early application permitted. We did not early adopt and believe the adoption of this new guidance will not have a material impact on our financial statements. In November 2023, the FASB issued ASU 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures," which improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The guidance is effective for fiscal years beginning after December 15, 2023, with early application permitted. We did not early adopt and believe the adoption of this new guidance will not have a material impact on our financial statements. Summary of Significant Accounting Policies (a) Principles of consolidation: These consolidated financial statements include the accounts of Masonite and our subsidiaries and the accounts of any variable interest entities for which we are the primary beneficiary. Intercompany accounts and transactions have been eliminated upon consolidation. The results of subsidiaries acquired during the periods presented are consolidated from their respective dates of acquisition using the acquisition method. Subsidiaries are prospectively deconsolidated as of the date we no longer have effective control of the entity. (b) Translation of consolidated financial statements into U.S. dollars: These consolidated financial statements are expressed in U.S. dollars. The accounts of the majority of our self-sustaining foreign operations are maintained in functional currencies other than the U.S. dollar. Assets and liabilities for these subsidiaries have been translated into U.S. dollars at the exchange rates prevailing at the end of the period and results of operations at the average exchange rates for the period. Unrealized exchange gains and losses arising from the translation of the financial statements of our non-U.S. functional currency operations are accumulated in the cumulative translation adjustments account in accumulated other comprehensive loss. For our foreign subsidiaries where the U.S. dollar is the functional currency, all foreign currency-denominated accounts are remeasured into U.S. dollars. Unrealized exchange gains and losses arising from remeasurements of foreign currency-denominated assets and liabilities are included within other (income) expense, net in the consolidated statements of income and comprehensive income. Gains and losses arising from international intercompany transactions that are of a long-term investment nature are reported in the same manner as translation gains and losses. Realized exchange gains and losses are included in net income for the periods presented. (c) Cash and cash equivalents: Cash includes cash equivalents which are short-term highly liquid investments with original maturities of three months or less. (d) Restricted cash: Restricted cash includes cash we have placed as collateral for standby letters of credit. The letters of credit guarantee payment to third parties in the event the company is in breach of contract terms as detailed in each letter of credit. As of December 31, 2023, and January 1, 2023, we had standby letters of credit totaling $2.0 million and $2.1 million, respectively. There were no amounts drawn upon these letters of credit as of December 31, 2023, or January 1, 2023. (e) Accounts receivable: Our customers are primarily retailers, distributors and contractors. We record an allowance for credit losses at the time that accounts receivable are initially recorded based on the historical write-off experience and the current economic environment as well as our expectations of future economic conditions. We reassess the allowance at each reporting date. When it becomes apparent, based on age or customer circumstances, that such amounts will not be collected, they are charged to the allowance. Payments subsequently received are credited to the credit loss expense account included within selling, general and administration expenses in the consolidated statements of income and comprehensive income. Generally, we do not require collateral for our accounts receivable. (f) Inventories: Raw materials, work in process and finished goods are valued at the lower of cost or net realizable value. Cost is determined on a first in, first out basis. In determining the net realizable value, we consider factors such as yield, turnover, expected future demand and past experience. The cost of inventories includes all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition. The costs of conversion of inventories include costs directly related to the units of production, such as direct labor. They also include a systematic allocation of fixed and variable production overheads that are incurred in converting raw materials into finished goods. Fixed production overheads are those indirect costs of production that remain relatively constant regardless of the volume of production, such as depreciation and maintenance of factory buildings and equipment, and the cost of factory management and administration. Variable production overheads are those indirect costs of production that vary directly, or nearly directly, with the volume of production, such as indirect materials and indirect labor. To determine the cost of inventory, we allocate fixed expenses to the cost of production based on the normal capacity, which refers to a range of production levels and is considered the production expected to be achieved over a number of periods or seasons under normal circumstances, taking into account the loss of capacity resulting from planned maintenance. Fixed overhead costs allocated to each unit of production are not increased due to abnormally low production. Those excess costs are recognized as a current period expense. When a production facility is completely shut down temporarily, it is considered idle, and all related expenses are charged to cost of goods sold. (g) Property, plant and equipment: Property, plant and equipment are stated at cost. Depreciation is recorded based on the carrying values of buildings, machinery and equipment using the straight-line method over the estimated useful lives set forth as follows: Useful Life (Years) Buildings 20 - 40 Machinery and equipment Tooling 10 - 25 Machinery and equipment 5 - 25 Molds and dies 20 - 25 Office equipment, fixtures and fittings 3 - 10 Information technology systems 5 - 15 Improvements and major maintenance that extend the life of an asset are capitalized; other repairs and maintenance are expensed as incurred. When assets are retired or otherwise disposed, their carrying values and accumulated depreciation are removed from the accounts. Property, plant and equipment are tested for impairment when events or changes in circumstances indicate that the carrying value of an asset or asset group may not be recoverable. An impairment loss is recognized when the carrying amount of an asset or asset group being tested for recoverability exceeds the sum of the undiscounted cash flows expected from its use and disposal. Impairments are measured as the amount by which the carrying amount of the asset or asset group exceeds its fair value, as determined using a discounted cash flows approach when quoted market prices are not available. (h) Leases: We determine if a contract is a lease at inception or upon acquisition and reevaluate each time a lease contract is amended or otherwise modified. A lease will be classified as an operating lease if it does not meet any of the criteria for a finance lease. Those criteria include the transfer of ownership of the underlying asset by the end of the lease term; an option to purchase the underlying asset that we would be reasonably certain to exercise; the lease term is for the major part of the remaining economic life of the underlying asset; the present value of the sum of the lease payments and any residual value guaranteed by us that is not already reflected in the lease payments equals or exceeds substantially all of the fair value of the underlying asset or if the underlying asset is of such a specialized nature that it is expected to have no alternative use to the lessor at the end of the lease term. The assets and liabilities relating to operating leases are included in operating lease right-of-use assets, accrued expenses, and long-term operating lease liabilities in our consolidated balance sheets. The assets and liabilities relating to finance leases are included in property, plant and equipment, net, accrued expenses and other liabilities in our consolidated balance sheets. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the respective lease commencement date based on the present value of lease payments over the expected lease term. Since our leases do not specify implicit discount rates, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The operating lease ROU asset also includes any initial direct costs and is adjusted for lease incentives and prepaid or accrued rent. The lease term begins on the date when the lessor makes the underlying asset available for use to us, and our expected lease terms include options to extend the lease when it is reasonably certain that we will exercise those options. Lease payments are recognized in the consolidated statements of income and comprehensive income on a straight-line basis over the expected lease term. Leases with an initial term of 12 months or less are not recorded on the balance sheet, with the related lease expense recognized on a straight-line basis over the lease term. Lease and non-lease components of a contract are combined into a single lease component for accounting purposes. Our operating leases include leases for real estate (including manufacturing sites, warehouses and offices) and machinery and equipment and our finance leases include leases for real estate. We have no material subleases. Certain of our operating leases contain provisions for renewal ranging from one to four options of one (i) Goodwill: We use the acquisition method of accounting for all business combinations, and we evaluate all business combinations for intangible assets that should be recognized apart from goodwill. Goodwill adjustments are recorded for the effect on goodwill of changes to net assets acquired during the measurement period (up to one year from the date of acquisition) for new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date. Goodwill is not amortized, but instead is tested annually for impairment on the last day of fiscal November, or more frequently if events or changes in circumstances indicate the carrying amount may not be recoverable. The test for impairment is performed at the reporting unit level by comparing the reporting unit’s carrying amount to its fair value. Possible impairment in goodwill is first analyzed using qualitative factors such as macroeconomic and market conditions, changing costs and actual and projected performance, amongst others, to determine whether it is more likely than not that the book value of the reporting unit exceeds its fair value. If it is determined more likely than not that the book value exceeds fair value, a quantitative analysis is performed to test for impairment. When quantitative steps are determined necessary, the fair values of the reporting units are estimated through the use of discounted cash flow analysis and market multiples. If the carrying amount exceeds fair value, then goodwill is impaired. Any impairment in goodwill is measured as the excess of the carrying value of goodwill over the fair value. When developing our discounted cash flow analyses, a number of assumptions and estimates are involved to forecast operating cash flows, including future net sales growth, EBITDA margin, benefits from restructuring initiatives, income tax rates, capital spending, business initiatives and working capital changes. These assumptions may vary significantly among the reporting units. Operating cash flow forecasts are based on operating plans for the early years and historical relationships and long-term economic outlooks for our industry in later years. The discount rate is estimated for each specific reporting unit. Due to the many variables inherent in the estimation of a reporting unit’s fair value and the relative size of our recorded goodwill, differences in assumptions may have a material effect on the results of our impairment analyses. In the year ended December 31, 2023, we recorded $33.1 million in goodwill impairment charges in our Europe reporting unit. There were no impairment charges recorded against goodwill in 2022. In 2021, we recorded $59.5 million in impairment charges related to the Architectural reporting unit. See Note 14 for further information. (j) Intangible assets: Intangible assets with definite lives include customer relationships, patents, system software development and acquired trademarks and tradenames. Definite lived intangible assets are amortized over their estimated useful lives. Information pertaining to the estimated useful lives of intangible assets is as follows: Estimated Useful Life (Years) Estimated Useful Life Customer relationships 10 - 15 Over expected relationship period Patents 10 - 12 Over expected useful life System software development 5 - 15 Over expected useful life Acquired trademarks and tradenames 2 - 10 Over expected useful life Amortizable intangible assets are tested for impairment whenever events or changes in circumstances indicate that the carrying value may be greater than fair value. An impairment loss is recognized when the estimate of undiscounted future cash flows generated by such assets is less than the carrying amount. Measurement of the impairment loss is based on the fair value of the asset. Fair value is measured using discounted cash flows. Indefinite lived intangible assets are not amortized, but instead are tested for impairment annually on the last day of fiscal November, or more frequently if events or circumstances indicate the carrying value may exceed the fair value. (k) Income taxes: As a multinational corporation, we are subject to taxation in many jurisdictions and the calculation of our tax liabilities involves dealing with inherent uncertainties in the application of complex tax laws and regulations in various taxing jurisdictions. We assess the income tax positions and record tax liabilities for all years subject to examination based upon our evaluation of the facts, circumstances and information available as of the reporting date. Our global structure required an assessment of the Company’s interpretation and application of tax laws in multiple jurisdictions including the income tax impact of the legal entity ownership structure and intercompany transactions. We use the asset and liability method of accounting for income taxes. Under the asset and liability method, deferred tax assets and liabilities are recognized for the deferred tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities due to a change in tax rates is recognized in income in the period that includes the date of enactment. A valuation allowance is recorded to reduce deferred tax assets to an amount that is anticipated to be realized on a more likely than not basis. We account for uncertain taxes in accordance with ASC 740, "Income Taxes." The initial benefit recognition model follows a two-step approach. First, we evaluate if the tax position is more likely than not of being sustained if audited based solely on the technical merits of the position. Second, we measure the appropriate amount of benefit to recognize. This is calculated as the largest amount of tax benefit that has a greater than 50% likelihood of ultimately being realized upon settlement. Subsequently at each reporting date, the largest amount that has a greater than 50% likelihood of ultimately being realized, based on information available at that date, will be measured and recognized. We recognize interest and penalties related to unrecognized tax benefits within the income tax expense line in the consolidated statements of income and comprehensive income. Accrued interest and penalties are included within the related tax liability line in the consolidated balance sheets. (l) Employee future benefits: We maintain defined benefit pension plans. Benefits under the plans were frozen or curtailed at various times in the past. Earnings are charged with the cost of benefits earned by employees as services are rendered. The cost reflects management’s best estimates of the pension plans’ expected investment yields, wage and salary escalation, mortality of members, terminations and the ages at which members will retire. Changes in these assumptions could impact future pension expense. Service cost components are recognized within cost of goods sold and non-service cost components are recognized within other (income) expense, net in the consolidated statements of income and comprehensive income. The excess of the net actuarial gain (loss) over 10% of the greater of the benefit obligation or fair value of plan assets at the beginning of the year is amortized over the average remaining service lives of the members. Assets are valued at fair value for the purpose of calculating the expected return on plan assets. Past service costs arising from plan amendments are amortized on a straight-line basis over the average remaining service period of employees active at the date of amendment. When a restructuring of a benefit plan gives rise to both a curtailment and a settlement of obligations, the curtailment is accounted for prior to the settlement. Curtailment gains are offset against unrecognized losses and any excess gains and all curtailment losses are recorded in the period in which the curtailment occurs. (m) Restructuring costs: Restructuring costs include all salary-related severance benefits that are accrued and expensed when a restructuring plan has been put into place, the plan has received approval from the appropriate level of management and the benefit is probable and reasonably estimable. In addition to salary-related costs, we incur other restructuring costs when facilities are closed or capacity is realigned within the organization. Upon termination of a contract we record liabilities and expenses pursuant to the terms of the relevant agreement. For non-contractual restructuring activities, liabilities and expenses are measured and recorded at fair value in the period in which they are incurred. Restructuring-related costs are presented separately in the consolidated statements of income and comprehensive income whereas non-restructuring severance benefits are charged to cost of goods sold or selling, general and administration expense depending on the nature of the job responsibilities. (n) Financial instruments: We have applied a framework consistent with ASC 820, "Fair Value Measurement and Disclosure," and have disclosed all financial assets and liabilities measured at fair value and non-financial assets and liabilities measured at fair value on a non-recurring basis (at least annually). We classify and disclose assets and liabilities carried at fair value in one of the following three categories: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs that are not corroborated by market data. The estimated fair value of a financial instrument is the amount at which the instrument could be exchanged in a current transaction between willing parties, other than a forced or liquidation sale. These estimates, although based on the relevant market information about the financial instrument, are subjective in nature and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. (o) Share based compensation expense: We have a share based compensation plan, which is described in detail in Note 12. We apply the fair value method of accounting using comprehensive valuation models, including the Black-Scholes-Merton option pricing model and the Monte Carlo simulation method, to determine the compensation expense. (p) Revenue recognition: Revenue from the sale of products is recognized when control of the promised goods is transferred to our customers based on the agreed-upon shipping terms, in an amount that reflects the consideration to which we expect to be entitled in exchange for those goods or services. Volume rebates, expected returns, discounts and other incentives to customers are considered variable consideration and we estimate these amounts based on the expected amount to be provided to customers and reduce the revenues we recognize accordingly. Sales taxes and value added taxes assessed by governmental entities are excluded from the measurement of consideration expected to be received. Shipping and handling costs incurred after a customer has taken possession of our goods are treated as a fulfillment cost and are not considered a separate performance obligation. Shipping and other transportation costs charged to customers are recorded in both revenues and cost of goods sold in the consolidated statements of income and comprehensive income. (q) Product warranties: We warrant certain qualitative attributes of our door products. We have recorded provisions for estimated warranty and related costs within accrued expenses on the consolidated balance sheets, based on historical experience and we periodically adjust these provisions to reflect actual experience. The rollforward of our warranty provision is as follows for the periods indicated: Year Ended (In thousands) December 31, 2023 January 1, 2023 January 2, 2022 Balance at beginning of period $ 3,881 $ 4,015 $ 4,635 Additions charged to expense 4,792 5,085 4,646 Deductions (4,436) (5,219) (5,266) Balance at end of period $ 4,237 $ 3,881 $ 4,015 (r) Vendor rebates: We account for cash consideration received from a vendor as a reduction of cost of goods sold and inventory, in the consolidated statements of income and comprehensive income and consolidated balance sheets, respectively. The cash consideration received represents agreed-upon vendor rebates that are earned in the normal course of operations. (s) Advertising costs: We recognize advertising costs as they are incurred. Advertising costs incurred primarily relate to tradeshows and are included within selling, general and administration expense in the consolidated statements of income and comprehensive income. Advertising costs were $20.0 million, $16.9 million and $14.2 million in the years ended December 31, 2023, January 1, 2023, and January 2, 2022, respectively. (t) Research and development costs: We recognize research and development costs as they are incurred. Research and development costs incurred primarily relate to the development of new products and the improvement of manufacturing processes, and are primarily included within cost of goods sold in the consolidated statements of income and comprehensive income. These costs exclude the significant investments in other areas such as advanced automation. Research and development costs were $27.8 million, $21.2 million and $18.4 million in the years ended December 31, 2023, January 1, 2023, and January 2, 2022, respectively. (u) Insurance losses and proceeds: All involuntary conversions of property, plant and equipment are recorded as losses within loss (gain) on disposal of property, plant and equipment, which is included within selling, general and administration expense in the consolidated statements of income and comprehensive income and as reductions to property, plant and equipment in the consolidated balance sheets. Any subsequent proceeds received for insured losses of property, plant and equipment are also recorded as gains within loss (gain) on disposal of property, plant and equipment, and are classified as cash flows from investing activities in the consolidated statements of cash flows in the period in which the cash is received. Proceeds received for business interruption recoveries are recorded as a reduction to selling, general and administration expense in the consolidated statements of income and comprehensive income and are classified as cash flows from operating activities in the consolidated statements of cash flows in the period in which an acknowledgment from the insurance carrier of settlement or partial settlement of a non-refundable nature has been presented to us. (v) Equity investments: We account for investments in affiliates of between 20% and 50% ownership, over which we have significant influence, using the equity method. We record our share of earnings of the affiliate within other income, net of expense, in the consolidated statements of income and comprehensive income and dividends as a reduction of the investment in the affiliate in the consolidated balance sheets when declared. (w) Segment reporting: Our reportable segments are organized and managed principally by end market: North American Residential, Europe and Architectural. The Corporate & Other category includes unallocated corporate costs and the results of immaterial operating segments that were not aggregated into any reportable segment. In addition to similar economic characteristics we also consider the following factors in determining the reportable segments: the nature of business activities, the management structure directly accountable to our chief operating decision maker for operating and administrative activities, availability of discrete financial information and information presented to the Board of Directors and investors. (x) Use of estimates: The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions which affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of net sales and expenses during the reporting periods. During 2023, there were no material changes in the methods or policies used to establish estimates and assumptions. Actual results may differ from our estimates. |
Acquisitions and Divestitures
Acquisitions and Divestitures | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions and Divestitures | Acquisitions and Divestitures Acquisitions Fleetwood On October 19, 2023, the Company completed the acquisition of all of the issued and outstanding limited liability company interests of Fleetwood Aluminum Products, LLC (“Fleetwood”). The total consideration for this acquisition amounted to approximately $279.1 million, inclusive of $26.2 million designated for potential purchase price adjustments and indemnification claims and which is currently held in an escrow account controlled by a third party. The total consideration was funded with a combination of cash on hand and borrowings under the ABL Facility. Fleetwood is a leading designer and manufacturer of premium, aluminum-framed glass door and window solutions for luxury homes. Their products include multi-slide and pocket glass patio doors, pivot and hinged glass entry doors and folding glass door wall systems, as well as accompanying premium window products. The acquisition aligns with the Doors That Do More TM strategy focused on bringing differentiated door systems to the residential market. The Company has accounted for the acquisition as a business combination and allocated the preliminary estimated purchase price to the estimated fair values of assets acquired and liabilities assumed utilizing various valuation methods including replacement cost, market values and the income approach. The Company has not yet completed its evaluation and determination of the value of certain assets acquired and liabilities assumed, primarily involving (i) certain historical information used in the final valuation of intangible assets, and (ii) the final assessment and valuation of inventory and deferred income taxes, which could impact goodwill during the measurement period. The $73.5 million excess purchase price over the fair value of tangible and intangible assets acquired was allocated to goodwill. Goodwill represents the estimated future economic benefits arising from other assets acquired that could not be individually identified and separately recognized, such as the delivery of luxury products, which supports our Doors That Do More TM strategy. This goodwill is deductible for tax purposes and relates to the North American Residential segment. The allocation of the purchase price to assets acquired and liabilities assumed is as follows: (In thousands) Initial Purchase Price Allocation Cash acquired $ 5,169 Accounts receivable, net 5,584 Inventories, net 39,248 Prepaid expenses and other 957 Property, plant and equipment, net 8,072 Right-of-use asset 16,009 Intangible assets 163,900 Total assets acquired 238,939 Accounts payable and accrued expenses (20,773) Operating lease liability (12,546) Total liabilities assumed (33,319) Goodwill 73,464 Total purchase price $ 279,084 The fair values of intangible assets acquired are based on management's estimates and assumptions including the income approach, the cost approach and the market approach. Customer relationships and patents acquired are not expected to have any residual value. The gross contractual value of acquired trade receivables was $5.6 million. Endura On January 3, 2023, we completed the acquisition of 100% of the outstanding equity of EPI Holdings, Inc. ("Endura"), for total consideration of approximately $403.3 million, including an $18.0 million holdback which is payable 24 months after the acquisition date and was recorded in the consolidated balance sheets as a component of other liabilities. The total consideration was funded with borrowings under our Term Loan Facility and ABL Facility. Endura is a leading innovator and manufacturer of high-performance door frames and door system components in the United States. Endura’s product offerings include engineered frames, self-adjusting sill systems, weather sealing, multi-point locks and installation accessories used by builders and contractors in residential new construction as well as repair and remodeling applications. The acquisition is intended to accelerate our Doors That Do More TM strategy and maximize our growth potential. The $181.2 million excess purchase price over the fair value of tangible and intangible assets acquired was allocated to goodwill. The goodwill principally represents anticipated synergies to be gained from the integration into our existing business and acquisition of the assembled workforce. This goodwill is not deductible for tax purposes and relates to the North American Residential segment. The Company has accounted for the acquisition as a business combination and allocated the estimated purchase price to the estimated fair values of assets acquired and liabilities assumed utilizing various valuation methods including replacement cost, market values and the income approach. The allocation of the purchase price to assets acquired and liabilities assumed is as follows: (In thousands) Initial Purchase Price Allocation Measurement Period Adjustments Purchase Price Allocation Cash acquired $ 32,501 $ (100) $ 32,401 Accounts receivable, net 7,871 290 8,161 Inventories, net 44,183 35 44,218 Property, plant and equipment, net 54,373 10,520 64,893 Intangible assets 135,800 (7,400) 128,400 Other assets and liabilities, net 2,868 (38) 2,830 Total assets acquired 277,596 3,307 280,903 Accounts payable and accrued expenses (15,088) (190) (15,278) Deferred income taxes (44,345) 849 (43,496) Total liabilities assumed (59,433) 659 (58,774) Goodwill 189,938 (8,780) 181,158 Total purchase price $ 408,101 $ (4,814) $ 403,287 The fair values of intangible assets acquired are based on management's estimates and assumptions including the income approach, the cost approach and the market approach. The intangible assets acquired are not expected to have any residual value. The gross contractual value of acquired trade receivables was $8.3 million. Intangible assets acquired from the 2023 acquisitions consist of the following: (In thousands, except useful life amounts) Endura Expected Useful Life (Years) Fleetwood Expected Useful Life (Years) Customer relationships $ 108,600 15 $ 112,100 12 Trademarks and trade names 6,600 10 25,200 Indefinite Patents 13,200 12 22,600 10 Backlog — 4,000 1 Total intangible assets acquired $ 128,400 $ 163,900 The following schedule represents the amounts of net sales and net income (loss) attributable to Masonite from the 2023 acquisitions which have been included in the consolidated statements of income and comprehensive income for the periods indicated subsequent to the acquisition date. Year Ended December 31, 2023 (In thousands) Endura Fleetwood Total 2023 Acquisitions Net sales $ 231,347 $ 16,714 $ 248,061 Net (loss) income attributable to Masonite 11,897 (276) 11,621 Pro Forma Information The following unaudited pro forma financial information represents the consolidated financial information as if the acquisitions had been included in our consolidated results beginning on the first day of the fiscal year prior to the respective acquisition dates. The pro forma results have been calculated after adjusting the results of the acquired entities to remove intercompany transactions and to reflect the additional depreciation, amortization and interest expense that would have been charged assuming the fair value adjustments to property, plant and equipment and intangible assets and the additional debt incurred to fund the acquisition had been applied on the first day of the fiscal year prior to the respective acquisition date, together with the consequential tax effects. The pro forma results do not reflect any cost savings, operating synergies or revenue enhancements that the combined companies may achieve as a result of the acquisition; the costs to combine the companies' operations; or the costs necessary to achieve these costs savings, operating synergies and revenue enhancements. As a result, the pro forma information below does not purport to represent actual results had the acquisition been consummated on the date indicated and it is not necessarily indicative of future results of operations. Year Ended (In thousands, except per share information) December 31, 2023 January 1, 2023 Net sales $ 2,997,450 $ 3,313,374 Net income attributable to Masonite 156,207 215,776 Basic earnings per common share attributable to Masonite $ 7.09 $ 9.58 Diluted earnings per common share attributable to Masonite $ 6.99 $ 9.48 Divestitures As previously disclosed, we are actively reviewing strategic alternatives for our Architectural segment, including a potential sale of some or all of the business. There can be no assurance that a potential transaction will be consummated or on what terms. The Arrangement Agreement with Owens Corning restricts our ability to dispose of certain businesses, properties or assets of the Company without Owens Corning’s prior consent. If a transaction is consummated, depending on the sale price, we could incur an impairment charge related to the book value of the segment's assets. This charge could be material. During the fourth quarter of 2022, we completed the liquidation of our legal entity in Turkey. As a result, we recognized $0.9 million in loss on disposal of subsidiaries. The total charge consists of $0.7 million relating to the recognition of cumulative translation adjustment out of accumulated other comprehensive loss and $0.2 million relating to the write-off of net assets. |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
Accounts Receivable | Accounts Receivable Our customers consist mainly of retailers, distributors and contractors. Our ten largest customers accounted for 65.2% and 62.3% of total accounts receivable as of December 31, 2023, and January 1, 2023, respectively. Our largest customer, The Home Depot, Inc. accounted for more than 10% of the consolidated gross accounts receivable balance as of December 31, 2023, and January 1, 2023. In addition, Lowe's Companies, Inc. accounted for more than 10% of the consolidated gross accounts receivable balance as of December 31, 2023. No other individual customer accounted for greater than 10% of the consolidated gross accounts receivable balance at either December 31, 2023, or January 1, 2023. The changes in the allowance for doubtful accounts were as follows for the periods indicated: Year Ended (In thousands) December 31, 2023 January 1, 2023 January 2, 2022 Balance at beginning of period $ 2,480 $ 2,087 $ 2,809 Additions charged to expense 1,025 1,062 242 Deductions (428) (669) (964) Balance at end of period $ 3,077 $ 2,480 $ 2,087 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 AR Sales Program are accounted for as sales. Proceeds from the transfers reflect the face value of the accounts receivable less a discount. Receivables sold under the AR Sales Program are excluded from trade accounts receivable in the consolidated balance sheets and are included in cash flows from operating activities in the consolidated statements of cash flows. The discounts on the sales of trade accounts receivable sold under the AR Sales Program were not material for any of the periods presented and were recorded in selling, general and administration expense within the consolidated statements of income and comprehensive income. 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. Certain wood moldings and millwork products being imported into the U.S. are subject to import tariffs. Tariff deposits are paid to the government and are recoverable through an assessment process. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories The amounts of inventory on hand were as follows as of the dates indicated: (In thousands) December 31, 2023 January 1, 2023 Raw materials $ 296,747 $ 320,553 Finished goods 106,919 95,005 Provision for obsolete or aged inventory (12,467) (8,730) Inventories, net $ 391,199 $ 406,828 We carry an inventory provision which is the result of obsolete or aged inventory. The rollforward of our inventory provision is as follows for the periods indicated: Year Ended (In thousands) December 31, 2023 January 1, 2023 January 2, 2022 Balance at beginning of period $ 8,730 $ 6,117 $ 6,305 Additions charged to expense 8,044 7,692 3,402 Deductions (4,307) (5,079) (3,590) Balance at end of period $ 12,467 $ 8,730 $ 6,117 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment The carrying amounts of our property, plant and equipment and accumulated depreciation were as follows as of the dates indicated: (In thousands) December 31, 2023 January 1, 2023 Land $ 24,576 $ 21,415 Buildings 258,038 222,340 Machinery and equipment 961,180 837,407 Property, plant and equipment, gross 1,243,794 1,081,162 Accumulated depreciation (495,824) (428,833) Property, plant and equipment, net $ 747,970 $ 652,329 Total depreciation expense was $91.1 million, $71.2 million and $70.6 million for the years ended December 31, 2023, January 1, 2023, and January 2, 2022, respectively. Depreciation expense is included primarily within cost of goods sold in the consolidated statements of income and comprehensive income. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leases | Leases The following table summarizes the components of lease expense recorded in the consolidated statements of income and comprehensive income for the periods indicated: (In thousands) Year Ended December 31, 2023 January 1, 2023 January 2, 2022 Operating lease expense $ 62,291 $ 49,972 $ 47,263 Finance lease expense Amortization of leased assets 953 1,123 865 Interest on lease liabilities 1,414 1,356 1,443 Total lease expense $ 64,658 $ 52,451 $ 49,571 The following table includes a detail of lease assets and liabilities included in the consolidated balance sheet as of the period indicated: (In thousands) December 31, 2023 January 1, 2023 Operating lease right-of-use assets $ 202,806 $ 160,695 Finance lease right-of-use assets (1) 24,447 25,409 Total lease assets, net $ 227,253 $ 186,104 Current portion of operating lease liabilities $ 32,299 $ 24,372 Long-term operating lease liabilities 186,647 151,242 Long-term finance lease liabilities 29,664 29,561 Total lease liabilities $ 248,610 $ 205,175 ____________ (1) Net of accumulated amortization of $4.5 million and $3.5 million, as of December 31, 2023 , and January 1, 2023 , respectively. The following table is a summary of the weighted-average remaining lease terms and weighted-average discount rates of the Company's leases as of the period indicated: December 31, 2023 January 1, 2023 Weighted-average remaining lease term (years) Operating leases 10.5 11.2 Finance leases 25.6 26.6 Weighted-average discount rate (1) Operating leases 4.9 % 4.3 % Finance leases 4.8 % 4.8 % ____________ (1) Based on the Company's incremental borrowing rate at lease commencement or modification. As of December 31, 2023, the future minimum lease payments under non-cancelable leases are as follows: (In thousands) Operating Leases Finance Leases Fiscal year: 2024 $ 39,848 $ 1,471 2025 37,365 1,516 2026 30,798 1,693 2027 26,025 1,612 2028 23,253 1,520 Thereafter 128,883 47,607 Total minimum lease payments 286,172 55,419 Less imputed interest (67,226) (25,755) Present value of future lease payments $ 218,946 $ 29,664 |
Leases | Leases The following table summarizes the components of lease expense recorded in the consolidated statements of income and comprehensive income for the periods indicated: (In thousands) Year Ended December 31, 2023 January 1, 2023 January 2, 2022 Operating lease expense $ 62,291 $ 49,972 $ 47,263 Finance lease expense Amortization of leased assets 953 1,123 865 Interest on lease liabilities 1,414 1,356 1,443 Total lease expense $ 64,658 $ 52,451 $ 49,571 The following table includes a detail of lease assets and liabilities included in the consolidated balance sheet as of the period indicated: (In thousands) December 31, 2023 January 1, 2023 Operating lease right-of-use assets $ 202,806 $ 160,695 Finance lease right-of-use assets (1) 24,447 25,409 Total lease assets, net $ 227,253 $ 186,104 Current portion of operating lease liabilities $ 32,299 $ 24,372 Long-term operating lease liabilities 186,647 151,242 Long-term finance lease liabilities 29,664 29,561 Total lease liabilities $ 248,610 $ 205,175 ____________ (1) Net of accumulated amortization of $4.5 million and $3.5 million, as of December 31, 2023 , and January 1, 2023 , respectively. The following table is a summary of the weighted-average remaining lease terms and weighted-average discount rates of the Company's leases as of the period indicated: December 31, 2023 January 1, 2023 Weighted-average remaining lease term (years) Operating leases 10.5 11.2 Finance leases 25.6 26.6 Weighted-average discount rate (1) Operating leases 4.9 % 4.3 % Finance leases 4.8 % 4.8 % ____________ (1) Based on the Company's incremental borrowing rate at lease commencement or modification. As of December 31, 2023, the future minimum lease payments under non-cancelable leases are as follows: (In thousands) Operating Leases Finance Leases Fiscal year: 2024 $ 39,848 $ 1,471 2025 37,365 1,516 2026 30,798 1,693 2027 26,025 1,612 2028 23,253 1,520 Thereafter 128,883 47,607 Total minimum lease payments 286,172 55,419 Less imputed interest (67,226) (25,755) Present value of future lease payments $ 218,946 $ 29,664 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Changes in the carrying amount of goodwill were as follows as of the dates indicated: (In thousands) North American Residential Europe Total January 2, 2022 $ 9,893 $ 67,209 $ 77,102 Foreign exchange fluctuations (19) (7,215) (7,234) January 1, 2023 9,874 59,994 69,868 Goodwill from 2023 acquisitions 254,622 — 254,622 Goodwill impairment — (33,212) (33,212) Foreign exchange fluctuations 8 3,424 3,432 December 31, 2023 $ 264,504 $ 30,206 $ 294,710 Within fiscal year 2023, the Company completed the acquisitions of Fleetwood and Endura. As part of these acquisitions, we recognized $254.6 million in combined goodwill. See Note 2. Acquisitions and Divestitures for further information. We evaluate goodwill and indefinite-lived intangible assets for impairment annually during the fourth quarter and at interim dates if indicators of impairment exist. Goodwill is assessed for impairment at the reporting unit level. Gross goodwill before cumulative impairment charges and foreign exchange fluctuations in the Europe reporting unit was $60.0 million as of the beginning of 2023. During the year ended December 31, 2023, we recognized an asset impairment charge of $33.2 million related to a goodwill impairment charge due to weakening consumer confidence in the United Kingdom that continues to affect demand in the repair and remodel market, negative impacts from rising energy and fuel costs, partly attributable to geopolitical conflicts, as well as rising costs for raw materials and material supply constraints. The charge represents the amount by which the carrying value of the Europe reporting unit exceeded its fair value, and was recorded in the consolidated statements of income and comprehensive income and reduced the goodwill balance in the Europe reporting unit from $60.0 million to $26.8 million, excluding foreign exchange fluctuations. See Note 14 for further information. Gross goodwill before cumulative impairment charges in the Architectural reporting unit was $59.5 million as of the beginning of 2021. As a result of manufacturing constraints in the Architectural reporting unit due to COVID-19 related absenteeism, material availability and production challenges, a goodwill impairment charge of $59.5 million was recorded to selling, general and administration expenses in 2021. The charge represents the amount by which the carrying value of the Architectural reporting unit exceeded its fair value and reduced the goodwill balance in the Architectural reporting unit from $59.5 million to zero. See Note 14 for further information. The cost and accumulated amortization values of our intangible assets were as follows as of the dates indicated: December 31, 2023 January 1, 2023 (In thousands) Cost Accumulated Amortization Net Book Value Cost Accumulated Amortization Net Book Value Definite life intangible assets: Customer relationships $ 391,646 $ (162,021) $ 229,625 $ 165,700 $ (135,518) $ 30,182 Patents 49,480 (32,304) 17,176 34,776 (29,665) 5,111 Software 61,190 (35,832) 25,358 37,187 (33,900) 3,287 Trademarks and tradenames 39,081 (20,340) 18,741 30,918 (15,827) 15,091 License Rights and Other 10,589 (2,241) 8,348 6,584 (84) 6,500 Total definite life intangible assets 551,986 (252,738) 299,248 275,165 (214,994) 60,171 Indefinite life intangible assets: Trademarks and tradenames 103,693 — 103,693 75,885 — 75,885 Total intangible assets $ 655,679 $ (252,738) $ 402,941 $ 351,050 $ (214,994) $ 136,056 Amortization of intangible assets was $31.4 million, $15.8 million and $20.2 million for the years ended December 31, 2023, January 1, 2023, and January 2, 2022 respectively. Amortization expense is classified within selling, general and administration expenses in the consolidated statements of income and comprehensive income. The estimated future amortization of intangible assets with definite lives as of December 31, 2023, is as follows: (In thousands) Fiscal year: 2024 $ 41,800 2025 38,941 2026 33,457 2027 31,823 2028 23,107 |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Dec. 31, 2023 | |
Accrued Expenses [Abstract] | |
Accrued Expenses | Accrued Expenses The details of our accrued expenses were as follows as of the dates indicated: (In thousands) December 31, 2023 January 1, 2023 Accrued payroll $ 81,004 $ 69,224 Accrued rebates 51,457 50,200 Current portion of operating lease liabilities 32,299 24,372 Accrued interest 18,296 16,480 Other accruals 57,420 62,770 Total accrued expenses $ 240,476 $ 223,046 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt (In thousands) December 31, 2023 January 1, 2023 Senior unsecured notes, interest rate of 3.50%, due 2030 $ 375,000 $ 375,000 Senior unsecured notes, interest rate of 5.375%, due 2028 500,000 500,000 Term Loan Facility, interest rate of SOFR plus 2.25%, due 2027 221,875 — Debt issuance costs (9,991) (8,884) Total debt (including current portion) 1,086,884 866,116 Less: debt due within one year (37,500) — Total long-term debt (excluding current portion) $ 1,049,384 $ 866,116 Interest expense related to our consolidated indebtedness under our senior unsecured notes, Term Loan Facility and ABL Facility was $55.7 million, $41.3 million and $43.9 million for years ended December 31, 2023, January 1, 2023, and January 2, 2022, respectively. Debt issuance costs incurred in connection with the 2030 Notes and the 2028 Notes were capitalized as a reduction to the carrying value of debt and are being accreted to interest expense over their respective terms. Additionally, we pay interest on any outstanding principal under our Term Loan Facility and ABL Facility, each as defined below, and we are required to pay a commitment fee for unutilized commitments under the ABL Facility, both of which are recorded in interest expense as incurred. 3.50% Senior Notes due 2030 On July 26, 2021, we issued $375.0 million aggregate principal senior unsecured notes (the "2030 Notes"). The 2030 Notes were issued in a private placement for resale to qualified institutional buyers pursuant to Rule 144A of the Securities Act of 1933, as amended (the "Securities Act"), and to buyers outside of the United States pursuant to Regulation S under the Securities Act. The 2030 Notes bear interest at 3.50% per annum, payable in cash semiannually in arrears on February 15 and August 15 of each year and the principal is due February 15, 2030. The 2030 Notes were issued at par. We received net proceeds of $370.3 million after deducting $4.7 million of debt issuance costs. The debt issuance costs were capitalized as a reduction to the carrying value of debt and are being accreted to interest expense over the term of the 2030 Notes using the effective interest method. The net proceeds from the issuance of the 2030 Notes were used to redeem the remaining $300.0 million aggregate principal amount of the 2026 Notes (as described below), including the payment of related premiums, fees and expenses, with the balance of the proceeds available for general corporate purposes. Obligations under the 2030 Notes are fully and unconditionally guaranteed, jointly and severally, on a senior unsecured basis, by certain of our directly or indirectly wholly-owned subsidiaries. We may redeem the 2030 Notes, in whole or in part, at any time, at the applicable redemption prices specified under the indenture governing the 2030 Notes, plus accrued and unpaid interest, if any, to the date of redemption. If we experience certain changes of control, we must offer to repurchase all of the 2030 Notes at a purchase price of 101.00% of their principal amount, plus accrued and unpaid interest, if any, to, but excluding, the repurchase date. The indenture governing the 2030 Notes contains limited covenants that, among other things, limit our ability and the ability of our subsidiaries to (i) incur certain secured debt, (ii) engage in certain sale and leaseback transactions and (iii) merge or consolidate with other entities. The foregoing limitations are subject to exceptions as set forth in the indenture governing the 2030 Notes. The indenture governing the 2030 Notes contains customary events of default (subject to certain cases to customary grace and cure periods). As of December 31, 2023, we were in compliance with all covenants under the indenture governing the 2030 Notes. 5.375% Senior Notes due 2028 On July 25, 2019, we issued $500.0 million aggregate principal senior unsecured notes (the "2028 Notes"). The 2028 Notes were issued in a private placement for resale to qualified institutional buyers pursuant to Rule 144A under the Securities Act, and to buyers outside of the United States pursuant to Regulation S under the Securities Act. The 2028 Notes were issued without registration rights and are not listed on any securities exchange. The 2028 Notes bear interest at 5.375% per annum, payable in cash semiannually in arrears on February 1 and August 1 of each year and the principal is due February 1, 2028. The 2028 notes were issued at par. We received net proceeds of $493.3 million after deducting $6.7 million of debt issuance costs. The debt issuance costs were capitalized as a reduction to the carrying value of debt and are being accreted to interest expense over the term of the 2028 Notes using the effective interest method. The net proceeds from issuance of the 2028 Notes, together with available cash balances, were used to redeem the remaining $500.0 million aggregate principal amount of similar senior unsecured notes. Obligations under the 2028 Notes are fully and unconditionally guaranteed, jointly and severally, on a senior unsecured basis, by certain of our directly or indirectly wholly-owned subsidiaries. We may redeem the 2028 Notes, in whole or in part, at any time on or after February 1, 2023, at the applicable redemption prices specified under the indenture governing the 2028 Notes, plus accrued and unpaid interest, if any, to the date of redemption. If we experience certain changes of control or consummate certain asset sales and do not reinvest the net proceeds, we must offer to repurchase all of the 2028 Notes at a purchase price of 101.00% (in the case of changes in control) or 100.00% (in the case of asset sales) of their principal amount, plus accrued and unpaid interest, if any, to, but excluding, the repurchase date. The indenture governing the 2028 Notes contains restrictive covenants that, among other things, limit our ability and the ability of our subsidiaries to: (i) incur additional debt and issue disqualified or preferred stock, (ii) make restricted payments, (iii) sell assets, (iv) create or permit restrictions on the ability of our restricted subsidiaries to pay dividends or make other distributions to the parent company, (v) create or incur certain liens, (vi) enter into sale and leaseback transactions, (vii) merge or consolidate with other entities and (viii) enter into transactions with affiliates. The foregoing limitations are subject to exceptions as set forth in the indenture governing the 2028 Notes. In addition, if in the future the 2028 Notes have an investment grade rating from at least two nationally recognized statistical rating organizations, certain of these covenants will be terminated. The indenture governing the 2028 Notes contains customary events of default (subject in certain cases to customary grace and cure periods). As of December 31, 2023, we were in compliance with all covenants under the indenture governing the 2028 Notes. 5.750% Senior Notes due 2026 On August 27, 2018, we issued $300.0 million aggregate principal senior unsecured notes (the "2026 Notes"). The 2026 Notes were issued in a private placement for resale to qualified institutional buyers pursuant to Rule 144A under the Securities Act, and to buyers outside of the United States pursuant to Regulation S under the Securities Act. The 2026 Notes were issued without registration rights and are not listed on any securities exchange. The 2026 Notes bore interest at 5.75% per annum, payable in cash semiannually in arrears on March 15 and September 15 of each year and were originally due September 15, 2026. The 2026 notes were issued at par. We received net proceeds of $295.7 million after deducting $4.3 million of debt issuance costs. The debt issuance costs were capitalized as a reduction to the carrying value of debt and were accreted to interest expense over the term of the 2026 Notes using the effective interest method. Subsequent to the closing of the 2030 Notes offering, the 2026 Notes were redeemed, and the notes were considered extinguished as of July 26, 2021. Under the terms of the indenture governing the 2026 Notes, we paid the applicable premium of $10.8 million. Additionally, the unamortized debt issuance costs of $2.8 million relating to the 2026 Notes were written off in conjunction with the extinguishment of the 2026 Notes. The resulting loss on extinguishment of debt was $13.6 million and was recorded as part of income from continuing operations before income tax expense in the condensed consolidated statements of income and comprehensive income in 2021. Additionally, the cash payment of interest accrued was accelerated to the redemption date. Term Loan Facility On December 13, 2022, we and certain of our subsidiaries entered into a new delayed-draw term loan credit agreement (the "Term Loan Credit Agreement") maturing on December 12, 2027 (the "Term Loan Maturity Date"). The Term Loan Credit Agreement provides for a senior secured five-year delayed-draw term loan facility of $250.0 million (the "Term Loan Facility"). Loans under the Term Loan Facility (the "Term Loans") will bear interest at a rate equal to, at our option, (1) the Adjusted Term SOFR Rate (as defined in the Term Loan Credit Agreement) plus an applicable margin of 2.25% or (2) an alternate base rate equal to the greatest of (i) the "Prime Rate" in the U.S. last quoted by The Wall Street Journal, (ii) 0.50% above the greater of the federal funds rate and the rate comprised of both overnight federal funds and overnight eurodollar transactions denominated in Dollars, (iii) 1.00% above the Adjusted Term SOFR Rate for a one month interest period and (iv) 1.00%, plus, in each case, an applicable margin of 1.25%, subject to, in each of cases (1) and (2), an agreed interest rate floor. The Term Loans are repayable in equal quarterly installments for an annual aggregate amortization payment equal to 15% of the aggregate principal amount of the Term Loans, with the balance of the principal being due on the Term Loan Maturity Date. The Term Loan Credit Agreement also includes a quarterly ticking fee of 25 basis points per annum payable to the lenders under the Term Loan Facility beginning on January 3, 2023 (the "Closing Date") in respect of the unutilized commitments thereunder. As a result of the incurrence of the Term Loans on the Closing Date such ticking fees were not (and shall not be) payable to the Lenders. Obligations under the Term Loan Credit Agreement are fully and unconditionally guaranteed, jointly and severally, by us and by certain of our directly or indirectly wholly-owned subsidiaries organized in the United States and are secured by the equity in, and substantially all the assets of, such subsidiaries. The Term Loans were funded in an amount of $250.0 million and applied to finance a portion of the consideration payable in connection with the consummation of the Endura acquisition on January 3, 2023. The Term Loan Credit Agreement contains restrictive covenants that, among other things, limit our ability and the ability of our subsidiaries to: (i) pay dividends on our common shares and make other restricted payments, (ii) make investments and acquisitions, (iii) engage in transactions with our affiliates, (iv) sell assets, (v) merge, (vi) incur additional debt and (vii) create liens. The Term Loan Credit Agreement includes certain exceptions and exemptions under the restricted payment, investment, dispositions, liens and indebtedness covenants. The Term Loan Credit Agreement requires us to maintain at all times a total leverage ratio of no more than 4.50:1.00. The Term Loan Credit Agreement contains change of control provisions and certain customary affirmative covenants and events of default. As of December 31, 2023, we were in compliance with all covenants under the credit agreement governing the Term Loan Facility and there were no amounts outstanding. 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. On October 28, 2022, we and certain of our subsidiaries entered into an amendment which, among other things, (i) increased the revolving credit commitments available thereunder by $100.0 million to an aggregate amount of $350.0 million and (ii) replaced the LIBOR-based interest rate applicable to borrowings thereunder in U.S. dollars with an interest rate based on the sum of (x) a "Term SOFR" rate published by the CME Group Benchmark Administration Limited (CBA) plus (y) 10 basis points ("Adjusted Term SOFR"). Additionally, on December 12, 2022, we entered into an amendment to the ABL Facility, which, among other things, extended the maturity of the ABL Facility from January 31, 2024 to December 12, 2027. The terms of the ABL Facility remained otherwise substantially unchanged. Obligations under the ABL Facility are secured by a first priority security interest in such accounts receivable, inventory and other related assets of Masonite and our subsidiaries. In addition, obligations under the ABL Facility are fully and unconditionally guaranteed, jointly and severally, on a senior secured basis, by certain of our directly or indirectly wholly-owned subsidiaries. Borrowings under the ABL Facility bear interest at a rate equal to, at our option, (i) the United States, Canadian or United Kingdom Base Rate (each as defined in the credit agreement relating to the ABL Facility, the "Amended and Restated Credit Agreement") plus a margin ranging from 0.25% to 0.50% per annum, or (ii) the Adjusted Term SOFR or BA Rate (each as defined in the Amended and Restated Credit Agreement), plus a margin ranging from 1.25% to 1.50% per annum. In addition to paying interest on any outstanding principal under the ABL Facility, a commitment fee is payable on the undrawn portion of the ABL Facility in an amount equal to 0.25% per annum of the average daily balance of unused commitments during each calendar quarter. The ABL Facility contains various customary representations, warranties and covenants by us that, among other things, and subject to certain exceptions, restrict Masonite's ability and the ability of our subsidiaries to: (i) pay dividends on our common shares and make other restricted payments, (ii) make investments and acquisitions, (iii) engage in transactions with our affiliates, (iv) sell assets, (v) merge and (vi) create liens. The ABL Facility, among other things, (i) permits us to incur unlimited unsecured debt as long as such debt does not contain covenants or default provisions that are more restrictive than those contained in the ABL Facility, (ii) permits us to incur debt as long as the pro forma secured leverage ratio is less than 4.5 to 1.0, and (iii) adds certain additional exceptions and exemptions under the restricted payment, investment and indebtedness covenants (including increasing the amount of certain debt permitted to be incurred under an existing exception). As of December 31, 2023, we were in compliance with all covenants under the credit agreement governing the ABL Facility. We had availability of $273.6 million under our ABL Facility and there were no amounts outstanding as of December 31, 2023. Debt Maturities The following table summarizes the stated debt maturities and scheduled amortization payments for all outstanding debt as of December 31, 2023: (In thousands) Scheduled Amortization Payments Fiscal year: 2024 $ 37,500 2025 37,500 2026 37,500 2027 109,375 2028 500,000 Thereafter 375,000 Total aggregated principal value $ 1,096,875 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies We may become involved from time-to-time in litigation and regulatory compliance matters incidental to our business, including employment and wage and hour claims, antitrust, tax, product liability, environmental, health and safety, commercial disputes, intellectual property, contracts and other matters arising out of the normal conduct of our business. Since litigation is inherently unpredictable and unfavorable resolutions can occur, assessing contingencies is highly subjective and requires judgments about future events. We regularly review and accrue for contingencies related to litigation and regulatory compliance matters, if it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Based on current information, in the opinion of management, the ultimate resolution of these matters, individually or in the aggregate, will not have a material adverse effect on our financial condition, results of operations or cash flows. Antitrust Class Action Proceedings - Canada On May 19, 2020, an intended class proceeding was commenced in the Province of Québec, Canada naming as defendants Masonite Corporation, Corporation Internationale Masonite, JELD-WEN, Inc., JELD-WEN Holding, Inc. and JELD-WEN of Canada, Ltd. The 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. 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. The plaintiff served its certification record on March 31, 2021. On November 3, 2023, the Company entered into a preliminary settlement agreement with the plaintiff class that would result in the resolution of all the plaintiffs’ underlying claims and lawsuits in exchange for a payment by the Company of approximately $0.9 million. As a result, for the year ended December 31, 2023, we paid approximately $0.9 million and recorded a charge in selling, general and administrative expense in the condensed consolidated statement of income and comprehensive income in connection with this matter. The preliminary settlement agreement is subject to court approval. A settlement approval hearing date has not yet been set. |
Revenues
Revenues | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues We derive our revenues primarily from the manufacture and delivery of doors and door components as performance obligations that arise from our contracts with customers are satisfied. Materially all of our revenues are generated from contracts with customers and the nature, timing and any uncertainty in the recognition of revenues are not affected by the type of good, customer or geographical region to which the performance obligation relates. Our contracts with our customers are generally in the form of purchase orders and the performance obligation arises upon receipt of the purchase order and agreement upon the transaction price. The performance obligations are satisfied at a point in time when control of the promised goods is transferred to the customer and payment terms vary from customer to customer. Payment terms are short-term, are customary for our industry and in some cases, early payment incentives are offered. The transaction price recognized as revenue and accounts receivable is determined based upon a number of estimates, including: • Incentive-based volume rebates, which are based on individual rebate agreements with our customers, as well as historical and expected performance of each individual customer, • Estimated sales returns, which are based on historical returns as a percentage of revenues, and • Adjustments for early payment discounts offered by us. Contract assets are represented by our trade accounts receivable balances on the consolidated balance sheets, and are described in Note 3. Accounts Receivable. There were no other material contract assets or liabilities as of December 31, 2023, or January 1, 2023. Our warranties are assurance-type warranties and do not represent separate performance obligations to our customers. There were no material impairment losses related to contract assets during the years ended December 31, 2023, January 1, 2023, or January 2, 2022. |
Share Based Compensation Plans
Share Based Compensation Plans | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Share Based Compensation Plans | Share Based Compensation Plans Share based compensation expense was $23.6 million, $21.8 million and $16.0 million for the years ended December 31, 2023, January 1, 2023, and January 2, 2022, respectively. As of December 31, 2023, the total remaining unrecognized compensation expense related to share based compensation amounted to $24.8 million, which will be amortized over the weighted average remaining requisite service period of 1.5 years. Share based compensation expense is recognized using a graded-method approach, or to a lesser extent a straight-line approach, depending on the terms of the individual award, and is classified within selling, general and administration expenses in the consolidated statements of income and comprehensive income. All forfeitures are accounted for as they occur. All share based awards are settled through issuance of new shares of our common stock. The share based award agreements contain restrictions on sale or transfer other than in limited circumstances. All other transfers would cause the share based awards to become null and void. Equity Incentive Plan On March 10, 2021, the Board of Directors adopted the Masonite International Corporation 2021 Omnibus Incentive Equity Plan (the "2021 Equity Plan"), which was approved by our shareholders at the Annual General Meeting of Shareholders on May 13, 2021. The 2021 Equity Plan is effective for ten years from the date of approval. The aggregate number of common shares that can be issued with respect to equity awards under the 2021 Equity Plan cannot exceed 880,000 shares; plus the number of shares reserved for the 2012 Plan that is in excess of the number of shares related to outstanding grants; plus the number of shares subject to existing grants under the 2012 Plan that may expire or be forfeited or cancelled. On July 12, 2012, the Board of Directors adopted the Masonite International Corporation 2012 Equity Incentive Plan, which was amended on June 21, 2013, by our Board of Directors, further amended and restated by our Board of Directors on February 23, 2015, and approved by our shareholders on May 12, 2015 (as amended and restated, the "2012 Plan"). The 2021 Equity Plan and the 2012 Plan ("the Plans") were adopted because the Board of Directors believes that long-term incentive awards granted under the Plans will help to attract, motivate and retain employees and non-employee directors, align employee and stockholder interests and encourage a performance-based culture built on employee stock ownership. The Plans permit us to offer eligible directors, employees and consultants cash and share-based incentives, including stock options, stock appreciation rights, restricted stock, other share-based awards (including restricted stock units) and cash-based awards. The Plans are effective for ten years from the date of its adoption. Awards granted under the Plans are at the discretion of the Human Resources and Compensation Committee of the Board of Directors. The Human Resources and Compensation Committee may grant any award under the Plans in the form of a performance award. The Plans may be amended, suspended or terminated by the Board at any time; provided, that any amendment, suspension or termination which impairs the rights of a participant is subject to such participant's consent and; provided further, that certain material amendments are subject to shareholder approval. As of December 31, 2023, there were 773,165 shares of common stock available for future issuance under the 2021 Equity Plan. Deferred Compensation Plan We offer to certain of our employees and directors a Deferred Compensation Plan ("DCP"). The DCP is an unfunded non-qualified deferred compensation plan that permits those certain employees and directors to defer a portion of their compensation to a future time. Eligible employees may elect to defer a portion of their base salary, bonus and/or restricted stock units and eligible directors may defer a portion of their director fees or restricted stock units. All contributions to the DCP on behalf of the participant are fully vested (other than restricted stock unit deferrals which remain subject to the vesting terms of the applicable equity incentive plan) and placed into a grantor trust, commonly referred to as a "rabbi trust." Although we are permitted to make matching contributions under the terms of the DCP, we have not elected to do so. The DCP invests the contributions in diversified securities from a selection of investments and the participants choose their investments and may periodically reallocate the assets in their respective accounts. Participants are entitled to receive the benefits in their accounts upon separation of service or upon a specified date, with benefits payable as a single lump sum or in annual installments. All plan investments are categorized as having Level 1 valuation inputs as established by the FASB’s Fair Value Framework. Assets of the rabbi trust, other than Company stock, are recorded at fair value and included in other assets in the consolidated balance sheets. These assets in the rabbi trust are classified as trading securities and changes in their fair values are recorded in other (income) expense, net in the consolidated statements of income and comprehensive income. The liability relating to deferred compensation represents our obligation to distribute funds to the participants in the future and is included in other liabilities in the consolidated balance sheets. As of December 31, 2023, the liability and asset relating to deferred compensation had a fair value of $8.4 million and $7.5 million, respectively. As of January 1, 2023, the liability and asset relating to deferred compensation had a fair value of $7.2 million and $7.0 million, respectively. Any gain or loss relating to changes in the fair value of the deferred compensation liability is recognized in selling, general and administration expense in the consolidated statements of income and comprehensive income. As of December 31, 2023, participation in the DCP is limited and no restricted stock awards have been deferred into the DCP. Stock Appreciation Rights We have granted Stock Appreciation Rights ("SARs") to certain employees, which entitle the recipient to the appreciation in value of a number of common shares over the exercise price over a period of time, each as specified in the applicable award agreement. The exercise price of any SAR granted may not be less than the fair market value of our common shares on the date of grant. The compensation expense for the SARs is measured based on the fair value of the SARs at the date of grant and is recognized over the requisite service period. The SARs vest over a maximum of three years, have a life of ten years and settle in common shares. It is assumed that all time-based SARs will vest. The total fair value of SARs vested was $0.7 million, $0.8 million and $0.8 million, in the years ended December 31, 2023, January 1, 2023, and January 2, 2022, respectively. Twelve Months Ended December 31, 2023 Stock Appreciation Rights Aggregate Intrinsic Value (in thousands) Weighted Average Exercise Price Average Remaining Contractual Life (Years) Outstanding, beginning of period 184,205 $ 2,153 $ 74.75 7.0 Granted 30,946 88.99 Exercised (10,429) 281 64.72 Forfeited (4,884) 90.58 Outstanding, end of period 199,838 $ 2,365 $ 77.09 6.4 Exercisable, end of period 142,388 $ 2,365 $ 71.34 5.6 Twelve Months Ended January 1, 2023 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 Forfeited (3,743) 96.15 Outstanding, end of period 184,205 $ 2,153 $ 74.75 7.0 Exercisable, end of period 124,842 $ 2,118 $ 66.14 6.3 Twelve Months Ended January 2, 2022 Stock Appreciation Rights Aggregate Intrinsic Value (in thousands) Weighted Average Exercise Price Average Remaining Contractual Life (Years) Outstanding, beginning of period 207,094 $ 7,409 $ 62.56 7.5 Granted 28,707 107.68 Exercised (69,223) 4,305 57.79 Forfeited (7,853) 82.76 Outstanding, end of period 158,725 $ 7,324 $ 71.81 7.5 Exercisable, end of period 81,474 $ 4,451 $ 63.32 6.9 The value of SARs granted in the year ended December 31, 2023, as determined using the Black-Scholes-Merton valuation model, was $1.0 million and is expected to be recognized over the average requisite service period of 2.0 years. Expected volatility is based upon the historical volatility of our common shares amongst other considerations. The expected term is calculated based on historical employee 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: 2023 Grants 2022 Grants 2021 Grants SAR value (model conclusion) $ 32.63 $ 26.52 $ 28.08 Risk-free rate 4.1 % 2.0 % 0.8 % Expected dividend yield 0.0 % 0.0 % 0.0 % Expected volatility 28.4 % 26.5 % 25.2 % Expected term (years) 6.0 6.0 6.0 Restricted Stock Units We have granted Restricted Stock Units ("RSUs") to directors and certain employees under the 2021 Equity Plan and the 2012 Plan. The RSUs confer the right to receive shares of our common stock at a specified future date or when certain conditions are met. The compensation expense for the RSUs awarded is based on the fair value of the RSUs at the date of grant, which is equal to the stock price on the date of grant, and is recognized over the requisite service period. The RSUs vest over a maximum of three years and call for the underlying shares to be delivered no later than 30 days following the vesting date unless the participant is subject to a blackout period. In such case, the shares are to be delivered once the blackout restriction has been lifted. It is assumed that all time-based RSUs will vest. Year Ended December 31, 2023 January 1, 2023 January 2, 2022 Total Restricted Stock Units Outstanding Weighted Average Grant Date Fair Value Total Restricted Stock Units Outstanding Weighted Average Grant Date Fair Value Total Restricted Stock Units Outstanding Weighted Average Grant Date Fair Value Outstanding, beginning of period 313,753 $ 92.85 291,925 $ 88.66 319,675 $ 68.33 Granted 213,255 89.95 216,774 88.22 142,540 111.02 Delivered (116,598) 93.34 (138,682) 78.51 (116,663) 66.40 Withheld to cover (1) (22,738) (23,319) (24,471) Forfeited (47,648) 91.51 (32,945) 95.83 (29,156) 82.85 Outstanding, end of period 340,024 $ 91.02 313,753 $ 92.85 291,925 $ 88.66 ____________ (1) A portion of the vested RSUs delivered were net share settled to cover statutory requirements for income and other employment taxes. We remit the equivalent cash to the appropriate taxing authorities. These net share settlements had the effect of share repurchases by us as we reduced and retired the number of shares that would have otherwise been issued as a result of the vesting. RSUs granted during the year ended December 31, 2023, vest at specified future dates with only service requirements. The value of RSUs granted in the year ended December 31, 2023, was $19.2 million and is being recognized over the weighted average requisite service period of 2.0 years. During the year ended December 31, 2023, 139,336 RSUs vested at a fair value of $13.0 million. Performance-based Restricted Stock Units We have granted certain Performance-based Restricted Stock Units ("PRSUs") under the 2021 Equity Plan and the 2012 Plan. These PRSUs are settled with payouts ranging from zero to 200% of the target award value depending on performance goal achievement. The compensation expense for the PRSUs awarded is based on the fair value of the PRSUs 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. In 2023, we granted certain PRSUs with an additional condition measured by Relative Total Shareholder Return ("TSR"). The compensation expense for these PRSUs is determined using the Monte Carlo simulation method. The PRSUs 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. Year Ended December 31, 2023 January 1, 2023 January 2, 2022 Total Performance Restricted Stock Units Outstanding Weighted Average Grant Date Fair Value Total Performance Restricted Stock Units Outstanding Weighted Average Grant Date Fair Value Total Performance Restricted Stock Units Outstanding Weighted Average Grant Date Fair Value Outstanding, beginning of period 310,678 $ 90.15 150,181 $ 84.47 168,382 $ 67.80 Granted 92,743 104.36 211,251 88.37 59,728 109.25 Performance adjustment (1) 17,139 79.25 25,234 57.19 14,474 63.05 Delivered (63,432) 79.25 (52,265) 57.19 (60,252) 63.05 Withheld to cover (2) (5,224) (11,809) (9,518) Forfeited (32,683) 94.94 (11,914) 94.50 (22,633) 78.20 Outstanding, end of period 319,221 $ 95.55 310,678 $ 90.15 150,181 $ 84.47 ____________ (1) PRSUs 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 PRSUs 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. PRSUs granted during the year ended December 31, 2023, vest at specified future dates based on both performance and service requirements, while certain PRSUs also vest based on TSR. The value of PRSUs granted in the year ended December 31, 2023, was $9.7 million and is being recognized over the weighted average requisite service period of 3.0 years. During the year ended December 31, 2023, 68,656 PRSUs vested at a fair value of $5.4 million. |
Restructuring Costs
Restructuring Costs | 12 Months Ended |
Dec. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Costs | Restructuring Costs Over the past several years, we have engaged in a series of restructuring programs related to exiting certain geographies and non-core businesses, consolidating certain internal support functions and engaging in other actions designed to reduce our cost structure and improve productivity. These initiatives primarily consist of severance actions and plant closure costs. Management continues to evaluate our business; therefore, in future years, there may be additional provisions for new plan initiatives, as well as changes in previously recorded estimates, as payments are made or actions are completed. Asset impairment charges were also incurred in connection with these restructuring actions for certain assets sold, abandoned or made obsolete as a result of these programs. In December 2023, we began implementing a plan to improve overall business performance that includes the optimization of our manufacturing capacity and reduction of our overhead and selling, general and administration workforce primarily in our Europe reportable segment (collectively, the "2024 Plan"). The optimization of our manufacturing capacity involves specific plants in the Europe segment and costs associated with the closure of these plants and related headcount reductions. Costs associated with the 2024 Plan include severance and closure charges and will continue throughout 2024. As of December 31, 2023, we expect to incur approximately $6 million to $9 million of additional charges related to the 2024 Plan. In December 2022, we began implementing a plan to improve overall business performance that includes the optimization of our manufacturing capacity and reduction of our overhead and selling, general and administration workforce primarily in our North American Residential reportable segment as well as actions in the Architectural reportable segment and in our head offices (collectively, the "2022 Plan"). The optimization of our manufacturing capacity involves specific plants in the North American Residential segment and costs associated with the closure of these plants and related headcount reductions. Costs associated with the 2022 Plan include severance and closure charges and will continue throughout 2024. As of December 31, 2023, we expect to incur approximately $3 million to $8 million of additional charges related to the 2022 Plan. As previously stated, we have engaged in restructuring programs over the past several years. The 2019, 2020, and 2021 restructuring programs have been aggregated as "Other Plans" for this note. As of December 31, 2023, we do not expect to incur any material future charges related to the Other Plans. The following table summarizes the restructuring charges recorded for the periods indicated: Year Ended December 31, 2023 (In thousands) North American Residential Europe Architectural Corporate & Other Total 2024 Plan $ — $ 158 $ — $ — $ 158 2022 Plan 8,481 — 864 627 9,972 Total Restructuring Costs $ 8,481 $ 158 $ 864 $ 627 $ 10,130 Year Ended January 1, 2023 (In thousands) North American Residential Europe Architectural Corporate & Other Total 2022 Plan $ 2,131 $ — $ — $ — $ 2,131 Other (395) — 79 89 (227) Total Restructuring Costs $ 1,736 $ — $ 79 $ 89 $ 1,904 Year Ended January 2, 2022 (In thousands) North American Residential Europe Architectural Corporate & Other Total Other $ (149) $ — $ 5,165 $ 551 $ 5,567 Total Restructuring Costs $ (149) $ — $ 5,165 $ 551 $ 5,567 Cumulative Amount Incurred Through December 31, 2023 (In thousands) North American Residential Europe Architectural Corporate & Other Total 2024 Plan $ — $ 158 $ — $ — $ 158 2022 Plan 10,612 — 864 627 12,103 Other 8,807 359 8,648 2,707 20,521 Total Restructuring Costs $ 19,419 $ 517 $ 9,512 $ 3,334 $ 32,782 The changes in the accrual for restructuring by activity were as follows for the periods indicated: (In thousands) January 1, Severance Closure Costs Cash Payments December 31, 2024 Plan $ — $ 158 $ — $ (158) $ — 2022 Plan — 5,657 4,315 (9,722) 250 Total $ — $ 5,815 $ 4,315 $ (9,880) $ 250 (In thousands) January 2, Severance Closure Costs Cash Payments January 1, 2022 Plan $ — $ 143 $ 1,988 $ (2,131) $ — Other 49 (30) (197) 178 — Total $ 49 $ 113 $ 1,791 $ (1,953) $ — (In thousands) January 3, Severance Closure Costs Cash Payments January 2, Other $ 1,783 $ 952 $ 4,615 $ (7,301) $ 49 Total $ 1,783 $ 952 $ 4,615 $ (7,301) $ 49 |
Asset Impairment
Asset Impairment | 12 Months Ended |
Dec. 31, 2023 | |
Asset Impairment Charges [Abstract] | |
Asset Impairment | Asset Impairment During the year ended December 31, 2023, we recognized asset impairment charges of $33.1 million, net of foreign currency translation, related to a goodwill impairment charge in the Europe reporting unit due to weakening consumer confidence in the United Kingdom that continues to affect demand in the repair and remodel market, negative impacts from rising energy and fuel costs, partly attributable to geopolitical conflicts, as well as rising costs for raw materials and material supply constraints. The quantitative impairment test was conducted using multiple valuation techniques, including a discounted cash flow analysis and market approach, which utilizes Level 3 fair value inputs, and resulted in a goodwill impairment charge. The charge represents the amount by which the carrying value of the Europe reporting unit exceeded its fair value, and was recorded in the consolidated statements of income and comprehensive income and reduced the goodwill balance in the Europe reporting unit from $60.0 million to $26.8 million, excluding foreign exchange fluctuations. See Note 7 for further information. During the year ended January 2, 2022, we recognized asset impairment charges of $69.9 million, of which $59.5 million related to a goodwill impairment charge in the Architectural reporting unit as a result of manufacturing constraints due to COVID-19 related absenteeism, material availability and production challenges and $10.4 million related to assets in the Architectural segment and an asset in the Corporate & Other category as a result of announced plant closures under the 2021 and 2020 Plans. The quantitative impairment test in the Architectural reporting unit was conducted using multiple valuation techniques, including a discounted cash flow analysis and market approach, which utilizes Level 3 fair value inputs, and resulted in the goodwill impairment charge. The $10.4 million charge represents the amount by which the carrying value of the Architectural reporting unit exceeded its fair value and reduced the goodwill balance from $59.5 million to zero. The asset impairment charge was determined based upon the excess of the carrying values of property, plant and equipment over the respective fair values of such assets, determined using a discounted cash flows approach for each asset group. The fair value of the assets was determined to be $6.3 million, compared to a book value of $16.7 million, with the difference representing the asset impairment charges recorded in the consolidated statements of income and comprehensive income. 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. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For financial reporting purposes, income before income taxes includes the following components: Year Ended (In thousands) December 31, 2023 January 1, 2023 January 2, 2022 Income before income tax expense: Canada $ 38,602 $ 78,768 $ 44,935 Foreign 123,608 211,429 99,031 Total income before income tax expense $ 162,210 $ 290,197 $ 143,966 Income tax expense for income taxes consists of the following: Year Ended (In thousands) December 31, 2023 January 1, 2023 January 2, 2022 Current income tax expense: Canada $ 10,870 $ 15,266 $ 9,392 Foreign 42,049 50,463 30,499 Total current income tax expense: 52,919 65,729 39,891 Deferred income tax (benefit) expense: Canada (7,793) 7,931 3,626 Foreign (4,185) (1,907) 1,255 Total deferred income tax (benefit) expense: (11,978) 6,024 4,881 Income tax expense $ 40,941 $ 71,753 $ 44,772 The Canadian statutory rate (inclusive of provincial rates) is 26.1%, 26.1% and 26.5% for the years ended December 31, 2023, January 1, 2023, and January 2, 2022, respectively. A summary of the differences between expected income tax expense calculated at the Canadian statutory rate and the reported consolidated income tax expense (benefit) is as follows: Year Ended (In thousands) December 31, 2023 January 1, 2023 January 2, 2022 Income tax expense computed at statutory income tax rate $ 42,386 $ 75,829 $ 38,137 Foreign rate differential (12,456) (10,045) (12,370) Permanent differences (286) (2,012) 3,843 Disposal of subsidiaries — 287 1,651 Income attributable to a permanent establishment 206 (6,517) 2,608 Change in valuation allowance (2,142) 5,202 1,569 Income tax credits (4,606) 2,673 (5,591) Foreign exchange gains (losses) 2,361 (2,271) 677 Change in tax rate (681) 1,120 2,706 Goodwill impairment 7,632 — 11,296 Limitation on executive compensation 2,275 2,273 1,904 Withholding and other taxes 2,286 2,100 1,761 Nondeductible interest 4,486 1,970 — Other (520) 1,144 (3,419) Income tax expense $ 40,941 $ 71,753 $ 44,772 The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities are presented below: Year Ended (In thousands) December 31, 2023 January 1, 2023 Deferred tax assets: Non-capital loss carryforwards $ 27,587 $ 12,525 Capital loss carryforwards 7,697 7,753 Deferred interest expense 8,742 9,052 Accruals and reserves currently not deductible for tax purposes 21,727 20,268 Share based compensation 6,011 4,887 Income tax credits 1,149 872 Lease right-of-use assets 54,659 53,985 Capitalized research and development 6,816 5,732 Other 1,511 2,031 Total deferred tax assets 135,899 117,105 Valuation allowance (12,113) (14,102) Total deferred tax assets, net of valuation allowance 123,786 103,003 Deferred tax liabilities: Plant and equipment (105,668) (86,337) Intangibles (49,615) (21,043) Basis difference in subsidiaries (7,682) (7,469) Unrealized foreign exchange loss 332 1,850 Lease liabilities (50,299) (48,889) Other (4,474) (4,572) Total deferred tax liabilities (217,406) (166,460) Net deferred tax liability $ (93,620) $ (63,457) Management assesses the available positive and negative evidence to estimate if sufficient future taxable income will be generated to use the existing deferred tax assets. As of December 31, 2023, and January 1, 2023, a valuation allowance of $12.1 million and $14.1 million, respectively, has been established to reduce the deferred tax assets to an amount that is more likely than not to be realized. We have established valuation allowances on certain deferred tax assets resulting from loss carryforwards and other assets in Canada, Costa Rica and the United Kingdom. The following is a rollforward of the valuation allowance for deferred tax assets: Year Ended (In thousands) December 31, 2023 January 1, 2023 January 2, 2022 Balance at beginning of period $ 14,102 $ 10,286 $ 5,970 Additions charged to expense and other 590 10,252 4,473 Deductions (2,579) (6,436) (157) Balance at end of period $ 12,113 $ 14,102 $ 10,286 The losses carried forward for tax purposes are available to reduce future taxable income by $108.2 million. We can apply these losses against future taxable income based on the period of expiration as follows: (In thousands) Canada Other Foreign Total 2024-2029 $ — $ 3,376 $ 3,376 2030-2044 74,186 — 74,186 Indefinitely — 30,598 30,598 Total tax losses carried forward $ 74,186 $ 33,974 $ 108,160 We have outside basis differences, including undistributed earnings in our foreign subsidiaries. For those subsidiaries in which we are considered to be indefinitely reinvested, no provision for Canadian income or local country withholding taxes has been recorded. Upon reversal of the outside basis difference and/or repatriation of those earnings, in the form of dividends or otherwise, we may be subject to both Canadian income taxes and withholding taxes payable to the various foreign countries. For those subsidiaries where the earnings are not considered indefinitely reinvested, taxes have been accrued. The determination of the unrecorded deferred tax liability for temporary differences related to investments in foreign subsidiaries that are considered to be indefinitely reinvested is not considered practicable. As of December 31, 2023, and January 1, 2023, our unrecognized tax benefits were $6.8 million and $7.7 million, respectively, excluding interest and penalties. The unrecognized tax benefits would favorably impact the effective tax rate if the tax benefits were recognized. The unrecognized tax benefits are recorded in other long-term liabilities and as a reduction to related long-term deferred income taxes in the consolidated balance sheets. The changes to our unrecognized tax benefits were as follows: Year Ended (In thousands) December 31, 2023 January 1, 2023 January 2, 2022 Unrecognized tax benefit at beginning of period $ 7,680 $ 7,592 $ 8,108 Gross increases in tax positions in current period 106 151 103 Gross decreases in tax positions in prior period (488) (173) (108) Gross increases in tax positions in prior period 56 110 — Lapse of statute of limitations (523) — (511) Unrecognized tax benefit at end of period $ 6,831 $ 7,680 $ 7,592 We recognize interest and penalties accrued related to unrecognized tax benefits as income tax expense. During the years ended December 31, 2023, January 1, 2023, and January 2, 2022, we recorded accrued interest of $0.7 million, $0.6 million and $0.4 million, respectively. Additionally, we have recognized a liability for accumulated penalties of $0.2 million, $0.3 million and $0.3 million, and accumulated interest of $3.2 million, $3.1 million and $2.8 million, respectively. The interest and penalties accrued related to unrecognized tax benefits would also favorably impact the effective tax rate if those benefits were recognized. We estimate that the amount of unrecognized tax benefits will decrease within the 12 months following the reporting date by approximately $4.5 million due to lapse of statute of limitations. We are subject to taxation in Canada, the United States and other foreign jurisdictions. As of December 31, 2023, we are no longer subject to Canadian income tax examination for years prior to 2019. Additionally, we are no longer subject to U.S. federal tax examinations for years prior to 2020. To the extent that income tax attributes such as net operating losses and tax credits have been carried forward from years prior to 2020, those attributes can still be audited when utilized on returns subject to audit. In state and local jurisdictions, we are no longer subject to income tax examination for years prior to 2017. 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 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings per share ("EPS") is calculated by dividing earnings attributable to Masonite by the weighted average number of our common shares outstanding during the period. Diluted EPS is calculated by dividing earnings attributable to Masonite by the weighted average number of common shares plus the incremental number of shares issuable from non-vested and vested RSUs and SARs outstanding during the period. Year Ended (In thousands, except share and per share information) December 31, 2023 January 1, 2023 January 2, 2022 Net income attributable to Masonite $ 118,227 $ 214,233 $ 94,501 Shares used in computing basic earnings per share 22,031,168 22,532,722 24,176,846 Effect of dilutive securities: Incremental shares issuable under share compensation plans 314,312 239,743 385,687 Shares used in computing diluted earnings per share 22,345,480 22,772,465 24,562,533 Basic earnings per common share attributable to Masonite $ 5.37 $ 9.51 $ 3.91 Diluted earnings per common share attributable to Masonite $ 5.29 $ 9.41 $ 3.85 Anti-dilutive instruments excluded from diluted earnings per common share 97,805 223,968 28,707 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. The Company's Board of Directors 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. The Arrangement Agreement (as defined herein) with Owens Corning restricts our ability to repurchase our shares and therefore our share repurchase program is currently suspended through February 8, 2025, other than for the repurchase of shares associated with tax withholding requirements for share-based compensation. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Our management reviews net sales and Adjusted EBITDA (as defined below) to evaluate segment performance and allocate resources. Net assets are not allocated to the reportable segments. Adjusted EBITDA is a non-GAAP financial measure which does not have a standardized meaning under GAAP and is unlikely to be comparable to similar measures used by other companies. Adjusted EBITDA should not be considered as an alternative to either net income or operating cash flows determined in accordance with GAAP. Adjusted EBITDA is defined as net income (loss) attributable to Masonite adjusted to exclude the following items: • depreciation; • amortization; • share based compensation expense; • loss (gain) on disposal of property, plant and equipment; • registration and listing fees; • restructuring costs (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. The definition of Adjusted EBITDA differs from the definitions of EBITDA contained in the indenture governing the 2030 Notes and the 2028 Notes and the credit agreements governing the Term Loan Facility and 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. Certain information with respect to reportable segments is as follows for the periods indicated: Year Ended December 31, 2023 (In thousands) North American Residential Europe Architectural Corporate & Other Total Net sales $ 2,246,492 $ 247,539 $ 337,400 $ 15,410 $ 2,846,841 Intersegment sales (1,610) (571) (13,951) (14) (16,146) Net sales to external customers $ 2,244,882 $ 246,968 $ 323,449 $ 15,396 $ 2,830,695 Adjusted EBITDA $ 440,887 $ 10,709 $ 15,462 $ (48,416) $ 418,642 Depreciation and amortization 73,773 21,279 12,924 16,145 124,121 Interest expense, net — — — 50,822 50,822 Income tax expense — — — 40,941 40,941 Year Ended January 1, 2023 (In thousands) North American Residential Europe Architectural Corporate & Other Total Net sales $ 2,286,098 $ 282,989 $ 323,175 $ 20,293 $ 2,912,555 Intersegment sales (2,456) (2,220) (16,192) — (20,868) Net sales to external customers $ 2,283,642 $ 280,769 $ 306,983 $ 20,293 $ 2,891,687 Adjusted EBITDA $ 461,750 $ 28,774 $ (3,748) $ (40,978) $ 445,798 Depreciation and amortization 42,958 21,061 12,374 11,902 88,295 Interest expense, net — — — 41,331 41,331 Income tax expense — — — 71,753 71,753 Year Ended January 2, 2022 (In thousands) North American Residential Europe Architectural Corporate & Other Total Net sales $ 1,955,424 $ 342,172 $ 303,078 $ 20,014 $ 2,620,688 Intersegment sales (2,526) (7,640) (13,602) — (23,768) Net sales to external customers $ 1,952,898 $ 334,532 $ 289,476 $ 20,014 $ 2,596,920 Adjusted EBITDA $ 374,452 $ 60,624 $ (2,704) $ (19,766) $ 412,606 Depreciation and amortization 39,504 23,825 14,620 14,033 91,982 Interest expense, net — — — 46,123 46,123 Income tax benefit — — — 44,772 44,772 A reconciliation of our consolidated net income attributable to Masonite to Adjusted EBITDA is set forth as follows for the periods indicated: Year Ended (In thousands) December 31, 2023 January 1, 2023 January 2, 2022 Net income attributable to Masonite $ 118,227 $ 214,233 $ 94,501 Plus: Depreciation 91,145 71,168 70,641 Amortization 32,976 17,127 21,341 Share based compensation expense 23,638 21,771 15,959 Loss (gain) on disposal of property, plant and equipment 4,434 (378) 1,316 Restructuring costs 10,130 1,904 5,567 Asset impairment 33,063 — 69,900 Loss on disposal of subsidiaries — 850 8,590 Interest expense, net 50,822 41,331 46,123 Loss on extinguishment of debt — — 13,583 Other (income) expense, net (2,087) (5,001) 15,620 Income tax expense 40,941 71,753 44,772 Other items (1) 12,311 6,829 — Net income attributable to non-controlling interest 3,042 4,211 4,693 Adjusted EBITDA $ 418,642 $ 445,798 $ 412,606 ____________ (1) Other items include $12,311 in acquisition and due diligence related costs and legal costs related to the settlement of Canada class action litigation in the year ended December 31, 2023, and $6,829 in acquisition and due diligence related costs in the year ended January 1, 2023, and were recorded in selling, general and administration expenses within the consolidated statements of income and comprehensive income. We derive revenues from two major product lines: interior and exterior products. Additionally, we sell door components to external customers which are not otherwise consumed in our vertical operations. Sales for the product lines are summarized as follows for the periods indicated: Year Ended (In thousands) December 31, 2023 January 1, 2023 January 2, 2022 Net sales to external customers: Interior products $ 1,647,452 $ 1,871,103 $ 1,654,379 Exterior products 839,716 892,945 813,605 Components 343,527 127,639 128,936 Total $ 2,830,695 $ 2,891,687 $ 2,596,920 Net sales information with respect to geographic areas exceeding 10% of consolidated net sales is as follows for the periods indicated: Year Ended (In thousands) December 31, 2023 January 1, 2023 January 2, 2022 Net sales to external customers from facilities in: United States $ 2,247,062 $ 2,153,689 $ 1,776,180 Canada 289,877 395,938 364,179 United Kingdom 229,336 259,944 300,008 Other 64,420 82,116 156,553 Total $ 2,830,695 $ 2,891,687 $ 2,596,920 In the years ended December 31, 2023, January 1, 2023, and January 2, 2022, net sales to The Home Depot, Inc., were $566.1 million, $630.7 million and $491.5 million, respectively, which are included in the North American Residential segment. No other individual customer's net sales exceeded 10% of consolidated net sales for any of the periods presented. Geographic information regarding property, plant and equipment which exceed 10% of consolidated property, plant and equipment is as follows as of the dates indicated: (In thousands) December 31, 2023 January 1, 2023 United States $ 526,691 $ 443,105 United Kingdom 77,490 58,246 Other (1) 143,789 150,978 Total $ 747,970 $ 652,329 ____________ (1) Except for the United States and United Kingdom, property, plant and equipment in any single country was less than 10% of consolidated property, plant and equipment, net. |
Employee Future Benefits
Employee Future Benefits | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Employee Future Benefits | Employee Future Benefits United States Defined Benefit Pension Plan We had a defined benefit pension plan covering certain active and former employees in the United States ("U.S. Pension Plan"). Benefits under the plan were frozen at various times in the past. On December 9, 2020, the Board of Directors approved a resolution to terminate the U.S. Pension Plan and we initiated the process to terminate and annuitize the plan, which continued into 2021. During the fourth quarter of 2021, we completed balance sheet risk mitigation actions related to the U.S. Pension Plan and terminated the plan. In connection with the plan termination, we settled all future obligations under the U.S. Pension Plan through a combination of lump-sum payments to eligible participants who elected to receive them, and the transfer of any remaining benefit obligations to a third-party insurance company under a group annuity contract, which resulted in the settlement of liabilities to affected participants. As a result of these actions, we recognized a pre-tax pension settlement charge of $23.3 million in the fourth quarter of 2021, primarily comprised of the recognition of past actuarial losses. This charge is recorded within other (income) expense, net in the consolidated statements of income and comprehensive income. Information about the U.S. Pension Plan is as follows for the periods indicated: Year Ended (In thousands) December 31, 2023 January 1, 2023 January 2, 2022 Components of net periodic benefit cost: Service cost $ — $ — $ 331 Interest cost — — 1,516 Expected return on assets — — (2,953) Amortization of actuarial net losses — — 1,047 Settlement loss — 23,343 Net pension expense (benefit) $ — $ — $ 23,284 The weighted average actuarial assumptions adopted in measuring our U.S. accrued benefit obligations and costs prior to termination were as follows for the periods indicated: Year Ended December 31, 2023 January 1, 2023 January 2, 2022 Discount rate applied for: Accrued benefit obligation — % — % 2.4 % Net periodic pension cost — % — % 2.4 % Expected long-term rate of return on plan assets — % — % 3.5 % The rate of compensation increase for the accrued benefit obligation and net periodic pension costs for the U.S. Pension Plan is not applicable, as benefits under the plan are not affected by compensation increases. The expected long-term rate of return on plan assets assumption was derived by taking into consideration the target plan asset allocation, historical rates of return on those assets, projected future asset class returns and net outperformance of the market by active investment managers. An asset return model was used to develop an expected range of returns on the plan investments over a 30-year period, with the expected rate of return selected from a best estimate range within the total range of projected results. United Kingdom Defined Benefit Pension Plan We have a defined benefit pension plan in the United Kingdom ("U.K. Pension Plan"), which has been curtailed in prior years. The measurement date used for the accounting valuation of the U.K. Pension Plan was December 31, 2023. Information about the U.K. Pension Plan is as follows for the periods indicated: Year Ended (In thousands) December 31, 2023 January 1, 2023 January 2, 2022 Components of net periodic benefit cost: Interest cost $ 981 $ 504 $ 366 Expected return on assets (827) (934) (1,292) Amortization of actuarial net losses 791 22 289 Net pension benefit $ 945 $ (408) $ (637) Information with respect to the assets, liabilities and net plan assets (accrued benefit obligation) of the U.K. Pension Plan is as follows for the periods indicated: Year Ended (In thousands) December 31, 2023 January 1, 2023 Pension assets: Fair value of plan assets, beginning of year $ 18,082 $ 33,389 Company contributions 2,087 2,021 Actual return on plan assets 909 (13,071) Benefits paid (958) (1,006) Translation adjustment 1,079 (3,251) Fair value of plan assets, end of year 21,199 18,082 Pension liability Accrued benefit obligation, beginning of year 20,071 33,002 Interest cost 981 504 Actuarial gain (357) (9,153) Benefits paid (958) (1,006) Translation adjustment 1,139 (3,276) Accrued benefit obligation, end of year 20,876 20,071 Net plan assets (accrued benefit obligation), end of year $ 323 $ (1,989) There were $0.4 million of actuarial gains during fiscal year 2023 primarily as a result of asset returns exceeding expectations over the year and future inflation being lower than previously anticipated. In addition, demographic assumptions were updated to imply lower life expectancy and lead to lower liabilities. This change was partially offset by the discount rate decreasing from 4.81% to 4.48%. There were $9.2 million of actuarial gains during fiscal year 2022 primarily as a result of a change in the discount rate from 1.83% to 4.81%. There were no material changes to any other key assumptions nor was there a significant demographic gain or loss. Amounts deferred in AOCL is set forth for the periods indicated: Year Ended (In thousands) December 31, 2023 January 1, 2023 Net actuarial loss $ 6,389 $ 7,212 Prior service cost 443 440 Total amount recognized in AOCL, pre-tax $ 6,832 $ 7,652 A reconciliation of the change in AOCL is set forth as follows for the periods indicated: Year Ended (In thousands) December 31, 2023 January 1, 2023 Net actuarial (gain) loss $ (439) $ 4,852 Amortization of: Prior service cost (22) (22) Net actuarial loss from prior years (769) — Translation adjustment 410 (490) Change in AOCL, pre-tax $ (820) $ 4,340 The net plan assets are recorded within other assets in the consolidated balance sheets. Pension fund assets are invested primarily in equity and debt securities. Asset allocation between equity and debt securities and cash is adjusted based on the expected life of the plan and the expected retirement age of the plan participants. Information with respect to the amounts and types of securities that are held in the U.K. Pension Plan is set forth as follows for the periods indicated: Year Ended December 31, 2023 January 1, 2023 (In thousands) Amount % of Total Plan Amount % of Total Plan Equity securities $ 4,511 21.3 % $ 3,740 20.7 % Other 16,688 78.7 % 14,342 79.3 % $ 21,199 100.0 % $ 18,082 100.0 % Under the plan's investment policy and strategy, plan assets are invested to achieve a fully funded status based on actuarial calculations, maintain a level of liquidity that is sufficient to pay benefit and expense obligations when due, maintain flexibility in determining the future level of contributions and maximize returns within the limits of risk. The target asset allocation for plan assets in the U.K. Pension Plan for 2023 is 80% other securities and 20% equity securities. Other securities represent investments that are primarily invested in a mixture of debt and equity securities. The weighted average actuarial assumptions adopted in measuring our U.K. accrued benefit obligations and costs were as follows for the periods indicated: Year Ended December 31, 2023 January 1, 2023 January 2, 2022 Discount rate applied for: Accrued benefit obligation 4.5 % 4.8 % 1.8 % Net periodic pension cost 4.8 % 1.7 % 1.0 % Expected long-term rate of return on plan assets 4.3 % 3.0 % 4.1 % The rate of compensation increase for the accrued benefit obligation and net pension cost for the U.K. Pension Plan is not applicable, as the plan was curtailed in prior years and benefits under the plan are not affected by compensation increases. The expected long-term rate of return on plan assets assumption is derived by taking into consideration the target plan asset allocation, historical rates of return on those assets, projected future asset class returns and net outperformance of the market by active investment managers. An asset return model is used to develop an expected range of returns on the plan investments over a 10-year period, with the expected rate of return selected from a best estimate range within the total range of projected results. As of December 31, 2023, the estimated future benefit payments from the U.K. Pension Plan for the following future periods are set forth as follows: (In thousands) Expected Future Benefit Payments Fiscal year: 2024 $ 1,054 2025 1,198 2026 1,174 2027 1,226 2028 1,301 Thereafter 7,152 Total estimated future benefit payments $ 13,105 Expected contributions to the U.K. Pension Plan during 2024 are $2.2 million. Overall Pension Obligation For all periods presented, the U.S. and U.K. Pension Plans were invested in equity securities, equity funds, bonds, bond funds and cash and cash equivalents. All investments are publicly traded and possess a high level of marketability or liquidity. All plan investments are categorized as having Level 1 valuation inputs as established by the FASB’s Fair Value Framework. The change in the net difference between the pension plan assets and projected benefit obligation that is not attributed to our recognition of pension expense or funding of the plan is recognized in other comprehensive (loss) income within the consolidated statements of income and comprehensive income and the balance of such changes is included in AOCL in the consolidated balance sheets. Defined Contribution Benefit Plans We have defined contribution benefit plans covering certain U.S. and foreign subsidiary employees subject to eligibility requirements set up in accordance with local statutory requirements. Contributions made to these plans were $16.5 million, $16.1 million and $15.6 million for the years ended December 31, 2023, January 1, 2023, and January 2, 2022, respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income and Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income and Other Comprehensive Income | Accumulated Other Comprehensive Loss and Other Comprehensive Income (Loss) A rollforward of the components of accumulated other comprehensive loss is as follows for the periods indicated: Year Ended (In thousands) December 31, 2023 January 1, 2023 January 2, 2022 Accumulated foreign exchange losses, beginning of period $ (132,001) $ (96,919) $ (93,684) Foreign currency translation gain (loss) 19,148 (36,369) (6,719) Income tax benefit on foreign currency translation gain 9 18 6 Cumulative translation adjustment recognized upon deconsolidation of subsidiaries — 732 3,544 Less: foreign exchange gain (loss) attributable to non-controlling interest 179 (537) 66 Accumulated foreign exchange losses, end of period (113,023) (132,001) (96,919) Accumulated pension and other post-retirement adjustments, beginning of period (10,223) (4,663) (18,379) Pension and other post-retirement adjustments 447 (4,718) 2,250 Income tax benefit (expense) on pension and other post-retirement adjustments 2,003 (858) (437) Amortization of actuarial net losses 805 22 1,336 Income tax expense on amortization of actuarial net losses (201) (6) (258) Pension settlement charges — — 15,654 Income tax expense on pension settlement charges — — (4,829) Accumulated pension and other post-retirement adjustments, end of period (7,169) (10,223) (4,663) Accumulated other comprehensive loss $ (120,192) $ (142,224) $ (101,582) Other comprehensive income (loss), net of tax: $ 22,211 $ (41,179) $ 10,547 Less: other comprehensive income (loss) attributable to non-controlling interest 179 (537) 66 Other comprehensive income (loss) attributable to Masonite $ 22,032 $ (40,642) $ 10,481 Cumulative translation adjustments are reclassified out of accumulated other comprehensive loss into loss on disposal of subsidiaries in the year ended January 1, 2023, in the consolidated statements of income and comprehensive income. Actuarial net losses are reclassified out of accumulated other comprehensive loss into cost of goods sold in the consolidated statements of income and comprehensive income. Pension settlement charges are reclassified out of accumulated other comprehensive loss into other (income) expense, net, in the consolidated statements of income and comprehensive income. Foreign currency translation gains as a result of translating our foreign assets and liabilities into U.S. dollars during the year ended December 31, 2023, were $19.1 million, primarily driven by strengthening of the Pound Sterling, the Canadian Dollar, the Mexican Peso, and the Euro in comparison to the U.S. dollar during the period. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2023 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information Certain cash and non-cash transactions were as follows for the periods indicated: Year Ended (In thousands) December 31, 2023 January 1, 2023 January 2, 2022 Transactions involving cash: Interest paid $ 57,719 $ 41,846 $ 42,703 Interest received 12,595 2,783 250 Income taxes paid 77,135 77,500 40,506 Income tax refunds 4,560 1,596 875 Cash paid for operating lease liabilities 37,643 33,451 29,886 Cash paid for finance lease liabilities 1,414 1,359 1,470 Non-cash transactions from operating activities: Right-of-use assets acquired under operating leases 68,902 9,307 49,703 Holdback of portion of Endura purchase payable 18,000 — — The following reconciles total cash, cash equivalents and restricted cash as of the dates indicated: December 31, 2023 January 1, 2023 Cash and cash equivalents $ 137,414 $ 296,922 Restricted cash 11,926 11,999 Total cash, cash equivalents and restricted cash $ 149,340 $ 308,921 Property, plant and equipment additions in accounts payable were $9.0 million and $10.4 million as of December 31, 2023, and January 1, 2023, respectively. During the fourth quarter of 2018, we provided debt financing to a distribution company via an interest-bearing note that was scheduled to mature in 2028. The interest-bearing note receivable was carried at amortized cost, with the interest payable in kind at the election of the borrower. The note receivable balance was $12.6 million as of January 1, 2023. The note receivable was recorded in the consolidated balance sheets as a component of prepaid expenses and other assets as of January 1, 2023. On January 26, 2023, the note receivable was redeemed and fully repaid. |
Variable Interest Entity
Variable Interest Entity | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entity | Variable Interest Entity As of December 31, 2023, and January 1, 2023, we held an interest in one variable interest entity ("VIE"), Magna Foremost Sdn Bhd, which is located in Bintulu, Malaysia. The VIE is integrated into our supply chain and manufactures door facings. We are the primary beneficiary of the VIE based on the terms of the existing supply agreement with the VIE. As primary beneficiary via the supply agreement, we receive a disproportionate amount of earnings on sales to third parties in relation to our voting interest, and as a result, receive a majority of the VIE’s residual returns. Sales to third parties did not have a material impact on our consolidated financial statements. We also have the power to direct activities of the VIE that most significantly impact the entity’s economic performance. As its primary beneficiary, we have consolidated the results of the VIE. Our net cumulative investment in the VIE was comprised of the following as of the dates indicated: (In thousands) December 31, 2023 January 1, 2023 Current assets $ 7,837 $ 5,699 Property, plant and equipment, net 7,652 8,056 Long-term deferred income taxes 544 1,170 Other assets 4,523 4,067 Current liabilities (1,807) (1,396) Other long-term liabilities (431) (4) Non-controlling interest (4,028) (3,229) Net assets of the VIE consolidated by Masonite $ 14,290 $ 14,363 Current assets include $3.0 million and $1.0 million of cash and cash equivalents as of December 31, 2023, and January 1, 2023, respectively. Assets recognized as a result of consolidating this VIE do not represent additional assets that could be used to satisfy claims against our general assets. Furthermore, liabilities recognized as a result of consolidating these entities do not represent additional claims on our general assets; rather, they represent claims against the specific assets of the consolidated VIE. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2023 | |
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 carrying amount of our Term Loan Facility approximates fair value as the interest rates are variable and reflective of market rates. The estimated fair values and carrying values of our long-term debt instruments were as follows for the periods indicated: December 31, 2023 January 1, 2023 (In thousands) Fair Value Carrying Value Fair Value Carrying Value 3.50% senior unsecured notes due 2030 $ 324,956 $ 371,679 $ 303,870 $ 371,136 5.375% senior unsecured notes due 2028 $ 482,285 $ 496,609 $ 462,495 $ 495,868 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 | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Arrangement Agreement with Owens Corning On February 8, 2024, we entered into an Arrangement Agreement (the “Arrangement Agreement”) with Owens Corning (“Owens Corning”), a Delaware corporation, and MT Acquisition Co LLC (“Purchaser”), a British Columbia unlimited liability company and a wholly owned subsidiary of Owens Corning. Subject to the terms and conditions of the Arrangement Agreement, Owens Corning, through Purchaser, agreed to acquire the Company for $133.00 per issued and outstanding share of our common stock, no par value (the “Shares”), in an all-cash transaction. Pursuant to the Arrangement Agreement, following consummation of implementation of a court-approved plan of arrangement under the Business Corporations Act (British Columbia) (the “Acquisition”), the Company will be a wholly owned subsidiary of Owens Corning. Pursuant to the terms of the Arrangement Agreement, and subject to the terms and conditions set forth therein, at the effective time of the Acquisition (the “Effective Time”), each Share (other than any Share that is held by Owens Corning or any of its subsidiaries or any Share as to which dissent rights have been properly exercised by the holder thereof in accordance with British Columbia law) issued and outstanding immediately prior to the Effective Time will be cancelled and automatically converted into the right to receive $133.00 in cash, without interest. If the Arrangement Agreement is terminated under certain specified circumstances, we or Owens Corning will be required to pay a termination fee. We will be required to pay Owens Corning a termination fee of $75.0 million under specified circumstances, including (a) termination of the Arrangement Agreement in connection with our entry into an agreement with respect to a Superior Proposal (as defined in the Arrangement Agreement) prior to us receiving stockholder approval of the Acquisition, (b) termination by Owens Corning upon an Adverse Recommendation Change (as defined in the Arrangement Agreement), or (c) termination in certain circumstances by either Owens Corning or us upon failure to obtain Masonite Shareholder Approval (as defined in the Arrangement Agreement) or by Owens Corning if we breach our representations, warranties or covenants in a manner that would result in a failure of an applicable closing condition to be satisfied and, if curable, we fail to cure such breach during specific time periods, in each case, if certain other conditions are met. Owens Corning will be required to pay us a reverse termination fee under specified circumstances, including termination of the Arrangement Agreement due to a permanent injunction arising from Competition Laws (as defined in the Arrangement Agreement) when we are not then in material breach of any provision of the Arrangement Agreement and if certain other conditions are met, in an amount equal to $150.0 million. The consummation of the Acquisition is subject to customary closing conditions, including, among others, (1) the adoption of a resolution approving the Acquisition by at least two-thirds of the votes cast on such resolution by our stockholders entitled to vote thereon and represented in person or by proxy at the applicable special meeting of our stockholders, (2) the issuance of interim and final orders by the Supreme Court of British Columbia approving the Acquisition, (3) the expiration or termination of any applicable waiting period or periods under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (as amended) and the receipt of certain required regulatory clearances and approvals in other jurisdictions under applicable antitrust and foreign direct investment laws and regulations, including in Canada, Mexico and the United Kingdom, and (4) absence of any law, injunction, order or other judgment prohibiting, rendering illegal or permanently enjoining the consummation of the Acquisition. Each party’s obligation to consummate the Acquisition is also subject to the accuracy of the other party’s representations and warranties contained in the Agreement (subject, with specified exceptions, to materiality or “Material Adverse Effect” standards), the other party’s performance of its covenants and agreements in the Agreement in all material respects, and in the case of Purchaser’s obligation to consummate the Acquisition, the absence of any “Material Adverse Effect” relating to us. PGTI |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Pay vs Performance Disclosure | |||
Net income attributable to Masonite | $ 118,227 | $ 214,233 | $ 94,501 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Business Overview and Signifi_2
Business Overview and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation We prepare these consolidated financial statements in accordance with accounting principles generally accepted in the United States of America ("GAAP"). These consolidated financial statements include the accounts of Masonite International Corporation, a company incorporated under the laws of British Columbia, and its subsidiaries, as of December 31, 2023, and January 1, 2023, and for the years ended December 31, 2023, January 1, 2023, and January 2, 2022. Our fiscal year is the 52- or 53-week period ending on the Sunday closest to December 31. In a 52-week year, each fiscal quarter consists of 13 weeks. For ease of disclosure, the 13-week periods are referred to as three-month periods and the 52- or 53-week periods are referred to as years. Our 2020 fiscal year, which ended on January 3, 2021, contained 53 weeks of operating results, with the additional week occurring in the fourth quarter. |
Changes in Accounting Standards and Policies | Adoption of Recent Accounting Pronouncements In December 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 was effective for annual periods beginning after December 15, 2021, with early adoption permitted. We have 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 or disclosures. In October 2021, the FASB issued ASU 2021-08, "Accounting for Contract Assets and Contract Liabilities from Contracts with Customers," which clarifies that an acquirer of a business should recognize and measure contract assets and contract liabilities in a business combination in accordance with ASU 2014-09," Revenue from Contracts with Customers" as if the entity had originated the contracts. The guidance was effective for fiscal years beginning after December 15, 2022, with early application permitted. We have adopted the new guidance as of January 2, 2023, the beginning of fiscal year 2023, and the adoption did not have a material impact on our financial statements or disclosures. Other Recent Accounting Pronouncements not yet Adopted In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740) - Improvements to Income Tax Disclosures," which requires public business entities to annually disclose specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. The guidance is effective for fiscal years beginning after December 15, 2024, with early application permitted. We did not early adopt and believe the adoption of this new guidance will not have a material impact on our financial statements. In November 2023, the FASB issued ASU 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures," which improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The guidance is effective for fiscal years beginning after December 15, 2023, with early application permitted. We did not early adopt and believe the adoption of this new guidance will not have a material impact on our financial statements. |
Principles of consolidation | Principles of consolidation: These consolidated financial statements include the accounts of Masonite and our subsidiaries and the accounts of any variable interest entities for which we are the primary beneficiary. Intercompany accounts and transactions have been eliminated upon consolidation. The results of subsidiaries acquired during the periods presented are consolidated from their respective dates of acquisition using the acquisition method. Subsidiaries are prospectively deconsolidated as of the date we no longer have effective control of the entity. |
Translation of consolidated financial statements into U.S. dollars | Translation of consolidated financial statements into U.S. dollars: These consolidated financial statements are expressed in U.S. dollars. The accounts of the majority of our self-sustaining foreign operations are maintained in functional currencies other than the U.S. dollar. Assets and liabilities for these subsidiaries have been translated into U.S. dollars at the exchange rates prevailing at the end of the period and results of operations at the average exchange rates for the period. Unrealized exchange gains and losses arising from the translation of the financial statements of our non-U.S. functional currency operations are accumulated in the cumulative translation adjustments account in accumulated other comprehensive loss. For our foreign subsidiaries where the U.S. dollar is the functional currency, all foreign currency-denominated accounts are remeasured into U.S. dollars. Unrealized exchange gains and losses arising from remeasurements of foreign currency-denominated assets and liabilities are included within other (income) expense, net in the consolidated statements of income and comprehensive income. Gains and losses arising from international intercompany transactions that are of a long-term investment nature are reported in the same manner as translation gains and losses. Realized exchange gains and losses are included in net income for the periods presented. |
Cash and cash equivalents | Cash and cash equivalents: Cash includes cash equivalents which are short-term highly liquid investments with original maturities of three months or less. |
Restricted cash | Restricted cash:Restricted cash includes cash we have placed as collateral for standby letters of credit. The letters of credit guarantee payment to third parties in the event the company is in breach of contract terms as detailed in each letter of credit. |
Accounts receivable | Accounts receivable: Our customers are primarily retailers, distributors and contractors. We record an allowance for credit losses at the time that accounts receivable are initially recorded based on the historical write-off experience and the current economic environment as well as our expectations of future economic conditions. We reassess the allowance at each reporting date. When it becomes apparent, based on age or customer circumstances, that such amounts will not be collected, they are charged to the allowance. Payments subsequently received are credited to the credit loss expense account included within selling, general and administration expenses in the consolidated statements of income and comprehensive income. Generally, we do not require collateral for our accounts receivable. |
Inventories | Inventories: Raw materials, work in process and finished goods are valued at the lower of cost or net realizable value. Cost is determined on a first in, first out basis. In determining the net realizable value, we consider factors such as yield, turnover, expected future demand and past experience. The cost of inventories includes all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition. The costs of conversion of inventories include costs directly related to the units of production, such as direct labor. They also include a systematic allocation of fixed and variable production overheads that are incurred in converting raw materials into finished goods. Fixed production overheads are those indirect costs of production that remain relatively constant regardless of the volume of production, such as depreciation and maintenance of factory buildings and equipment, and the cost of factory management and administration. Variable production overheads are those indirect costs of production that vary directly, or nearly directly, with the volume of production, such as indirect materials and indirect labor. To determine the cost of inventory, we allocate fixed expenses to the cost of production based on the normal capacity, which refers to a range of production levels and is considered the production expected to be achieved over a number of periods or seasons under normal circumstances, taking into account the loss of capacity resulting from planned maintenance. Fixed overhead costs allocated to each unit of production are not increased due to abnormally low production. Those excess costs are recognized as a current period expense. When a production facility is completely shut down temporarily, it is considered idle, and all related expenses are charged to cost of goods sold. |
Property, plant and equipment | Property, plant and equipment: Property, plant and equipment are stated at cost. Depreciation is recorded based on the carrying values of buildings, machinery and equipment using the straight-line method over the estimated useful lives set forth as follows: Useful Life (Years) Buildings 20 - 40 Machinery and equipment Tooling 10 - 25 Machinery and equipment 5 - 25 Molds and dies 20 - 25 Office equipment, fixtures and fittings 3 - 10 Information technology systems 5 - 15 Improvements and major maintenance that extend the life of an asset are capitalized; other repairs and maintenance are expensed as incurred. When assets are retired or otherwise disposed, their carrying values and accumulated depreciation are removed from the accounts. Property, plant and equipment are tested for impairment when events or changes in circumstances indicate that the carrying value of an asset or asset group may not be recoverable. An impairment loss is recognized when the carrying amount of an asset or asset group being tested for recoverability exceeds the sum of the undiscounted cash flows expected from its use and disposal. Impairments are measured as the amount by which the carrying amount of the asset or asset group exceeds its fair value, as determined using a discounted cash flows approach when quoted market prices are not available. |
Leases | Leases: We determine if a contract is a lease at inception or upon acquisition and reevaluate each time a lease contract is amended or otherwise modified. A lease will be classified as an operating lease if it does not meet any of the criteria for a finance lease. Those criteria include the transfer of ownership of the underlying asset by the end of the lease term; an option to purchase the underlying asset that we would be reasonably certain to exercise; the lease term is for the major part of the remaining economic life of the underlying asset; the present value of the sum of the lease payments and any residual value guaranteed by us that is not already reflected in the lease payments equals or exceeds substantially all of the fair value of the underlying asset or if the underlying asset is of such a specialized nature that it is expected to have no alternative use to the lessor at the end of the lease term. The assets and liabilities relating to operating leases are included in operating lease right-of-use assets, accrued expenses, and long-term operating lease liabilities in our consolidated balance sheets. The assets and liabilities relating to finance leases are included in property, plant and equipment, net, accrued expenses and other liabilities in our consolidated balance sheets. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the respective lease commencement date based on the present value of lease payments over the expected lease term. Since our leases do not specify implicit discount rates, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The operating lease ROU asset also includes any initial direct costs and is adjusted for lease incentives and prepaid or accrued rent. The lease term begins on the date when the lessor makes the underlying asset available for use to us, and our expected lease terms include options to extend the lease when it is reasonably certain that we will exercise those options. Lease payments are recognized in the consolidated statements of income and comprehensive income on a straight-line basis over the expected lease term. Leases with an initial term of 12 months or less are not recorded on the balance sheet, with the related lease expense recognized on a straight-line basis over the lease term. Lease and non-lease components of a contract are combined into a single lease component for accounting purposes. one |
Goodwill | Goodwill: We use the acquisition method of accounting for all business combinations, and we evaluate all business combinations for intangible assets that should be recognized apart from goodwill. Goodwill adjustments are recorded for the effect on goodwill of changes to net assets acquired during the measurement period (up to one year from the date of acquisition) for new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date. Goodwill is not amortized, but instead is tested annually for impairment on the last day of fiscal November, or more frequently if events or changes in circumstances indicate the carrying amount may not be recoverable. The test for impairment is performed at the reporting unit level by comparing the reporting unit’s carrying amount to its fair value. Possible impairment in goodwill is first analyzed using qualitative factors such as macroeconomic and market conditions, changing costs and actual and projected performance, amongst others, to determine whether it is more likely than not that the book value of the reporting unit exceeds its fair value. If it is determined more likely than not that the book value exceeds fair value, a quantitative analysis is performed to test for impairment. When quantitative steps are determined necessary, the fair values of the reporting units are estimated through the use of discounted cash flow analysis and market multiples. If the carrying amount exceeds fair value, then goodwill is impaired. Any impairment in goodwill is measured as the excess of the carrying value of goodwill over the fair value. When developing our discounted cash flow analyses, a number of assumptions and estimates are involved to forecast operating cash flows, including future net sales growth, EBITDA margin, benefits from restructuring initiatives, income tax rates, capital spending, business initiatives and working capital changes. These assumptions may vary significantly among the reporting units. Operating cash flow forecasts are based on operating plans for the early years and historical relationships and long-term economic outlooks for our industry in later years. The discount rate is estimated for each specific reporting unit. Due to the many variables inherent in the estimation of a reporting unit’s fair value and the relative size of our recorded goodwill, differences in assumptions may have a material effect on the results of our impairment analyses. In the year ended December 31, 2023, we recorded $33.1 million in goodwill impairment charges in our Europe reporting unit. There were no impairment charges recorded against goodwill in 2022. In 2021, we |
Intangible assets | Intangible assets: Intangible assets with definite lives include customer relationships, patents, system software development and acquired trademarks and tradenames. Definite lived intangible assets are amortized over their estimated useful lives. Information pertaining to the estimated useful lives of intangible assets is as follows: Estimated Useful Life (Years) Estimated Useful Life Customer relationships 10 - 15 Over expected relationship period Patents 10 - 12 Over expected useful life System software development 5 - 15 Over expected useful life Acquired trademarks and tradenames 2 - 10 Over expected useful life Amortizable intangible assets are tested for impairment whenever events or changes in circumstances indicate that the carrying value may be greater than fair value. An impairment loss is recognized when the estimate of undiscounted future cash flows generated by such assets is less than the carrying amount. Measurement of the impairment loss is based on the fair value of the asset. Fair value is measured using discounted cash flows. Indefinite lived intangible assets are not amortized, but instead are tested for impairment annually on the last day of fiscal November, or more frequently if events or circumstances indicate the carrying value may exceed the fair value. |
Income taxes | Income taxes: As a multinational corporation, we are subject to taxation in many jurisdictions and the calculation of our tax liabilities involves dealing with inherent uncertainties in the application of complex tax laws and regulations in various taxing jurisdictions. We assess the income tax positions and record tax liabilities for all years subject to examination based upon our evaluation of the facts, circumstances and information available as of the reporting date. Our global structure required an assessment of the Company’s interpretation and application of tax laws in multiple jurisdictions including the income tax impact of the legal entity ownership structure and intercompany transactions. We use the asset and liability method of accounting for income taxes. Under the asset and liability method, deferred tax assets and liabilities are recognized for the deferred tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities due to a change in tax rates is recognized in income in the period that includes the date of enactment. A valuation allowance is recorded to reduce deferred tax assets to an amount that is anticipated to be realized on a more likely than not basis. We account for uncertain taxes in accordance with ASC 740, "Income Taxes." The initial benefit recognition model follows a two-step approach. First, we evaluate if the tax position is more likely than not of being sustained if audited based solely on the technical merits of the position. Second, we measure the appropriate amount of benefit to recognize. This is calculated as the largest amount of tax benefit that has a greater than 50% likelihood of ultimately being realized upon settlement. Subsequently at each reporting date, the largest amount that has a greater than 50% likelihood of ultimately being realized, based on information available at that date, will be measured and recognized. We recognize interest and penalties related to unrecognized tax benefits within the income tax expense line in the consolidated statements of income and comprehensive income. Accrued interest and penalties are included within the related tax liability line in the consolidated balance sheets. |
Employee future benefits | Employee future benefits: We maintain defined benefit pension plans. Benefits under the plans were frozen or curtailed at various times in the past. Earnings are charged with the cost of benefits earned by employees as services are rendered. The cost reflects management’s best estimates of the pension plans’ expected investment yields, wage and salary escalation, mortality of members, terminations and the ages at which members will retire. Changes in these assumptions could impact future pension expense. Service cost components are recognized within cost of goods sold and non-service cost components are recognized within other (income) expense, net in the consolidated statements of income and comprehensive income. The excess of the net actuarial gain (loss) over 10% of the greater of the benefit obligation or fair value of plan assets at the beginning of the year is amortized over the average remaining service lives of the members. Assets are valued at fair value for the purpose of calculating the expected return on plan assets. Past service costs arising from plan amendments are amortized on a straight-line basis over the average remaining service period of employees active at the date of amendment. When a restructuring of a benefit plan gives rise to both a curtailment and a settlement of obligations, the curtailment is accounted for prior to the settlement. Curtailment gains are offset against unrecognized losses and any excess gains and all curtailment losses are recorded in the period in which the curtailment occurs. |
Restructuring costs | Restructuring costs: Restructuring costs include all salary-related severance benefits that are accrued and expensed when a restructuring plan has been put into place, the plan has received approval from the appropriate level of management and the benefit is probable and reasonably estimable. In addition to salary-related costs, we incur other restructuring costs when facilities are closed or capacity is realigned within the organization. Upon termination of a contract we record liabilities and expenses pursuant to the terms of the relevant agreement. For non-contractual restructuring activities, liabilities and expenses are measured and recorded at fair value in the period in which they are incurred. Restructuring-related costs are presented separately in the consolidated statements of income and comprehensive income whereas non-restructuring severance benefits are charged to cost of goods sold or selling, general and administration expense depending on the nature of the job responsibilities. |
Financial instruments | Financial instruments: We have applied a framework consistent with ASC 820, "Fair Value Measurement and Disclosure," and have disclosed all financial assets and liabilities measured at fair value and non-financial assets and liabilities measured at fair value on a non-recurring basis (at least annually). We classify and disclose assets and liabilities carried at fair value in one of the following three categories: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs that are not corroborated by market data. The estimated fair value of a financial instrument is the amount at which the instrument could be exchanged in a current transaction between willing parties, other than a forced or liquidation sale. These estimates, although based on the relevant market information about the financial instrument, are subjective in nature and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. |
Share based compensation expense | Share based compensation expense: We have a share based compensation plan, which is described in detail in Note 12. We apply the fair value method of accounting using comprehensive valuation models, including the Black-Scholes-Merton option pricing model and the Monte Carlo simulation method, to determine the compensation expense. |
Revenue recognition and Vendor rebates | Revenue recognition:Revenue from the sale of products is recognized when control of the promised goods is transferred to our customers based on the agreed-upon shipping terms, in an amount that reflects the consideration to which we expect to be entitled in exchange for those goods or services. Volume rebates, expected returns, discounts and other incentives to customers are considered variable consideration and we estimate these amounts based on the expected amount to be provided to customers and reduce the revenues we recognize accordingly. Sales taxes and value added taxes assessed by governmental entities are excluded from the measurement of consideration expected to be received. Shipping and handling costs incurred after a customer has taken possession of our goods are treated as a fulfillment cost and are not considered a separate performance obligation. Shipping and other transportation costs charged to customers are recorded in both revenues and cost of goods sold in the consolidated statements of income and comprehensive income.Vendor rebates: We account for cash consideration received from a vendor as a reduction of cost of goods sold and inventory, in the consolidated statements of income and comprehensive income and consolidated balance sheets, respectively. The cash consideration received represents agreed-upon vendor rebates that are earned in the normal course of operations. |
Product warranties | Product warranties:We warrant certain qualitative attributes of our door products. We have recorded provisions for estimated warranty and related costs within accrued expenses on the consolidated balance sheets, based on historical experience and we periodically adjust these provisions to reflect actual experience. |
Advertising costs | Advertising costs:We recognize advertising costs as they are incurred. Advertising costs incurred primarily relate to tradeshows and are included within selling, general and administration expense in the consolidated statements of income and comprehensive income. |
Research and development costs | Research and development costs:We recognize research and development costs as they are incurred. Research and development costs incurred primarily relate to the development of new products and the improvement of manufacturing processes, and are primarily included within cost of goods sold in the consolidated statements of income and comprehensive income. These costs exclude the significant investments in other areas such as advanced automation. Research and development costs were $27.8 million, $21.2 million and $18.4 million in the years ended December 31, 2023, January 1, 2023, and January 2, 2022, respectively. |
Insurance losses and proceeds | Insurance losses and proceeds: All involuntary conversions of property, plant and equipment are recorded as losses within loss (gain) on disposal of property, plant and equipment, which is included within selling, general and administration expense in the consolidated statements of income and comprehensive income and as reductions to property, plant and equipment in the consolidated balance sheets. Any subsequent proceeds received for insured losses of property, plant and equipment are also recorded as gains within loss (gain) on disposal of property, plant and equipment, and are classified as cash flows from investing activities in the consolidated statements of cash flows in the period in which the cash is received. Proceeds received for business interruption recoveries are recorded as a reduction to selling, general and administration expense in the consolidated statements of income and comprehensive income and are classified as cash flows from operating activities in the consolidated statements of cash flows in the period in which an acknowledgment from the insurance carrier of settlement or partial settlement of a non-refundable nature has been presented to us. |
Equity investments | Equity investments: We account for investments in affiliates of between 20% and 50% ownership, over which we have significant influence, using the equity method. We record our share of earnings of the affiliate within other income, net of expense, in the consolidated statements of income and comprehensive income and dividends as a reduction of the investment in the affiliate in the consolidated balance sheets when declared. |
Segment reporting | Segment reporting:Our reportable segments are organized and managed principally by end market: North American Residential, Europe and Architectural. The Corporate & Other category includes unallocated corporate costs and the results of immaterial operating segments that were not aggregated into any reportable segment. In addition to similar economic characteristics we also consider the following factors in determining the reportable segments: the nature of business activities, the management structure directly accountable to our chief operating decision maker for operating and administrative activities, availability of discrete financial information and information presented to the Board of Directors and investors. |
Use of estimates | Use of estimates: The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions which affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of net sales and expenses during the reporting periods. During 2023, there were no material changes in the methods or policies used to establish estimates and assumptions. Actual results may differ from our estimates. |
Business Overview and Signifi_3
Business Overview and Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Property, Plant and Equipment Useful Lives | Depreciation is recorded based on the carrying values of buildings, machinery and equipment using the straight-line method over the estimated useful lives set forth as follows: Useful Life (Years) Buildings 20 - 40 Machinery and equipment Tooling 10 - 25 Machinery and equipment 5 - 25 Molds and dies 20 - 25 Office equipment, fixtures and fittings 3 - 10 Information technology systems 5 - 15 |
Schedule of Useful Lives of Intangible Assets | Definite lived intangible assets are amortized over their estimated useful lives. Information pertaining to the estimated useful lives of intangible assets is as follows: Estimated Useful Life (Years) Estimated Useful Life Customer relationships 10 - 15 Over expected relationship period Patents 10 - 12 Over expected useful life System software development 5 - 15 Over expected useful life Acquired trademarks and tradenames 2 - 10 Over expected useful life |
Schedule of Product Warranty Liability | The rollforward of our warranty provision is as follows for the periods indicated: Year Ended (In thousands) December 31, 2023 January 1, 2023 January 2, 2022 Balance at beginning of period $ 3,881 $ 4,015 $ 4,635 Additions charged to expense 4,792 5,085 4,646 Deductions (4,436) (5,219) (5,266) Balance at end of period $ 4,237 $ 3,881 $ 4,015 |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The allocation of the purchase price to assets acquired and liabilities assumed is as follows: (In thousands) Initial Purchase Price Allocation Cash acquired $ 5,169 Accounts receivable, net 5,584 Inventories, net 39,248 Prepaid expenses and other 957 Property, plant and equipment, net 8,072 Right-of-use asset 16,009 Intangible assets 163,900 Total assets acquired 238,939 Accounts payable and accrued expenses (20,773) Operating lease liability (12,546) Total liabilities assumed (33,319) Goodwill 73,464 Total purchase price $ 279,084 The allocation of the purchase price to assets acquired and liabilities assumed is as follows: (In thousands) Initial Purchase Price Allocation Measurement Period Adjustments Purchase Price Allocation Cash acquired $ 32,501 $ (100) $ 32,401 Accounts receivable, net 7,871 290 8,161 Inventories, net 44,183 35 44,218 Property, plant and equipment, net 54,373 10,520 64,893 Intangible assets 135,800 (7,400) 128,400 Other assets and liabilities, net 2,868 (38) 2,830 Total assets acquired 277,596 3,307 280,903 Accounts payable and accrued expenses (15,088) (190) (15,278) Deferred income taxes (44,345) 849 (43,496) Total liabilities assumed (59,433) 659 (58,774) Goodwill 189,938 (8,780) 181,158 Total purchase price $ 408,101 $ (4,814) $ 403,287 |
Schedule of Finite-Lived Intangible Assets | Intangible assets acquired from the 2023 acquisitions consist of the following: (In thousands, except useful life amounts) Endura Expected Useful Life (Years) Fleetwood Expected Useful Life (Years) Customer relationships $ 108,600 15 $ 112,100 12 Trademarks and trade names 6,600 10 25,200 Indefinite Patents 13,200 12 22,600 10 Backlog — 4,000 1 Total intangible assets acquired $ 128,400 $ 163,900 |
Schedule of Pro Forma Information | The following schedule represents the amounts of net sales and net income (loss) attributable to Masonite from the 2023 acquisitions which have been included in the consolidated statements of income and comprehensive income for the periods indicated subsequent to the acquisition date. Year Ended December 31, 2023 (In thousands) Endura Fleetwood Total 2023 Acquisitions Net sales $ 231,347 $ 16,714 $ 248,061 Net (loss) income attributable to Masonite 11,897 (276) 11,621 Pro Forma Information The following unaudited pro forma financial information represents the consolidated financial information as if the acquisitions had been included in our consolidated results beginning on the first day of the fiscal year prior to the respective acquisition dates. The pro forma results have been calculated after adjusting the results of the acquired entities to remove intercompany transactions and to reflect the additional depreciation, amortization and interest expense that would have been charged assuming the fair value adjustments to property, plant and equipment and intangible assets and the additional debt incurred to fund the acquisition had been applied on the first day of the fiscal year prior to the respective acquisition date, together with the consequential tax effects. The pro forma results do not reflect any cost savings, operating synergies or revenue enhancements that the combined companies may achieve as a result of the acquisition; the costs to combine the companies' operations; or the costs necessary to achieve these costs savings, operating synergies and revenue enhancements. As a result, the pro forma information below does not purport to represent actual results had the acquisition been consummated on the date indicated and it is not necessarily indicative of future results of operations. Year Ended (In thousands, except per share information) December 31, 2023 January 1, 2023 Net sales $ 2,997,450 $ 3,313,374 Net income attributable to Masonite 156,207 215,776 Basic earnings per common share attributable to Masonite $ 7.09 $ 9.58 Diluted earnings per common share attributable to Masonite $ 6.99 $ 9.48 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
Rollforward of Allowance for Doubtful Accounts | The changes in the allowance for doubtful accounts were as follows for the periods indicated: Year Ended (In thousands) December 31, 2023 January 1, 2023 January 2, 2022 Balance at beginning of period $ 2,480 $ 2,087 $ 2,809 Additions charged to expense 1,025 1,062 242 Deductions (428) (669) (964) Balance at end of period $ 3,077 $ 2,480 $ 2,087 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | The amounts of inventory on hand were as follows as of the dates indicated: (In thousands) December 31, 2023 January 1, 2023 Raw materials $ 296,747 $ 320,553 Finished goods 106,919 95,005 Provision for obsolete or aged inventory (12,467) (8,730) Inventories, net $ 391,199 $ 406,828 |
Schedule of inventory provision | The rollforward of our inventory provision is as follows for the periods indicated: Year Ended (In thousands) December 31, 2023 January 1, 2023 January 2, 2022 Balance at beginning of period $ 8,730 $ 6,117 $ 6,305 Additions charged to expense 8,044 7,692 3,402 Deductions (4,307) (5,079) (3,590) Balance at end of period $ 12,467 $ 8,730 $ 6,117 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Amounts of property, plant, and equipment | The carrying amounts of our property, plant and equipment and accumulated depreciation were as follows as of the dates indicated: (In thousands) December 31, 2023 January 1, 2023 Land $ 24,576 $ 21,415 Buildings 258,038 222,340 Machinery and equipment 961,180 837,407 Property, plant and equipment, gross 1,243,794 1,081,162 Accumulated depreciation (495,824) (428,833) Property, plant and equipment, net $ 747,970 $ 652,329 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Lease cost | The following table summarizes the components of lease expense recorded in the consolidated statements of income and comprehensive income for the periods indicated: (In thousands) Year Ended December 31, 2023 January 1, 2023 January 2, 2022 Operating lease expense $ 62,291 $ 49,972 $ 47,263 Finance lease expense Amortization of leased assets 953 1,123 865 Interest on lease liabilities 1,414 1,356 1,443 Total lease expense $ 64,658 $ 52,451 $ 49,571 The following table includes a detail of lease assets and liabilities included in the consolidated balance sheet as of the period indicated: (In thousands) December 31, 2023 January 1, 2023 Operating lease right-of-use assets $ 202,806 $ 160,695 Finance lease right-of-use assets (1) 24,447 25,409 Total lease assets, net $ 227,253 $ 186,104 Current portion of operating lease liabilities $ 32,299 $ 24,372 Long-term operating lease liabilities 186,647 151,242 Long-term finance lease liabilities 29,664 29,561 Total lease liabilities $ 248,610 $ 205,175 ____________ (1) Net of accumulated amortization of $4.5 million and $3.5 million, as of December 31, 2023 , and January 1, 2023 , respectively. The following table is a summary of the weighted-average remaining lease terms and weighted-average discount rates of the Company's leases as of the period indicated: December 31, 2023 January 1, 2023 Weighted-average remaining lease term (years) Operating leases 10.5 11.2 Finance leases 25.6 26.6 Weighted-average discount rate (1) Operating leases 4.9 % 4.3 % Finance leases 4.8 % 4.8 % ____________ (1) Based on the Company's incremental borrowing rate at lease commencement or modification. |
Maturities of operating lease liabilities | As of December 31, 2023, the future minimum lease payments under non-cancelable leases are as follows: (In thousands) Operating Leases Finance Leases Fiscal year: 2024 $ 39,848 $ 1,471 2025 37,365 1,516 2026 30,798 1,693 2027 26,025 1,612 2028 23,253 1,520 Thereafter 128,883 47,607 Total minimum lease payments 286,172 55,419 Less imputed interest (67,226) (25,755) Present value of future lease payments $ 218,946 $ 29,664 |
Maturities of finance lease liabilities | As of December 31, 2023, the future minimum lease payments under non-cancelable leases are as follows: (In thousands) Operating Leases Finance Leases Fiscal year: 2024 $ 39,848 $ 1,471 2025 37,365 1,516 2026 30,798 1,693 2027 26,025 1,612 2028 23,253 1,520 Thereafter 128,883 47,607 Total minimum lease payments 286,172 55,419 Less imputed interest (67,226) (25,755) Present value of future lease payments $ 218,946 $ 29,664 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in carrying amount of goodwill | Changes in the carrying amount of goodwill were as follows as of the dates indicated: (In thousands) North American Residential Europe Total January 2, 2022 $ 9,893 $ 67,209 $ 77,102 Foreign exchange fluctuations (19) (7,215) (7,234) January 1, 2023 9,874 59,994 69,868 Goodwill from 2023 acquisitions 254,622 — 254,622 Goodwill impairment — (33,212) (33,212) Foreign exchange fluctuations 8 3,424 3,432 December 31, 2023 $ 264,504 $ 30,206 $ 294,710 |
Cost and accumulated amortized values of intangible assets | The cost and accumulated amortization values of our intangible assets were as follows as of the dates indicated: December 31, 2023 January 1, 2023 (In thousands) Cost Accumulated Amortization Net Book Value Cost Accumulated Amortization Net Book Value Definite life intangible assets: Customer relationships $ 391,646 $ (162,021) $ 229,625 $ 165,700 $ (135,518) $ 30,182 Patents 49,480 (32,304) 17,176 34,776 (29,665) 5,111 Software 61,190 (35,832) 25,358 37,187 (33,900) 3,287 Trademarks and tradenames 39,081 (20,340) 18,741 30,918 (15,827) 15,091 License Rights and Other 10,589 (2,241) 8,348 6,584 (84) 6,500 Total definite life intangible assets 551,986 (252,738) 299,248 275,165 (214,994) 60,171 Indefinite life intangible assets: Trademarks and tradenames 103,693 — 103,693 75,885 — 75,885 Total intangible assets $ 655,679 $ (252,738) $ 402,941 $ 351,050 $ (214,994) $ 136,056 |
Estimated future amortization of intangible assets with definite lives | The estimated future amortization of intangible assets with definite lives as of December 31, 2023, is as follows: (In thousands) Fiscal year: 2024 $ 41,800 2025 38,941 2026 33,457 2027 31,823 2028 23,107 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accrued Expenses [Abstract] | |
Schedule of Accrued Expenses | The details of our accrued expenses were as follows as of the dates indicated: (In thousands) December 31, 2023 January 1, 2023 Accrued payroll $ 81,004 $ 69,224 Accrued rebates 51,457 50,200 Current portion of operating lease liabilities 32,299 24,372 Accrued interest 18,296 16,480 Other accruals 57,420 62,770 Total accrued expenses $ 240,476 $ 223,046 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | (In thousands) December 31, 2023 January 1, 2023 Senior unsecured notes, interest rate of 3.50%, due 2030 $ 375,000 $ 375,000 Senior unsecured notes, interest rate of 5.375%, due 2028 500,000 500,000 Term Loan Facility, interest rate of SOFR plus 2.25%, due 2027 221,875 — Debt issuance costs (9,991) (8,884) Total debt (including current portion) 1,086,884 866,116 Less: debt due within one year (37,500) — Total long-term debt (excluding current portion) $ 1,049,384 $ 866,116 |
Schedule of maturities of long-term debt | The following table summarizes the stated debt maturities and scheduled amortization payments for all outstanding debt as of December 31, 2023: (In thousands) Scheduled Amortization Payments Fiscal year: 2024 $ 37,500 2025 37,500 2026 37,500 2027 109,375 2028 500,000 Thereafter 375,000 Total aggregated principal value $ 1,096,875 |
Share Based Compensation Plans
Share Based Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock appreciation rights award activity | Twelve Months Ended December 31, 2023 Stock Appreciation Rights Aggregate Intrinsic Value (in thousands) Weighted Average Exercise Price Average Remaining Contractual Life (Years) Outstanding, beginning of period 184,205 $ 2,153 $ 74.75 7.0 Granted 30,946 88.99 Exercised (10,429) 281 64.72 Forfeited (4,884) 90.58 Outstanding, end of period 199,838 $ 2,365 $ 77.09 6.4 Exercisable, end of period 142,388 $ 2,365 $ 71.34 5.6 Twelve Months Ended January 1, 2023 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 Forfeited (3,743) 96.15 Outstanding, end of period 184,205 $ 2,153 $ 74.75 7.0 Exercisable, end of period 124,842 $ 2,118 $ 66.14 6.3 Twelve Months Ended January 2, 2022 Stock Appreciation Rights Aggregate Intrinsic Value (in thousands) Weighted Average Exercise Price Average Remaining Contractual Life (Years) Outstanding, beginning of period 207,094 $ 7,409 $ 62.56 7.5 Granted 28,707 107.68 Exercised (69,223) 4,305 57.79 Forfeited (7,853) 82.76 Outstanding, end of period 158,725 $ 7,324 $ 71.81 7.5 Exercisable, end of period 81,474 $ 4,451 $ 63.32 6.9 |
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: 2023 Grants 2022 Grants 2021 Grants SAR value (model conclusion) $ 32.63 $ 26.52 $ 28.08 Risk-free rate 4.1 % 2.0 % 0.8 % Expected dividend yield 0.0 % 0.0 % 0.0 % Expected volatility 28.4 % 26.5 % 25.2 % Expected term (years) 6.0 6.0 6.0 |
Restricted stock units award activity | Year Ended December 31, 2023 January 1, 2023 January 2, 2022 Total Restricted Stock Units Outstanding Weighted Average Grant Date Fair Value Total Restricted Stock Units Outstanding Weighted Average Grant Date Fair Value Total Restricted Stock Units Outstanding Weighted Average Grant Date Fair Value Outstanding, beginning of period 313,753 $ 92.85 291,925 $ 88.66 319,675 $ 68.33 Granted 213,255 89.95 216,774 88.22 142,540 111.02 Delivered (116,598) 93.34 (138,682) 78.51 (116,663) 66.40 Withheld to cover (1) (22,738) (23,319) (24,471) Forfeited (47,648) 91.51 (32,945) 95.83 (29,156) 82.85 Outstanding, end of period 340,024 $ 91.02 313,753 $ 92.85 291,925 $ 88.66 ____________ (1) A portion of the vested RSUs delivered were net share settled to cover statutory requirements for income and other employment taxes. We remit the equivalent cash to the appropriate taxing authorities. These net share settlements had the effect of share repurchases by us as we reduced and retired the number of shares that would have otherwise been issued as a result of the vesting. |
Performance based restricted stock award activity | Year Ended December 31, 2023 January 1, 2023 January 2, 2022 Total Performance Restricted Stock Units Outstanding Weighted Average Grant Date Fair Value Total Performance Restricted Stock Units Outstanding Weighted Average Grant Date Fair Value Total Performance Restricted Stock Units Outstanding Weighted Average Grant Date Fair Value Outstanding, beginning of period 310,678 $ 90.15 150,181 $ 84.47 168,382 $ 67.80 Granted 92,743 104.36 211,251 88.37 59,728 109.25 Performance adjustment (1) 17,139 79.25 25,234 57.19 14,474 63.05 Delivered (63,432) 79.25 (52,265) 57.19 (60,252) 63.05 Withheld to cover (2) (5,224) (11,809) (9,518) Forfeited (32,683) 94.94 (11,914) 94.50 (22,633) 78.20 Outstanding, end of period 319,221 $ 95.55 310,678 $ 90.15 150,181 $ 84.47 ____________ (1) PRSUs 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 PRSUs 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) | 12 Months Ended |
Dec. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Total restructuring costs by plan | The following table summarizes the restructuring charges recorded for the periods indicated: Year Ended December 31, 2023 (In thousands) North American Residential Europe Architectural Corporate & Other Total 2024 Plan $ — $ 158 $ — $ — $ 158 2022 Plan 8,481 — 864 627 9,972 Total Restructuring Costs $ 8,481 $ 158 $ 864 $ 627 $ 10,130 Year Ended January 1, 2023 (In thousands) North American Residential Europe Architectural Corporate & Other Total 2022 Plan $ 2,131 $ — $ — $ — $ 2,131 Other (395) — 79 89 (227) Total Restructuring Costs $ 1,736 $ — $ 79 $ 89 $ 1,904 Year Ended January 2, 2022 (In thousands) North American Residential Europe Architectural Corporate & Other Total Other $ (149) $ — $ 5,165 $ 551 $ 5,567 Total Restructuring Costs $ (149) $ — $ 5,165 $ 551 $ 5,567 Cumulative Amount Incurred Through December 31, 2023 (In thousands) North American Residential Europe Architectural Corporate & Other Total 2024 Plan $ — $ 158 $ — $ — $ 158 2022 Plan 10,612 — 864 627 12,103 Other 8,807 359 8,648 2,707 20,521 Total Restructuring Costs $ 19,419 $ 517 $ 9,512 $ 3,334 $ 32,782 |
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 1, Severance Closure Costs Cash Payments December 31, 2024 Plan $ — $ 158 $ — $ (158) $ — 2022 Plan — 5,657 4,315 (9,722) 250 Total $ — $ 5,815 $ 4,315 $ (9,880) $ 250 (In thousands) January 2, Severance Closure Costs Cash Payments January 1, 2022 Plan $ — $ 143 $ 1,988 $ (2,131) $ — Other 49 (30) (197) 178 — Total $ 49 $ 113 $ 1,791 $ (1,953) $ — (In thousands) January 3, Severance Closure Costs Cash Payments January 2, Other $ 1,783 $ 952 $ 4,615 $ (7,301) $ 49 Total $ 1,783 $ 952 $ 4,615 $ (7,301) $ 49 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | For financial reporting purposes, income before income taxes includes the following components: Year Ended (In thousands) December 31, 2023 January 1, 2023 January 2, 2022 Income before income tax expense: Canada $ 38,602 $ 78,768 $ 44,935 Foreign 123,608 211,429 99,031 Total income before income tax expense $ 162,210 $ 290,197 $ 143,966 |
Income tax expense (benefit) for income taxes | Income tax expense for income taxes consists of the following: Year Ended (In thousands) December 31, 2023 January 1, 2023 January 2, 2022 Current income tax expense: Canada $ 10,870 $ 15,266 $ 9,392 Foreign 42,049 50,463 30,499 Total current income tax expense: 52,919 65,729 39,891 Deferred income tax (benefit) expense: Canada (7,793) 7,931 3,626 Foreign (4,185) (1,907) 1,255 Total deferred income tax (benefit) expense: (11,978) 6,024 4,881 Income tax expense $ 40,941 $ 71,753 $ 44,772 |
Schedule of Effective Income Tax Rate Reconciliation | A summary of the differences between expected income tax expense calculated at the Canadian statutory rate and the reported consolidated income tax expense (benefit) is as follows: Year Ended (In thousands) December 31, 2023 January 1, 2023 January 2, 2022 Income tax expense computed at statutory income tax rate $ 42,386 $ 75,829 $ 38,137 Foreign rate differential (12,456) (10,045) (12,370) Permanent differences (286) (2,012) 3,843 Disposal of subsidiaries — 287 1,651 Income attributable to a permanent establishment 206 (6,517) 2,608 Change in valuation allowance (2,142) 5,202 1,569 Income tax credits (4,606) 2,673 (5,591) Foreign exchange gains (losses) 2,361 (2,271) 677 Change in tax rate (681) 1,120 2,706 Goodwill impairment 7,632 — 11,296 Limitation on executive compensation 2,275 2,273 1,904 Withholding and other taxes 2,286 2,100 1,761 Nondeductible interest 4,486 1,970 — Other (520) 1,144 (3,419) Income tax expense $ 40,941 $ 71,753 $ 44,772 |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities are presented below: Year Ended (In thousands) December 31, 2023 January 1, 2023 Deferred tax assets: Non-capital loss carryforwards $ 27,587 $ 12,525 Capital loss carryforwards 7,697 7,753 Deferred interest expense 8,742 9,052 Accruals and reserves currently not deductible for tax purposes 21,727 20,268 Share based compensation 6,011 4,887 Income tax credits 1,149 872 Lease right-of-use assets 54,659 53,985 Capitalized research and development 6,816 5,732 Other 1,511 2,031 Total deferred tax assets 135,899 117,105 Valuation allowance (12,113) (14,102) Total deferred tax assets, net of valuation allowance 123,786 103,003 Deferred tax liabilities: Plant and equipment (105,668) (86,337) Intangibles (49,615) (21,043) Basis difference in subsidiaries (7,682) (7,469) Unrealized foreign exchange loss 332 1,850 Lease liabilities (50,299) (48,889) Other (4,474) (4,572) Total deferred tax liabilities (217,406) (166,460) Net deferred tax liability $ (93,620) $ (63,457) |
Summary of Valuation Allowance | The following is a rollforward of the valuation allowance for deferred tax assets: Year Ended (In thousands) December 31, 2023 January 1, 2023 January 2, 2022 Balance at beginning of period $ 14,102 $ 10,286 $ 5,970 Additions charged to expense and other 590 10,252 4,473 Deductions (2,579) (6,436) (157) Balance at end of period $ 12,113 $ 14,102 $ 10,286 |
Summary of Operating Loss Carryforwards | We can apply these losses against future taxable income based on the period of expiration as follows: (In thousands) Canada Other Foreign Total 2024-2029 $ — $ 3,376 $ 3,376 2030-2044 74,186 — 74,186 Indefinitely — 30,598 30,598 Total tax losses carried forward $ 74,186 $ 33,974 $ 108,160 |
Schedule of Unrecognized Tax Benefits Roll Forward | The changes to our unrecognized tax benefits were as follows: Year Ended (In thousands) December 31, 2023 January 1, 2023 January 2, 2022 Unrecognized tax benefit at beginning of period $ 7,680 $ 7,592 $ 8,108 Gross increases in tax positions in current period 106 151 103 Gross decreases in tax positions in prior period (488) (173) (108) Gross increases in tax positions in prior period 56 110 — Lapse of statute of limitations (523) — (511) Unrecognized tax benefit at end of period $ 6,831 $ 7,680 $ 7,592 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | Year Ended (In thousands, except share and per share information) December 31, 2023 January 1, 2023 January 2, 2022 Net income attributable to Masonite $ 118,227 $ 214,233 $ 94,501 Shares used in computing basic earnings per share 22,031,168 22,532,722 24,176,846 Effect of dilutive securities: Incremental shares issuable under share compensation plans 314,312 239,743 385,687 Shares used in computing diluted earnings per share 22,345,480 22,772,465 24,562,533 Basic earnings per common share attributable to Masonite $ 5.37 $ 9.51 $ 3.91 Diluted earnings per common share attributable to Masonite $ 5.29 $ 9.41 $ 3.85 Anti-dilutive instruments excluded from diluted earnings per common share 97,805 223,968 28,707 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Certain information with respect to reportable segments is as follows for the periods indicated: Year Ended December 31, 2023 (In thousands) North American Residential Europe Architectural Corporate & Other Total Net sales $ 2,246,492 $ 247,539 $ 337,400 $ 15,410 $ 2,846,841 Intersegment sales (1,610) (571) (13,951) (14) (16,146) Net sales to external customers $ 2,244,882 $ 246,968 $ 323,449 $ 15,396 $ 2,830,695 Adjusted EBITDA $ 440,887 $ 10,709 $ 15,462 $ (48,416) $ 418,642 Depreciation and amortization 73,773 21,279 12,924 16,145 124,121 Interest expense, net — — — 50,822 50,822 Income tax expense — — — 40,941 40,941 Year Ended January 1, 2023 (In thousands) North American Residential Europe Architectural Corporate & Other Total Net sales $ 2,286,098 $ 282,989 $ 323,175 $ 20,293 $ 2,912,555 Intersegment sales (2,456) (2,220) (16,192) — (20,868) Net sales to external customers $ 2,283,642 $ 280,769 $ 306,983 $ 20,293 $ 2,891,687 Adjusted EBITDA $ 461,750 $ 28,774 $ (3,748) $ (40,978) $ 445,798 Depreciation and amortization 42,958 21,061 12,374 11,902 88,295 Interest expense, net — — — 41,331 41,331 Income tax expense — — — 71,753 71,753 Year Ended January 2, 2022 (In thousands) North American Residential Europe Architectural Corporate & Other Total Net sales $ 1,955,424 $ 342,172 $ 303,078 $ 20,014 $ 2,620,688 Intersegment sales (2,526) (7,640) (13,602) — (23,768) Net sales to external customers $ 1,952,898 $ 334,532 $ 289,476 $ 20,014 $ 2,596,920 Adjusted EBITDA $ 374,452 $ 60,624 $ (2,704) $ (19,766) $ 412,606 Depreciation and amortization 39,504 23,825 14,620 14,033 91,982 Interest expense, net — — — 46,123 46,123 Income tax benefit — — — 44,772 44,772 |
Reconciliation of consolidated Adjusted EBITDA to net income (loss) attributable to Masonite | A reconciliation of our consolidated net income attributable to Masonite to Adjusted EBITDA is set forth as follows for the periods indicated: Year Ended (In thousands) December 31, 2023 January 1, 2023 January 2, 2022 Net income attributable to Masonite $ 118,227 $ 214,233 $ 94,501 Plus: Depreciation 91,145 71,168 70,641 Amortization 32,976 17,127 21,341 Share based compensation expense 23,638 21,771 15,959 Loss (gain) on disposal of property, plant and equipment 4,434 (378) 1,316 Restructuring costs 10,130 1,904 5,567 Asset impairment 33,063 — 69,900 Loss on disposal of subsidiaries — 850 8,590 Interest expense, net 50,822 41,331 46,123 Loss on extinguishment of debt — — 13,583 Other (income) expense, net (2,087) (5,001) 15,620 Income tax expense 40,941 71,753 44,772 Other items (1) 12,311 6,829 — Net income attributable to non-controlling interest 3,042 4,211 4,693 Adjusted EBITDA $ 418,642 $ 445,798 $ 412,606 ____________ |
Revenue from External Customers by Products and Services | Sales for the product lines are summarized as follows for the periods indicated: Year Ended (In thousands) December 31, 2023 January 1, 2023 January 2, 2022 Net sales to external customers: Interior products $ 1,647,452 $ 1,871,103 $ 1,654,379 Exterior products 839,716 892,945 813,605 Components 343,527 127,639 128,936 Total $ 2,830,695 $ 2,891,687 $ 2,596,920 |
Revenue from External Customers by Geographic Areas | Net sales information with respect to geographic areas exceeding 10% of consolidated net sales is as follows for the periods indicated: Year Ended (In thousands) December 31, 2023 January 1, 2023 January 2, 2022 Net sales to external customers from facilities in: United States $ 2,247,062 $ 2,153,689 $ 1,776,180 Canada 289,877 395,938 364,179 United Kingdom 229,336 259,944 300,008 Other 64,420 82,116 156,553 Total $ 2,830,695 $ 2,891,687 $ 2,596,920 |
Property, Plant and Equipment by Country | Geographic information regarding property, plant and equipment which exceed 10% of consolidated property, plant and equipment is as follows as of the dates indicated: (In thousands) December 31, 2023 January 1, 2023 United States $ 526,691 $ 443,105 United Kingdom 77,490 58,246 Other (1) 143,789 150,978 Total $ 747,970 $ 652,329 ____________ (1) Except for the United States and United Kingdom, property, plant and equipment in any single country was less than 10% of consolidated property, plant and equipment, net. |
Employee Future Benefits (Table
Employee Future Benefits (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Expected Benefit Payments | As of December 31, 2023, the estimated future benefit payments from the U.K. Pension Plan for the following future periods are set forth as follows: (In thousands) Expected Future Benefit Payments Fiscal year: 2024 $ 1,054 2025 1,198 2026 1,174 2027 1,226 2028 1,301 Thereafter 7,152 Total estimated future benefit payments $ 13,105 |
United States | Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Net Benefit Costs | Information about the U.S. Pension Plan is as follows for the periods indicated: Year Ended (In thousands) December 31, 2023 January 1, 2023 January 2, 2022 Components of net periodic benefit cost: Service cost $ — $ — $ 331 Interest cost — — 1,516 Expected return on assets — — (2,953) Amortization of actuarial net losses — — 1,047 Settlement loss — 23,343 Net pension expense (benefit) $ — $ — $ 23,284 |
Schedule of Assumptions Used | The weighted average actuarial assumptions adopted in measuring our U.S. accrued benefit obligations and costs prior to termination were as follows for the periods indicated: Year Ended December 31, 2023 January 1, 2023 January 2, 2022 Discount rate applied for: Accrued benefit obligation — % — % 2.4 % Net periodic pension cost — % — % 2.4 % Expected long-term rate of return on plan assets — % — % 3.5 % |
United Kingdom | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of AOCL Amounts | Amounts deferred in AOCL is set forth for the periods indicated: Year Ended (In thousands) December 31, 2023 January 1, 2023 Net actuarial loss $ 6,389 $ 7,212 Prior service cost 443 440 Total amount recognized in AOCL, pre-tax $ 6,832 $ 7,652 A reconciliation of the change in AOCL is set forth as follows for the periods indicated: Year Ended (In thousands) December 31, 2023 January 1, 2023 Net actuarial (gain) loss $ (439) $ 4,852 Amortization of: Prior service cost (22) (22) Net actuarial loss from prior years (769) — Translation adjustment 410 (490) Change in AOCL, pre-tax $ (820) $ 4,340 |
United Kingdom | Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Net Benefit Costs | Information about the U.K. Pension Plan is as follows for the periods indicated: Year Ended (In thousands) December 31, 2023 January 1, 2023 January 2, 2022 Components of net periodic benefit cost: Interest cost $ 981 $ 504 $ 366 Expected return on assets (827) (934) (1,292) Amortization of actuarial net losses 791 22 289 Net pension benefit $ 945 $ (408) $ (637) |
Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan | Information with respect to the assets, liabilities and net plan assets (accrued benefit obligation) of the U.K. Pension Plan is as follows for the periods indicated: Year Ended (In thousands) December 31, 2023 January 1, 2023 Pension assets: Fair value of plan assets, beginning of year $ 18,082 $ 33,389 Company contributions 2,087 2,021 Actual return on plan assets 909 (13,071) Benefits paid (958) (1,006) Translation adjustment 1,079 (3,251) Fair value of plan assets, end of year 21,199 18,082 Pension liability Accrued benefit obligation, beginning of year 20,071 33,002 Interest cost 981 504 Actuarial gain (357) (9,153) Benefits paid (958) (1,006) Translation adjustment 1,139 (3,276) Accrued benefit obligation, end of year 20,876 20,071 Net plan assets (accrued benefit obligation), end of year $ 323 $ (1,989) |
Schedule of Allocation of Plan Assets | Information with respect to the amounts and types of securities that are held in the U.K. Pension Plan is set forth as follows for the periods indicated: Year Ended December 31, 2023 January 1, 2023 (In thousands) Amount % of Total Plan Amount % of Total Plan Equity securities $ 4,511 21.3 % $ 3,740 20.7 % Other 16,688 78.7 % 14,342 79.3 % $ 21,199 100.0 % $ 18,082 100.0 % |
Schedule of Assumptions Used | The weighted average actuarial assumptions adopted in measuring our U.K. accrued benefit obligations and costs were as follows for the periods indicated: Year Ended December 31, 2023 January 1, 2023 January 2, 2022 Discount rate applied for: Accrued benefit obligation 4.5 % 4.8 % 1.8 % Net periodic pension cost 4.8 % 1.7 % 1.0 % Expected long-term rate of return on plan assets 4.3 % 3.0 % 4.1 % |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income and Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Schedule of components of accumulated other comprehensive income (loss) | A rollforward of the components of accumulated other comprehensive loss is as follows for the periods indicated: Year Ended (In thousands) December 31, 2023 January 1, 2023 January 2, 2022 Accumulated foreign exchange losses, beginning of period $ (132,001) $ (96,919) $ (93,684) Foreign currency translation gain (loss) 19,148 (36,369) (6,719) Income tax benefit on foreign currency translation gain 9 18 6 Cumulative translation adjustment recognized upon deconsolidation of subsidiaries — 732 3,544 Less: foreign exchange gain (loss) attributable to non-controlling interest 179 (537) 66 Accumulated foreign exchange losses, end of period (113,023) (132,001) (96,919) Accumulated pension and other post-retirement adjustments, beginning of period (10,223) (4,663) (18,379) Pension and other post-retirement adjustments 447 (4,718) 2,250 Income tax benefit (expense) on pension and other post-retirement adjustments 2,003 (858) (437) Amortization of actuarial net losses 805 22 1,336 Income tax expense on amortization of actuarial net losses (201) (6) (258) Pension settlement charges — — 15,654 Income tax expense on pension settlement charges — — (4,829) Accumulated pension and other post-retirement adjustments, end of period (7,169) (10,223) (4,663) Accumulated other comprehensive loss $ (120,192) $ (142,224) $ (101,582) Other comprehensive income (loss), net of tax: $ 22,211 $ (41,179) $ 10,547 Less: other comprehensive income (loss) attributable to non-controlling interest 179 (537) 66 Other comprehensive income (loss) attributable to Masonite $ 22,032 $ (40,642) $ 10,481 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Supplemental Cash Flow Elements [Abstract] | |
Cash and non-cash transactions | Certain cash and non-cash transactions were as follows for the periods indicated: Year Ended (In thousands) December 31, 2023 January 1, 2023 January 2, 2022 Transactions involving cash: Interest paid $ 57,719 $ 41,846 $ 42,703 Interest received 12,595 2,783 250 Income taxes paid 77,135 77,500 40,506 Income tax refunds 4,560 1,596 875 Cash paid for operating lease liabilities 37,643 33,451 29,886 Cash paid for finance lease liabilities 1,414 1,359 1,470 Non-cash transactions from operating activities: Right-of-use assets acquired under operating leases 68,902 9,307 49,703 Holdback of portion of Endura purchase payable 18,000 — — |
Schedule of cash and cash equivalents | The following reconciles total cash, cash equivalents and restricted cash as of the dates indicated: December 31, 2023 January 1, 2023 Cash and cash equivalents $ 137,414 $ 296,922 Restricted cash 11,926 11,999 Total cash, cash equivalents and restricted cash $ 149,340 $ 308,921 |
Variable Interest Entity (Table
Variable Interest Entity (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Consolidated results of the VIE | Our net cumulative investment in the VIE was comprised of the following as of the dates indicated: (In thousands) December 31, 2023 January 1, 2023 Current assets $ 7,837 $ 5,699 Property, plant and equipment, net 7,652 8,056 Long-term deferred income taxes 544 1,170 Other assets 4,523 4,067 Current liabilities (1,807) (1,396) Other long-term liabilities (431) (4) Non-controlling interest (4,028) (3,229) Net assets of the VIE consolidated by Masonite $ 14,290 $ 14,363 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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: December 31, 2023 January 1, 2023 (In thousands) Fair Value Carrying Value Fair Value Carrying Value 3.50% senior unsecured notes due 2030 $ 324,956 $ 371,679 $ 303,870 $ 371,136 5.375% senior unsecured notes due 2028 $ 482,285 $ 496,609 $ 462,495 $ 495,868 |
Business Overview and Signifi_4
Business Overview and Significant Accounting Policies (Business Overview and Significant Accounting Policies) (Details) | 12 Months Ended | ||
Dec. 31, 2023 USD ($) employee leaseOption facility country | Jan. 01, 2023 USD ($) | Jan. 02, 2022 USD ($) | |
Property, Plant and Equipment [Line Items] | |||
Manufacturing locations | facility | 64 | ||
Number of countries | country | 7 | ||
Number of employees | employee | 10,000 | ||
Number of union employees | employee | 2,200 | ||
Amount drawn on letters of credit | $ 0 | $ 0 | |
Asset impairment | 33,063,000 | 0 | $ 69,900,000 |
Advertising costs | 20,000,000 | 16,900,000 | 14,200,000 |
Research and development costs | $ 27,800,000 | 21,200,000 | 18,400,000 |
North America | Number of Employees, Geographic Area | Unionized Employees Concentration Risk | |||
Property, Plant and Equipment [Line Items] | |||
Concentration risk, percentage | 85% | ||
Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Lease renewal options | leaseOption | 1 | ||
Lease renewal term | 1 year | ||
Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Lease renewal options | leaseOption | 4 | ||
Lease renewal term | 10 years | ||
Buildings | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful lives of property, plant and equipment | 20 years | ||
Buildings | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful lives of property, plant and equipment | 40 years | ||
Tooling | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful lives of property, plant and equipment | 10 years | ||
Tooling | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful lives of property, plant and equipment | 25 years | ||
Machinery and equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful lives of property, plant and equipment | 5 years | ||
Machinery and equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful lives of property, plant and equipment | 25 years | ||
Molds and Dies | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful lives of property, plant and equipment | 20 years | ||
Molds and Dies | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful lives of property, plant and equipment | 25 years | ||
Office Equipment, Fixtures and Fittings | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful lives of property, plant and equipment | 3 years | ||
Office Equipment, Fixtures and Fittings | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful lives of property, plant and equipment | 10 years | ||
Information Technology Systems | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful lives of property, plant and equipment | 5 years | ||
Information Technology Systems | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful lives of property, plant and equipment | 15 years | ||
Architectural | |||
Property, Plant and Equipment [Line Items] | |||
Asset impairment | 10,400,000 | $ 59,500,000 | |
Customer relationships | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful lives of finite-lived intangible assets | 10 years | ||
Customer relationships | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful lives of finite-lived intangible assets | 15 years | ||
Patents | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful lives of finite-lived intangible assets | 10 years | ||
Patents | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful lives of finite-lived intangible assets | 12 years | ||
System software development | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful lives of finite-lived intangible assets | 5 years | ||
System software development | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful lives of finite-lived intangible assets | 15 years | ||
Acquired trademarks and tradenames | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful lives of finite-lived intangible assets | 2 years | ||
Acquired trademarks and tradenames | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful lives of finite-lived intangible assets | 10 years | ||
Standby Letters of Credit | |||
Property, Plant and Equipment [Line Items] | |||
Maximum borrowing capacity | $ 2,000,000 | $ 2,100,000 |
Business Overview and Signifi_5
Business Overview and Significant Accounting Policies (Product Warranty Rollforward) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Warranty Provision [Rollforward] | |||
Balance at beginning of period | $ 3,881 | $ 4,015 | $ 4,635 |
Additions charged to expense | 4,792 | 5,085 | 4,646 |
Deductions | (4,436) | (5,219) | (5,266) |
Balance at end of period | $ 4,237 | $ 3,881 | $ 4,015 |
Acquisitions and Divestitures_2
Acquisitions and Divestitures (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Oct. 19, 2023 | Jun. 14, 2021 | Jan. 01, 2023 | Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | Jan. 03, 2023 | |
Business Acquisition [Line Items] | |||||||
Obligation for holdback from purchase payable | $ 0 | $ 0 | |||||
Goodwill | $ 69,868 | $ 294,710 | 69,868 | ||||
Loss on disposal of subsidiaries | 0 | 850 | 8,590 | ||||
Deconsolidation, Gain (Loss), Amount | (900) | 0 | $ (850) | $ (8,590) | |||
Turkey Business | |||||||
Business Acquisition [Line Items] | |||||||
Translation adjustment functional to reporting currency, net of tax, period increase (decrease) | 700 | ||||||
Gain (loss) on write-off of assets and other professional fees | $ 200 | ||||||
Czech Business | |||||||
Business Acquisition [Line Items] | |||||||
Loss on disposal of subsidiaries | $ 8,600 | ||||||
Translation adjustment functional to reporting currency, net of tax, period increase (decrease) | 3,500 | ||||||
Gain (loss) on write-off of assets and other professional fees | 5,100 | ||||||
Consideration for the sale of subsidiaries, net of cash disposed | $ 7,000 | ||||||
Fleetwood | |||||||
Business Acquisition [Line Items] | |||||||
Total purchase price | $ 279,084 | ||||||
Obligation for holdback from purchase payable | 26,200 | ||||||
Goodwill | 73,464 | ||||||
Accounts receivable, net | $ 5,584 | ||||||
Endura | |||||||
Business Acquisition [Line Items] | |||||||
Total purchase price | 403,287 | $ 408,101 | |||||
Obligation for holdback from purchase payable | 18,000 | ||||||
Goodwill | 181,158 | 189,938 | |||||
Accounts receivable, net | $ 8,161 | $ 7,871 | |||||
Acquired equity interests, percent | 100% | ||||||
Gross contractual value of acquired trade receivables | $ 8,300 |
Acquisitions and Divestitures_3
Acquisitions and Divestitures (Schedule of Recognized Identified Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Oct. 19, 2023 | Jan. 03, 2023 | Dec. 31, 2023 | Jan. 01, 2023 | |
Purchase Price Allocation | ||||
Goodwill | $ 294,710 | $ 69,868 | ||
Fleetwood | ||||
Purchase Price Allocation | ||||
Cash acquired | $ 5,169 | |||
Accounts receivable, net | 5,584 | |||
Inventories, net | 39,248 | |||
Prepaid expenses and other | 957 | |||
Property, plant and equipment, net | 8,072 | |||
Right-of-use asset | 16,009 | |||
Intangible assets | 163,900 | |||
Total assets acquired | 238,939 | |||
Accounts payable and accrued expenses | (20,773) | |||
Operating lease liability | (12,546) | |||
Total liabilities assumed | (33,319) | |||
Goodwill | 73,464 | |||
Total purchase price | 279,084 | |||
Measurement Period Adjustments | ||||
Business combination, consideration transferred | $ 279,100 | |||
Endura | ||||
Purchase Price Allocation | ||||
Cash acquired | $ 32,501 | 32,401 | ||
Accounts receivable, net | 7,871 | 8,161 | ||
Inventories, net | 44,183 | 44,218 | ||
Property, plant and equipment, net | 54,373 | 64,893 | ||
Intangible assets | 135,800 | 128,400 | ||
Other assets and liabilities, net | 2,868 | 2,830 | ||
Total assets acquired | 277,596 | 280,903 | ||
Accounts payable and accrued expenses | (15,088) | (15,278) | ||
Deferred income taxes | (44,345) | (43,496) | ||
Total liabilities assumed | (59,433) | (58,774) | ||
Goodwill | 189,938 | 181,158 | ||
Total purchase price | 408,101 | 403,287 | ||
Measurement Period Adjustments | ||||
Cash acquired | (100) | |||
Accounts receivable, net | 290 | |||
Inventories, net | 35 | |||
Property, plant and equipment, net | 10,520 | |||
Intangible assets | (7,400) | |||
Other assets and liabilities, net | (38) | |||
Total assets acquired | 3,307 | |||
Accounts payable and accrued expenses | (190) | |||
Deferred income taxes | 849 | |||
Total liabilities assumed | 659 | |||
Goodwill | (8,780) | |||
Total purchase price | $ (4,814) | |||
Business combination, consideration transferred | $ 403,300 |
Acquisitions and Divestitures_4
Acquisitions and Divestitures (Schedule of Finite-Lived Intangible Assets) (Details) - USD ($) $ in Thousands | Oct. 19, 2023 | Jan. 03, 2023 |
Endura | ||
Business Acquisition [Line Items] | ||
Fair value | $ 128,400 | |
Endura | Customer relationships | ||
Business Acquisition [Line Items] | ||
Fair value | $ 108,600 | |
Expected useful life | 15 years | |
Endura | Acquired trademarks and tradenames | ||
Business Acquisition [Line Items] | ||
Fair value | $ 6,600 | |
Expected useful life | 10 years | |
Endura | Patents | ||
Business Acquisition [Line Items] | ||
Fair value | $ 13,200 | |
Expected useful life | 12 years | |
Endura | Backlog | ||
Business Acquisition [Line Items] | ||
Fair value | $ 0 | |
Fleetwood | ||
Business Acquisition [Line Items] | ||
Fair value | $ 163,900 | |
Fleetwood | Customer relationships | ||
Business Acquisition [Line Items] | ||
Fair value | $ 112,100 | |
Expected useful life | 12 years | |
Fleetwood | Acquired trademarks and tradenames | ||
Business Acquisition [Line Items] | ||
Fair value | $ 25,200 | |
Fleetwood | Patents | ||
Business Acquisition [Line Items] | ||
Fair value | $ 22,600 | |
Expected useful life | 10 years | |
Fleetwood | Backlog | ||
Business Acquisition [Line Items] | ||
Fair value | $ 4,000 | |
Expected useful life | 1 year |
Acquisitions and Divestitures_5
Acquisitions and Divestitures (Schedule of Pro Forma Information) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Jan. 01, 2023 | |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||
Net sales | $ 248,061 | |
Net (loss) income attributable to Masonite | 11,621 | |
Pro Forma Information | ||
Net sales | 2,997,450 | $ 3,313,374 |
Net income attributable to Masonite | $ 156,207 | $ 215,776 |
Basic earnings per common share attributable to Masonite (in dollars per share) | $ 7.09 | $ 9.58 |
Diluted earnings per common share attributable to Masonite (in dollars per share) | $ 6.99 | $ 9.48 |
Endura | ||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||
Net sales | $ 231,347 | |
Net (loss) income attributable to Masonite | 11,897 | |
Fleetwood | ||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||
Net sales | 16,714 | |
Net (loss) income attributable to Masonite | $ (276) |
Accounts Receivable (Details)
Accounts Receivable (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 USD ($) Customer | Jan. 01, 2023 USD ($) Customer | Jan. 02, 2022 USD ($) | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of period | $ 2,480 | $ 2,087 | $ 2,809 |
Additions charged to expense | 1,025 | 1,062 | 242 |
Deductions | (428) | (669) | (964) |
Balance at end of period | $ 3,077 | $ 2,480 | $ 2,087 |
Accounts Receivable | Customer Concentration Risk | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Concentration risk, customers | Customer | 10 | 10 | |
Ten Largest Customers | Accounts Receivable | Customer Concentration Risk | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Concentration risk, percent (greater than for Home Depot) | 65.20% | 62.30% | |
The Home Depot, Inc. | Accounts Receivable | Customer Concentration Risk | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Concentration risk, percent (greater than for Home Depot) | 10% | 10% | |
Lowe's Companies, Inc. | Accounts Receivable | Customer Concentration Risk | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Concentration risk, percent (greater than for Home Depot) | 10% |
Inventories - Inventory on Hand
Inventories - Inventory on Hand (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | Jan. 03, 2021 |
Inventory Disclosure [Abstract] | ||||
Raw materials | $ 296,747 | $ 320,553 | ||
Finished goods | 106,919 | 95,005 | ||
Provision for obsolete or aged inventory | (12,467) | (8,730) | $ (6,117) | $ (6,305) |
Inventories, net | $ 391,199 | $ 406,828 |
Inventories Inventory Provision
Inventories Inventory Provision (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Inventory Valuation [Roll Forward] | |||
Balance at beginning of period | $ 8,730 | $ 6,117 | $ 6,305 |
Additions charged to expense | 8,044 | 7,692 | 3,402 |
Deductions | (4,307) | (5,079) | (3,590) |
Balance at end of period | $ 12,467 | $ 8,730 | $ 6,117 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Jan. 01, 2023 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 1,243,794 | $ 1,081,162 |
Accumulated depreciation | (495,824) | (428,833) |
Property, plant and equipment, net | 747,970 | 652,329 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 24,576 | 21,415 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 258,038 | 222,340 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 961,180 | $ 837,407 |
Property, Plant and Equipment_3
Property, Plant and Equipment (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation | $ 91,145 | $ 71,168 | $ 70,641 |
Leases - Lease Costs (Details)
Leases - Lease Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Lease, Cost [Abstract] | |||
Operating lease expense | $ 62,291 | $ 49,972 | $ 47,263 |
Amortization of leased assets | 953 | 1,123 | 865 |
Interest on lease liabilities | 1,414 | 1,356 | 1,443 |
Total lease expense | $ 64,658 | $ 52,451 | $ 49,571 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Jan. 01, 2023 |
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 202,806 | $ 160,695 |
Finance lease right-of-use asset | 24,447 | 25,409 |
Right-of-use Assets | 227,253 | 186,104 |
Current portion of operating lease liabilities | 32,299 | 24,372 |
Long-term operating lease liabilities | 186,647 | 151,242 |
Long-term finance lease liabilities | 29,664 | 29,561 |
Total lease liabilities | $ 248,610 | $ 205,175 |
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Property, plant and equipment, net | Property, plant and equipment, net |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accrued expenses | Accrued expenses |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other liabilities | Other liabilities |
Finance lease, accumulated amortization | $ 4,500 | $ 3,500 |
Operating lease weighted average remaining lease term | 10 years 6 months | 11 years 2 months 12 days |
Finance lease, weighted average remaining lease term | 25 years 7 months 6 days | 26 years 7 months 6 days |
Operating lease weighted average discount rate | 4.90% | 4.30% |
Finance lease weighted average discount rate percent | 4.80% | 4.80% |
Leases - Maturities of Operatin
Leases - Maturities of Operating and Finance Lease Liabilities (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Operating Leases | |
2024 | $ 39,848 |
2025 | 37,365 |
2026 | 30,798 |
2027 | 26,025 |
2028 | 23,253 |
Thereafter | 128,883 |
Total minimum lease payments | 286,172 |
Less imputed interest | (67,226) |
Present value of future lease payments | 218,946 |
Finance Leases | |
2024 | 1,471 |
2025 | 1,516 |
2026 | 1,693 |
2027 | 1,612 |
2028 | 1,520 |
Thereafter | 47,607 |
Total undiscounted lease payments | 55,419 |
Less imputed interest | (25,755) |
Total | $ 29,664 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Changes in Carrying Amount of Goodwill) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Jan. 01, 2023 | |
Goodwill [Roll Forward] | ||
Goodwill, beginning | $ 69,868 | |
Goodwill, ending | 294,710 | $ 69,868 |
Operating Segments | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning | 69,868 | 77,102 |
Goodwill from acquisitions | 254,622 | |
Goodwill impairment | (33,212) | |
Foreign exchange fluctuations | 3,432 | (7,234) |
Goodwill, ending | 294,710 | 69,868 |
Operating Segments | North American Residential | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning | 9,874 | 9,893 |
Goodwill from acquisitions | 254,622 | |
Goodwill impairment | 0 | |
Foreign exchange fluctuations | 8 | (19) |
Goodwill, ending | 264,504 | 9,874 |
Operating Segments | Europe | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning | 59,994 | 67,209 |
Goodwill from acquisitions | 0 | |
Goodwill impairment | (33,212) | |
Foreign exchange fluctuations | 3,424 | (7,215) |
Goodwill, ending | $ 30,206 | $ 59,994 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Goodwill [Line Items] | |||
Goodwill | $ 294,710 | $ 69,868 | |
Amortization of intangible assets | 31,400 | 15,800 | $ 20,200 |
Architectural | |||
Goodwill [Line Items] | |||
Goodwill | 0 | ||
Goodwill impairment | 59,500 | ||
Operating Segments | |||
Goodwill [Line Items] | |||
Goodwill from acquisitions | 254,622 | ||
Goodwill | 294,710 | 69,868 | 77,102 |
Goodwill impairment | 33,212 | ||
Operating Segments | North American Residential | |||
Goodwill [Line Items] | |||
Goodwill from acquisitions | 254,622 | ||
Goodwill | 264,504 | 9,874 | 9,893 |
Goodwill impairment | 0 | ||
Operating Segments | Europe | |||
Goodwill [Line Items] | |||
Goodwill from acquisitions | 0 | ||
Goodwill | 30,206 | 59,994 | 67,209 |
Goodwill, excluding foreign exchange fluctuations | 26,800 | ||
Goodwill impairment | $ 33,212 | ||
Operating Segments | Architectural | |||
Goodwill [Line Items] | |||
Goodwill | $ 0 | 59,500 | |
Goodwill impairment | $ 59,500 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets (Cost and Accumulated Amortized Values) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Jan. 01, 2023 |
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Cost | $ 551,986 | $ 275,165 |
Accumulated Amortization | (252,738) | (214,994) |
Net Book Value | 299,248 | 60,171 |
Total intangible assets, gross | 655,679 | 351,050 |
Intangible Assets, Net (Excluding Goodwill) | 402,941 | 136,056 |
Customer relationships | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Cost | 391,646 | 165,700 |
Accumulated Amortization | (162,021) | (135,518) |
Net Book Value | 229,625 | 30,182 |
Patents | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Cost | 49,480 | 34,776 |
Accumulated Amortization | (32,304) | (29,665) |
Net Book Value | 17,176 | 5,111 |
Software | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Cost | 61,190 | 37,187 |
Accumulated Amortization | (35,832) | (33,900) |
Net Book Value | 25,358 | 3,287 |
Trademarks and tradenames | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Cost | 39,081 | 30,918 |
Accumulated Amortization | (20,340) | (15,827) |
Net Book Value | 18,741 | 15,091 |
License Rights and Other | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Cost | 10,589 | 6,584 |
Accumulated Amortization | (2,241) | (84) |
Net Book Value | 8,348 | 6,500 |
Acquired trademarks and tradenames | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets, gross | $ 103,693 | $ 75,885 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets (Estimated Future Amortization of Intangible Assets) (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2024 | $ 41,800 |
2025 | 38,941 |
2026 | 33,457 |
2027 | 31,823 |
2028 | $ 23,107 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Jan. 01, 2023 |
Accrued Expenses [Abstract] | ||
Accrued payroll | $ 81,004 | $ 69,224 |
Accrued rebates | 51,457 | 50,200 |
Current portion of operating lease liabilities | 32,299 | 24,372 |
Accrued interest | 18,296 | 16,480 |
Other accruals | 57,420 | 62,770 |
Total accrued expenses | $ 240,476 | $ 223,046 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Total accrued expenses | Total accrued expenses |
Long-Term Debt (Schedule of Lon
Long-Term Debt (Schedule of Long-term Debt) (Details) - USD ($) $ in Thousands | Dec. 13, 2022 | Dec. 31, 2023 | Jan. 01, 2023 | Jul. 26, 2021 | Jul. 25, 2019 |
Debt Instrument [Line Items] | |||||
Outstanding debt | $ 1,096,875 | ||||
Debt issuance costs | (9,991) | $ (8,884) | |||
Total debt (including current portion) | 1,086,884 | 866,116 | |||
Less: debt due within one year | (37,500) | 0 | |||
Total long-term debt (excluding current portion) | 1,049,384 | 866,116 | |||
Senior Notes Due 2030 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Outstanding debt | 375,000 | 375,000 | |||
Interest rate stated percentage | 3.50% | ||||
Senior Notes Due 2028 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Outstanding debt | $ 500,000 | 500,000 | |||
Interest rate stated percentage | 5.375% | 5.375% | |||
Term Loan Credit Agreement | Line of Credit | Secured Debt | |||||
Debt Instrument [Line Items] | |||||
Outstanding debt | $ 221,875 | $ 0 | |||
Term Loan Credit Agreement | Line of Credit | Secured Debt | SOFR | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 2.25% |
Long-Term Debt (Narrative) (Det
Long-Term Debt (Narrative) (Details) - USD ($) | 12 Months Ended | ||||||||||
Dec. 13, 2022 | Dec. 12, 2022 | Jul. 26, 2021 | Aug. 10, 2019 | Jul. 25, 2019 | Aug. 27, 2018 | Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | Oct. 28, 2022 | Jan. 31, 2019 | |
Debt Instrument [Line Items] | |||||||||||
Proceeds from issuance of long-term debt | $ 250,000,000 | $ 0 | $ 375,000,000 | ||||||||
Loss on extinguishment of debt | $ 0 | 0 | 13,583,000 | ||||||||
Senior Notes Due 2028 | Debt Instrument, Redemption, Period One | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Redemption price, percentage | 101% | ||||||||||
Senior Notes Due 2028 | Debt Instrument, Redemption, Period Two | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Redemption price, percentage | 100% | ||||||||||
ABL Facility 2020 | Revolving Credit Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Maximum borrowing capacity | $ 250,000,000 | ||||||||||
Line of credit, amount outstanding | $ 0 | ||||||||||
Maximum borrowing capacity, accordion feature, increase limit | $ 100,000,000 | ||||||||||
Maximum borrowing capacity, accordion feature, higher borrowing capacity option | $ 350,000,000 | ||||||||||
Maximum pro forma secured leverage ratio | 4.5 | ||||||||||
Remaining borrowing capacity | $ 273,600,000 | ||||||||||
ABL Facility 2020 | Revolving Credit Facility | Minimum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Unutilized commitment fee percentage | 0.25% | ||||||||||
ABL Facility 2020 | Revolving Credit Facility | SOFR | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread on variable rate | 0.10% | ||||||||||
ABL Facility 2020 | Revolving Credit Facility | Base Rate | Minimum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread on variable rate | 0.25% | ||||||||||
ABL Facility 2020 | Revolving Credit Facility | Base Rate | Maximum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread on variable rate | 0.50% | ||||||||||
ABL Facility 2020 | Revolving Credit Facility | Eurodollar Rate | Minimum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread on variable rate | 1.25% | ||||||||||
ABL Facility 2020 | Revolving Credit Facility | Eurodollar Rate | Maximum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread on variable rate | 1.50% | ||||||||||
Senior Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest expense | $ 55,700,000 | $ 41,300,000 | $ 43,900,000 | ||||||||
Senior Notes | Senior Notes Due 2030 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate stated percentage | 3.50% | ||||||||||
Aggregate principal of debt issued | $ 375,000,000 | ||||||||||
Proceeds from issuance of long-term debt | 370,300,000 | ||||||||||
Debt issuance cost | 4,700,000 | ||||||||||
Senior Notes | Senior Notes Due 2026 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate stated percentage | 5.75% | ||||||||||
Aggregate principal of debt issued | $ 300,000,000 | ||||||||||
Proceeds from issuance of long-term debt | 295,700,000 | ||||||||||
Debt issuance cost | $ 4,300,000 | ||||||||||
Extinguishment of debt, amount | 300,000,000 | ||||||||||
Extinguishment of debt, premium paid | 10,800,000 | ||||||||||
Write off of debt issuance costs | 2,800,000 | ||||||||||
Loss on extinguishment of debt | $ 13,600,000 | ||||||||||
Senior Notes | Senior Notes Due 2028 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate stated percentage | 5.375% | 5.375% | |||||||||
Aggregate principal of debt issued | $ 500,000,000 | ||||||||||
Proceeds from issuance of long-term debt | 493,300,000 | ||||||||||
Debt issuance cost | $ 6,700,000 | ||||||||||
Senior Notes | Senior Notes Due 2023 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Extinguishment of debt, amount | $ 500,000,000 | ||||||||||
Line of Credit | Term Loan Credit Agreement | Secured Debt | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Aggregate principal of debt issued | $ 250,000,000 | ||||||||||
Debt instrument, term | 5 years | ||||||||||
Maximum borrowing capacity | $ 250,000,000 | ||||||||||
Annual principal payment, percentage | 15% | ||||||||||
Unused borrowing capacity, fee, percentage | 0.25% | ||||||||||
Debt instrument, leverage ratio | 450% | ||||||||||
Line of credit, amount outstanding | $ 0 | ||||||||||
Line of Credit | Term Loan Credit Agreement | Secured Debt | SOFR | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread on variable rate | 2.25% | ||||||||||
Line of Credit | Term Loan Credit Agreement | Secured Debt | Adjusted Base Rate | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread on variable rate | 0.50% | ||||||||||
Line of Credit | Term Loan Credit Agreement | Secured Debt | Premium Adjusted Term Secured Overnight Financing Rate (SOFR) | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread on variable rate | 1% | ||||||||||
Line of Credit | Term Loan Credit Agreement | Secured Debt | Base Rate | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread on variable rate | 1% | ||||||||||
Line of Credit | Term Loan Credit Agreement | Secured Debt | Applicable Margin | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread on variable rate | 1.25% |
Long-Term Debt (Schedule of Mat
Long-Term Debt (Schedule of Maturities of Long-term Debt) (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Fiscal year: | |
2024 | $ 37,500 |
2025 | 37,500 |
2026 | 37,500 |
2027 | 109,375 |
2028 | 500,000 |
Thereafter | 375,000 |
Long-term debt | $ 1,096,875 |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Nov. 03, 2023 | Dec. 31, 2023 | |
Selling, General and Administrative Expenses | ||
Loss Contingencies [Line Items] | ||
Legal reserve | $ 0.9 | |
Antitrust Litigation - Canada | ||
Loss Contingencies [Line Items] | ||
Litigation settlement awarded to other parties | $ 0.9 |
Share Based Compensation Plan_2
Share Based Compensation Plans - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Mar. 10, 2021 | Jul. 12, 2012 | Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation | $ 23,638 | $ 21,771 | $ 15,959 | ||
Share based compensation unrecognized | $ 24,800 | ||||
Weighted average remaining requisite service period | 1 year 6 months | ||||
Deferred compensation liability | $ 8,400 | 7,200 | |||
Deferred compensation asset | $ 7,500 | 7,000 | |||
2012 Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Plan term | 10 years | ||||
2012 Plan | Common Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock available for future issuance (in shares) | 773,165 | ||||
2021 Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock incentive plan, period in force | 10 years | ||||
2021 Plan | Common Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Equity awards not to exceed (in shares) | 880,000 | ||||
Stock Appreciation Rights (SARs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Plan term | 10 years | ||||
Award vesting period | 3 years | ||||
Fair value of shares vested | $ 700 | $ 800 | $ 800 | ||
Award granted, fair value | $ 1,000 | ||||
Average requisite service period | 2 years | ||||
Restricted Stock Units (RSUs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Fair value of shares vested | $ 13,000 | ||||
Award granted, fair value | $ 19,200 | ||||
Average requisite service period | 2 years | ||||
Units vested | 139,336 | ||||
Performance-based Restricted Stock Units (PRSUs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 3 years | ||||
Fair value of shares vested | $ 5,400 | ||||
Award granted, fair value | $ 9,700 | ||||
Average requisite service period | 3 years | ||||
Units vested | 68,656 | ||||
Service Requirements Only | Restricted Stock Units (RSUs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting requirements (percent) | 70% | ||||
Service and Performance Requirements | Restricted Stock Units (RSUs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting requirements (percent) | 30% |
Share Based Compensation Plan_3
Share Based Compensation Plans (SARs) (Details) - Stock Appreciation Rights (SARs) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | Jan. 03, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Outstanding, beginning of period, shares | 184,205 | 158,725 | 207,094 | |
Granted, shares | 30,946 | 33,803 | 28,707 | |
Exercised, shares | (10,429) | (4,580) | (69,223) | |
Forfeited, shares | (4,884) | (3,743) | (7,853) | |
Outstanding, end of period, shares | 199,838 | 184,205 | 158,725 | 207,094 |
Exercisable, end of period, shares | 142,388 | 124,842 | 81,474 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Aggregate Intrinsic Value & Average Remaining Contractual Life [Abstract] | ||||
Outstanding, beginning of period, aggregate intrinsic value | $ 2,153 | $ 7,324 | $ 7,409 | |
Exercised, aggregate intrinsic value | 281 | 169 | 4,305 | |
Outstanding, end period, aggregate intrinsic value | 2,365 | 2,153 | 7,324 | $ 7,409 |
Exercisable, end of period, aggregate intrinsic value | $ 2,365 | $ 2,118 | $ 4,451 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||||
Outstanding, beginning of period, weighted average exercise price | $ 74.75 | $ 71.81 | $ 62.56 | |
Granted, weighted average exercise price | 88.99 | 88.43 | 107.68 | |
Exercised, weighted average exercise price | 64.72 | 56.51 | 57.79 | |
Forfeited, weighted average exercise price | 90.58 | 96.15 | 82.76 | |
Outstanding, end of period, weighted average exercise price | 77.09 | 74.75 | 71.81 | $ 62.56 |
Exercisable, end of period, weighted average exercise price | $ 71.34 | $ 66.14 | $ 63.32 | |
Outstanding, beginning of period, weighted average remaining contractual term | 6 years 4 months 24 days | 7 years | 7 years 6 months | 7 years 6 months |
Outstanding, end of period, weighted average remaining contractual term | 6 years 4 months 24 days | 7 years | 7 years 6 months | 7 years 6 months |
Exercisable, end of period, weighted average remaining contractual term | 5 years 7 months 6 days | 6 years 3 months 18 days | 6 years 10 months 24 days |
Share Based Compensation Plan_4
Share Based Compensation Plans (Weighted Average Grant Date Assumptions) (Details) - Stock Appreciation Rights (SARs) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
SAR value (model conclusion) | $ 32.63 | $ 26.52 | $ 28.08 |
Risk-free rate | 4.10% | 2% | 0.80% |
Expected dividend yield | 0% | 0% | 0% |
Expected volatility | 28.40% | 26.50% | 25.20% |
Expected term (years) | 6 years | 6 years | 6 years |
Share Based Compensation Plan_5
Share Based Compensation Plans (RSUs) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Restricted Stock Units (RSUs) | |||
Total Outstanding | |||
Outstanding, beginning of period (shares) | 313,753 | 291,925 | 319,675 |
Granted (shares) | 213,255 | 216,774 | 142,540 |
Delivered (shares) | (116,598) | (138,682) | (116,663) |
Withheld to cover (shares) | (22,738) | (23,319) | (24,471) |
Forfeited (shares) | (47,648) | (32,945) | (29,156) |
Outstanding, end of period (shares) | 340,024 | 313,753 | 291,925 |
Weighted Average Grant Date Fair Value | |||
Outstanding, beginning of period (dollars per share) | $ 92.85 | $ 88.66 | $ 68.33 |
Granted (dollars per share) | 89.95 | 88.22 | 111.02 |
Delivered (dollars per share) | 93.34 | 78.51 | 66.40 |
Forfeited (dollars per share) | 91.51 | 95.83 | 82.85 |
Outstanding, end of period (dollars per share) | $ 91.02 | $ 92.85 | $ 88.66 |
Performance-based Restricted Stock Units (PRSUs) | |||
Total Outstanding | |||
Outstanding, beginning of period (shares) | 310,678 | 150,181 | 168,382 |
Granted (shares) | 92,743 | 211,251 | 59,728 |
Performance adjustment (shares) | 17,139 | 25,234 | 14,474 |
Delivered (shares) | (63,432) | (52,265) | (60,252) |
Withheld to cover (shares) | (5,224) | (11,809) | (9,518) |
Forfeited (shares) | (32,683) | (11,914) | (22,633) |
Outstanding, end of period (shares) | 319,221 | 310,678 | 150,181 |
Weighted Average Grant Date Fair Value | |||
Outstanding, beginning of period (dollars per share) | $ 90.15 | $ 84.47 | $ 67.80 |
Granted (dollars per share) | 104.36 | 88.37 | 109.25 |
Performance adjustment (dollars per share) | 79.25 | 57.19 | 63.05 |
Delivered (dollars per share) | 79.25 | 57.19 | 63.05 |
Forfeited (dollars per share) | 94.94 | 94.50 | 78.20 |
Outstanding, end of period (dollars per share) | $ 95.55 | $ 90.15 | $ 84.47 |
Restructuring Costs (Narrative)
Restructuring Costs (Narrative) (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Minimum | 2024 Plan | |
Restructuring Cost and Reserve [Line Items] | |
Expected restructuring cost | $ 6 |
Minimum | 2022 Plan | |
Restructuring Cost and Reserve [Line Items] | |
Expected restructuring cost | 3 |
Maximum | 2024 Plan | |
Restructuring Cost and Reserve [Line Items] | |
Expected restructuring cost | 9 |
Maximum | 2022 Plan | |
Restructuring Cost and Reserve [Line Items] | |
Expected restructuring cost | $ 8 |
Restructuring Costs (Restructur
Restructuring Costs (Restructuring Costs by Plan) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring cost, net | $ 10,130 | $ 1,904 | $ 5,567 |
Cumulative amount incurred to date | 32,782 | ||
North American Residential | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring cost, net | 8,481 | 1,736 | (149) |
Cumulative amount incurred to date | 19,419 | ||
Europe | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring cost, net | 158 | 0 | 0 |
Cumulative amount incurred to date | 517 | ||
Architectural | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring cost, net | 864 | 79 | 5,165 |
Cumulative amount incurred to date | 9,512 | ||
Corporate and Other | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring cost, net | 627 | 89 | 551 |
Cumulative amount incurred to date | 3,334 | ||
2024 Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring cost, net | 158 | ||
Cumulative amount incurred to date | 158 | ||
2024 Plan | North American Residential | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring cost, net | 0 | ||
Cumulative amount incurred to date | 0 | ||
2024 Plan | Europe | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring cost, net | 158 | ||
Cumulative amount incurred to date | 158 | ||
2024 Plan | Architectural | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring cost, net | 0 | ||
Cumulative amount incurred to date | 0 | ||
2024 Plan | Corporate and Other | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring cost, net | 0 | ||
Cumulative amount incurred to date | 0 | ||
2022 Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring cost, net | 9,972 | 2,131 | |
Cumulative amount incurred to date | 12,103 | ||
2022 Plan | North American Residential | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring cost, net | 8,481 | 2,131 | |
Cumulative amount incurred to date | 10,612 | ||
2022 Plan | Europe | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring cost, net | 0 | 0 | |
Cumulative amount incurred to date | 0 | ||
2022 Plan | Architectural | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring cost, net | 864 | 0 | |
Cumulative amount incurred to date | 864 | ||
2022 Plan | Corporate and Other | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring cost, net | 627 | 0 | |
Cumulative amount incurred to date | 627 | ||
Other | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring cost, net | (227) | 5,567 | |
Cumulative amount incurred to date | 20,521 | ||
Other | North American Residential | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring cost, net | (395) | (149) | |
Cumulative amount incurred to date | 8,807 | ||
Other | Europe | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring cost, net | 0 | 0 | |
Cumulative amount incurred to date | 359 | ||
Other | Architectural | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring cost, net | 79 | 5,165 | |
Cumulative amount incurred to date | 8,648 | ||
Other | Corporate and Other | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring cost, net | $ 89 | $ 551 | |
Cumulative amount incurred to date | $ 2,707 |
Restructuring Costs (Schedule o
Restructuring Costs (Schedule of Restructuring Reserve by Type of Cost) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Restructuring Reserve [Roll Forward] | |||
Restructuring reserve, beginning balance | $ 0 | $ 49 | $ 1,783 |
Restructuring costs | 10,130 | 1,904 | 5,567 |
Payments for restructuring | 9,880 | 1,953 | 7,301 |
Restructuring reserve, ending balance | 250 | 0 | 49 |
Severance | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring costs | 5,815 | 113 | 952 |
Closure Costs | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring costs | 4,315 | 1,791 | 4,615 |
2024 Plan | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring reserve, beginning balance | 0 | ||
Restructuring costs | 158 | ||
Payments for restructuring | 158 | ||
Restructuring reserve, ending balance | 0 | 0 | |
2024 Plan | Severance | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring costs | 158 | ||
2024 Plan | Closure Costs | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring costs | 0 | ||
2022 Plan | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring reserve, beginning balance | 0 | 0 | |
Restructuring costs | 9,972 | 2,131 | |
Payments for restructuring | 9,722 | 2,131 | |
Restructuring reserve, ending balance | 250 | 0 | 0 |
2022 Plan | Severance | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring costs | 5,657 | 143 | |
2022 Plan | Closure Costs | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring costs | 4,315 | 1,988 | |
Other | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring reserve, beginning balance | $ 0 | 49 | 1,783 |
Restructuring costs | (227) | 5,567 | |
Payments for restructuring | 178 | 7,301 | |
Restructuring reserve, ending balance | 0 | 49 | |
Other | Severance | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring costs | (30) | 952 | |
Other | Closure Costs | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring costs | $ (197) | $ 4,615 |
Asset Impairment (Details)
Asset Impairment (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Asset impairment | $ 33,063,000 | $ 0 | $ 69,900,000 |
Goodwill | 294,710,000 | 69,868,000 | |
Architectural | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Asset impairment | 10,400,000 | 59,500,000 | |
Goodwill | 0 | ||
Goodwill impairment | 59,500,000 | ||
Architectural and Corporate & Other | Reported Value Measurement | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Book value of asset group | 16,700,000 | ||
Architectural and Corporate & Other | Fair Value, Inputs, Level 3 | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Fair value of asset group based on estimated discounted future cash flows, including salvage values or market values | 6,300,000 | ||
Operating Segments | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Goodwill | 294,710,000 | 69,868,000 | 77,102,000 |
Goodwill impairment | 33,212,000 | ||
Operating Segments | Europe | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Goodwill | 30,206,000 | 59,994,000 | 67,209,000 |
Goodwill, excluding foreign exchange fluctuations | 26,800,000 | ||
Goodwill impairment | $ 33,212,000 | ||
Operating Segments | Architectural | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Goodwill | $ 0 | 59,500,000 | |
Goodwill impairment | $ 59,500,000 |
Income Taxes (Income From Conti
Income Taxes (Income From Continuing Operations Before Tax) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Income Tax Disclosure [Abstract] | |||
Canada | $ 38,602 | $ 78,768 | $ 44,935 |
Foreign | 123,608 | 211,429 | 99,031 |
Total income before income tax expense (benefit) | $ (162,210) | $ (290,197) | $ (143,966) |
Income Taxes (Income Tax Expens
Income Taxes (Income Tax Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Current income tax expense (benefit): | |||
Canada | $ 10,870 | $ 15,266 | $ 9,392 |
Foreign | 42,049 | 50,463 | 30,499 |
Total current income tax expense | 52,919 | 65,729 | 39,891 |
Deferred income tax expense (benefit): | |||
Canada | (7,793) | 7,931 | 3,626 |
Foreign | (4,185) | (1,907) | 1,255 |
Total deferred income tax expense (benefit) | (11,978) | 6,024 | 4,881 |
Income tax expense | $ 40,941 | $ 71,753 | $ 44,772 |
Income Taxes (Income Tax Rate R
Income Taxes (Income Tax Rate Reconciliation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Canadian federal statutory rate, (percent) | 26.10% | 26.10% | 26.50% |
Income tax expense computed at statutory income tax rate | $ 42,386 | $ 75,829 | $ 38,137 |
Foreign rate differential | (12,456) | (10,045) | (12,370) |
Permanent differences | (286) | (2,012) | 3,843 |
Disposal of subsidiaries | 0 | 287 | 1,651 |
Income attributable to a permanent establishment | 206 | (6,517) | 2,608 |
Change in valuation allowance | (2,142) | 5,202 | 1,569 |
Income tax credits | 4,606 | 2,673 | 5,591 |
Foreign exchange gains (losses) | 2,361 | (2,271) | 677 |
Change in tax rate | (681) | 1,120 | 2,706 |
Goodwill impairment | 7,632 | 0 | 11,296 |
Limitation on executive compensation | 2,275 | 2,273 | 1,904 |
Withholding and other taxes | 2,286 | 2,100 | 1,761 |
Nondeductible interest | 4,486 | 1,970 | 0 |
Other | (520) | 1,144 | (3,419) |
Income tax expense (benefit) | $ 40,941 | $ 71,753 | $ 44,772 |
Income Taxes (Deferred Income T
Income Taxes (Deferred Income Taxes) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | Jan. 03, 2021 |
Deferred tax assets: | ||||
Non-capital loss carryforwards | $ 27,587 | $ 12,525 | ||
Capital loss carryforwards | 7,697 | 7,753 | ||
Deferred interest expense | 8,742 | 9,052 | ||
Accruals and reserves currently not deductible for tax purposes | 21,727 | 20,268 | ||
Share based compensation | 6,011 | 4,887 | ||
Income tax credits | 1,149 | 872 | ||
Lease right-of-use assets | 54,659 | 53,985 | ||
Capitalized research and development | 6,816 | 5,732 | ||
Other | 1,511 | 2,031 | ||
Total deferred tax assets | 135,899 | 117,105 | ||
Valuation allowance | (12,113) | (14,102) | $ (10,286) | $ (5,970) |
Total deferred tax assets, net of valuation allowance | 123,786 | 103,003 | ||
Deferred tax liabilities: | ||||
Plant and equipment | (105,668) | (86,337) | ||
Intangibles | (49,615) | (21,043) | ||
Basis difference in subsidiaries | (7,682) | (7,469) | ||
Unrealized foreign exchange loss | 332 | 1,850 | ||
Lease liabilities | (50,299) | (48,889) | ||
Other | (4,474) | (4,572) | ||
Total deferred tax liabilities | (217,406) | (166,460) | ||
Net deferred tax liability | $ 93,620 | $ 63,457 |
Income Taxes (Valuation Allowan
Income Taxes (Valuation Allowance Rollforward) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | $ 14,102 | $ 10,286 | $ 5,970 |
Additions charged to expense and other | 590 | 10,252 | 4,473 |
Deductions | (2,579) | (6,436) | (157) |
Balance at end of period | $ 12,113 | $ 14,102 | $ 10,286 |
Income Taxes (Loss Carryforward
Income Taxes (Loss Carryforwards) (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | $ 108,160 |
Canada | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 74,186 |
Other Foreign | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 33,974 |
2024-2029 | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 3,376 |
2024-2029 | Canada | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 0 |
2024-2029 | Other Foreign | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 3,376 |
2030-2044 | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 74,186 |
2030-2044 | Canada | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 74,186 |
2030-2044 | Other Foreign | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 0 |
Indefinitely | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 30,598 |
Indefinitely | Canada | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 0 |
Indefinitely | Other Foreign | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | $ 30,598 |
Income Taxes (Unrecognized Tax
Income Taxes (Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized tax benefits | $ 6,831 | $ 7,680 | $ 7,592 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefit at beginning of period | 7,680 | 7,592 | 8,108 |
Gross increases in tax positions in current period | 106 | 151 | 103 |
Gross decreases in tax positions in prior period | (488) | (173) | (108) |
Gross increases in tax positions in prior period | 56 | 110 | 0 |
Lapse of statute of limitations | (523) | 0 | (511) |
Unrecognized tax benefit at end of period | 6,831 | 7,680 | 7,592 |
Unrecognized tax benefits, interest expense | 700 | 600 | 400 |
Unrecognized tax benefits, penalties accrued | 200 | 300 | 300 |
Unrecognized tax benefits, interest accrued | 3,200 | $ 3,100 | $ 2,800 |
Decrease in unrecognized tax benefits is reasonably possible | $ 4,500 |
Earnings Per Share (Schedule of
Earnings Per Share (Schedule of Earnings Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Net income attributable to Masonite | $ 118,227 | $ 214,233 | $ 94,501 |
Shares used in computing basic earnings per share (in shares) | 22,031,168 | 22,532,722 | 24,176,846 |
Effect of dilutive securities: | |||
Incremental shares issuable under share compensation plans (in shares) | 314,312 | 239,743 | 385,687 |
Shares used in computing diluted earnings per share) | 22,345,480 | 22,772,465 | 24,562,533 |
Basic earnings per common share attributable to Masonite (in dollars per share) | $ 5.37 | $ 9.51 | $ 3.91 |
Diluted earnings per common share attributable to Masonite (in dollars per share) | $ 5.29 | $ 9.41 | $ 3.85 |
Anti-dilutive instruments excluded from diluted earnings per common share | |||
Effect of dilutive securities: | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 97,805 | 223,968 | 28,707 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) | 3 Months Ended | 12 Months Ended | ||
Jul. 03, 2022 USD ($) shares | Apr. 03, 2022 USD ($) shares | Jan. 01, 2023 authorization $ / shares shares | Feb. 21, 2022 USD ($) | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Number of share repurchase authorizations | authorization | 5 | |||
Stock repurchase program, authorized amount | $ 200,000,000 | |||
Accelerated Share Repurchase | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Stock repurchase program, authorized amount | $ 100,000,000 | $ 100,000,000 | ||
Share repurchases, settlement (payment) | $ 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 (Schedule o
Segment Information (Schedule of Segment Reporting Information, by Segment) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | $ 2,830,695 | $ 2,891,687 | $ 2,596,920 |
Adjusted EBITDA | 418,642 | 445,798 | 412,606 |
Depreciation and Amortization | 124,121 | 88,295 | 91,982 |
Interest expense, net | 50,822 | 41,331 | 46,123 |
Income tax expense | 40,941 | 71,753 | 44,772 |
Operating Segments | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | 2,846,841 | 2,912,555 | 2,620,688 |
Intersegment Eliminations | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | (16,146) | (20,868) | (23,768) |
North American Residential | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | 2,244,882 | 2,283,642 | 1,952,898 |
Adjusted EBITDA | 440,887 | 461,750 | 374,452 |
Depreciation and Amortization | 73,773 | 42,958 | 39,504 |
Interest expense, net | 0 | 0 | 0 |
Income tax expense | 0 | 0 | 0 |
North American Residential | Operating Segments | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | 2,246,492 | 2,286,098 | 1,955,424 |
North American Residential | Intersegment Eliminations | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | (1,610) | (2,456) | (2,526) |
Europe | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | 246,968 | 280,769 | 334,532 |
Adjusted EBITDA | 10,709 | 28,774 | 60,624 |
Depreciation and Amortization | 21,279 | 21,061 | 23,825 |
Interest expense, net | 0 | 0 | 0 |
Income tax expense | 0 | 0 | 0 |
Europe | Operating Segments | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | 247,539 | 282,989 | 342,172 |
Europe | Intersegment Eliminations | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | (571) | (2,220) | (7,640) |
Architectural | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | 323,449 | 306,983 | 289,476 |
Adjusted EBITDA | 15,462 | (3,748) | (2,704) |
Depreciation and Amortization | 12,924 | 12,374 | 14,620 |
Interest expense, net | 0 | 0 | 0 |
Income tax expense | 0 | 0 | 0 |
Architectural | Operating Segments | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | 337,400 | 323,175 | 303,078 |
Architectural | Intersegment Eliminations | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | (13,951) | (16,192) | (13,602) |
Corporate and Other | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | 15,396 | 20,293 | 20,014 |
Adjusted EBITDA | (48,416) | (40,978) | (19,766) |
Depreciation and Amortization | 16,145 | 11,902 | 14,033 |
Interest expense, net | 50,822 | 41,331 | 46,123 |
Income tax expense | 40,941 | 71,753 | 44,772 |
Corporate and Other | Operating Segments | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | 15,410 | 20,293 | 20,014 |
Corporate and Other | Intersegment Eliminations | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | $ (14) | $ 0 | $ 0 |
Segment Information (Reconcilia
Segment Information (Reconciliation of Consolidated Adjusted EBITDA to Net Income (Loss)) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Jan. 01, 2023 | Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Segment Reporting [Abstract] | ||||
Net income attributable to Masonite | $ 118,227,000 | $ 214,233,000 | $ 94,501,000 | |
Depreciation | 91,145,000 | 71,168,000 | 70,641,000 | |
Amortization | 32,976,000 | 17,127,000 | 21,341,000 | |
Share based compensation expense | 23,638,000 | 21,771,000 | 15,959,000 | |
Loss on disposal of property, plant and equipment | 4,434,000 | (378,000) | 1,316,000 | |
Restructuring costs | 10,130,000 | 1,904,000 | 5,567,000 | |
Asset impairment | 33,063,000 | 0 | 69,900,000 | |
Loss on disposal of subsidiaries | $ 900,000 | 0 | 850,000 | 8,590,000 |
Interest expense, net | 50,822,000 | 41,331,000 | 46,123,000 | |
Loss on extinguishment of debt | 0 | 0 | 13,583,000 | |
Other (income) expense, net | 2,087,000 | 5,001,000 | (15,620,000) | |
Income tax expense (benefit) | 40,941,000 | 71,753,000 | 44,772,000 | |
Net income attributable to non-controlling interest | 3,042,000 | 4,211,000 | 4,693,000 | |
Adjusted EBITDA | 418,642,000 | 445,798,000 | 412,606,000 | |
Acquisition related costs | $ 12,311,000 | $ 6,829,000 | $ 0 |
Segment Information (Net Sales)
Segment Information (Net Sales) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Segment Reporting Information [Line Items] | |||
Net sales | $ 2,830,695 | $ 2,891,687 | $ 2,596,920 |
The Home Depot, Inc. | |||
Segment Reporting Information [Line Items] | |||
Net sales | 566,100 | 630,700 | 491,500 |
United States | |||
Segment Reporting Information [Line Items] | |||
Net sales | 2,247,062 | 2,153,689 | 1,776,180 |
Canada | |||
Segment Reporting Information [Line Items] | |||
Net sales | 289,877 | 395,938 | 364,179 |
United Kingdom | |||
Segment Reporting Information [Line Items] | |||
Net sales | 229,336 | 259,944 | 300,008 |
Other | |||
Segment Reporting Information [Line Items] | |||
Net sales | 64,420 | 82,116 | 156,553 |
Interior products | |||
Segment Reporting Information [Line Items] | |||
Net sales | 1,647,452 | 1,871,103 | 1,654,379 |
Exterior products | |||
Segment Reporting Information [Line Items] | |||
Net sales | 839,716 | 892,945 | 813,605 |
Components | |||
Segment Reporting Information [Line Items] | |||
Net sales | $ 343,527 | $ 127,639 | $ 128,936 |
Segment Information (Property,
Segment Information (Property, Plant and Equipment) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Jan. 01, 2023 |
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | $ 747,970 | $ 652,329 |
United States | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | 526,691 | 443,105 |
United Kingdom | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | 77,490 | 58,246 |
Other | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | $ 143,789 | $ 150,978 |
Employee Future Benefits (Infor
Employee Future Benefits (Information about the Plans) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jan. 02, 2022 | Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Components of net periodic benefit cost: | ||||
Defined contribution plan, contributions | $ 16,500 | $ 16,100 | $ 15,600 | |
United States | Pension Plan | ||||
Components of net periodic benefit cost: | ||||
Service cost | 0 | 0 | 331 | |
Interest cost | 0 | 0 | 1,516 | |
Expected return on assets | 0 | 0 | (2,953) | |
Amortization of actuarial net losses | 0 | 0 | 1,047 | |
Settlement loss | $ 23,300 | 0 | 23,343 | |
Net pension expense | 0 | 0 | 23,284 | |
United Kingdom | Pension Plan | ||||
Components of net periodic benefit cost: | ||||
Interest cost | 981 | 504 | 366 | |
Expected return on assets | (827) | (934) | (1,292) | |
Amortization of actuarial net losses | 791 | 22 | 289 | |
Net pension expense | $ 945 | $ (408) | $ (637) |
Employee Future Benefits (Plan
Employee Future Benefits (Plan Activity) (Details) - Pension Plan - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
United Kingdom | |||
Pension assets: | |||
Fair value of plan assets, beginning of year | $ 18,082 | $ 33,389 | |
Company contributions | 2,087 | 2,021 | |
Actual return on plan assets | 909 | (13,071) | |
Benefits paid | (958) | (1,006) | |
Translation adjustment | (1,079) | 3,251 | |
Fair value of plan assets, end of year | 21,199 | 18,082 | $ 33,389 |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Accrued benefit obligation, beginning of year | 20,071 | 33,002 | |
Interest cost | 981 | 504 | 366 |
Actuarial loss (gain) | 357 | 9,153 | |
Benefits paid | (958) | (1,006) | |
Accrued benefit obligation, end of year | 20,876 | 20,071 | $ 33,002 |
Translation adjustment | 1,139 | (3,276) | |
Net accrued benefit obligation, end of year | $ 323 | $ (1,989) | |
Accrued benefit obligation, discount rate (percent) | 4.48% | 4.81% | 1.83% |
United States | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Interest cost | $ 0 | $ 0 | $ 1,516 |
Accrued benefit obligation, discount rate (percent) | 0% | 0% | 2.40% |
Employee Future Benefits - AOCL
Employee Future Benefits - AOCL (Details) - United Kingdom - Pension Plan - USD ($) $ in Thousands | Dec. 31, 2023 | Jan. 01, 2023 |
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial loss | $ 6,389 | $ 7,212 |
Prior service cost | 443 | 440 |
Total amount recognized in AOCL, pre-tax | $ 6,832 | $ 7,652 |
Employee Future Benefits - Chan
Employee Future Benefits - Change in AOCL (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Net actuarial loss from prior years | $ (805) | $ (22) | $ (1,336) |
United Kingdom | Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net actuarial (gain) loss | (439) | 4,852 | |
Prior service cost | 22 | 22 | |
Net actuarial loss from prior years | (769) | 0 | |
Translation adjustment | 410 | (490) | |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, before Tax, Total | $ (820) | $ 4,340 |
Employee Future Benefits (Alloc
Employee Future Benefits (Allocation of Plan Assets) (Details) - United Kingdom - Pension Plan - USD ($) $ in Thousands | Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 |
Defined Benefit Plan Disclosure [Line Items] | |||
Allocation of plan assets | $ 21,199 | $ 18,082 | $ 33,389 |
Allocation of plan assets, percent | 100% | 100% | |
Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Allocation of plan assets | $ 4,511 | $ 3,740 | |
Allocation of plan assets, percent | 21.30% | 20.70% | |
Target plan asset allocations, percent | 20% | ||
Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Allocation of plan assets | $ 16,688 | $ 14,342 | |
Allocation of plan assets, percent | 78.70% | 79.30% | |
Target plan asset allocations, percent | 80% |
Employee Future Benefits (Actua
Employee Future Benefits (Actuarial Assumptions) (Details) - Pension Plan | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
United States | |||
Discount rate applied for: | |||
Accrued benefit obligation | 0% | 0% | 2.40% |
Net periodic pension cost | 0% | 0% | 2.40% |
Expected long-term rate of return on plan assets | 0% | 0% | 3.50% |
United Kingdom | |||
Discount rate applied for: | |||
Accrued benefit obligation | 4.48% | 4.81% | 1.83% |
Net periodic pension cost | 4.80% | 1.70% | 1% |
Expected long-term rate of return on plan assets | 4.30% | 3% | 4.10% |
Expected long-term return on assets, (in Years) | 10 years |
Employee Future Benefits (Overa
Employee Future Benefits (Overall Pension Obligation) (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | |
2024 | $ 1,054 |
2025 | 1,198 |
2026 | 1,174 |
2027 | 1,226 |
2028 | 1,301 |
Thereafter | 7,152 |
Expected future benefit payments | 13,105 |
Expected contributions to the plans in the next fiscal year | $ 2,200 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income and Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Accumulated Foreign Exchange Gains (Losses) [Roll Forward] | |||
Accumulated foreign exchange losses, beginning of period | $ (132,001) | $ (96,919) | $ (93,684) |
Foreign currency translation gain (loss) | 19,148 | (36,369) | (6,719) |
Income tax benefit on foreign currency translation gain | 9 | 18 | 6 |
Cumulative translation adjustment recognized upon deconsolidation of subsidiaries | 0 | 732 | 3,544 |
Less: foreign exchange gain (loss) attributable to non-controlling interest | 179 | (537) | 66 |
Accumulated foreign exchange losses, end of period | (113,023) | (132,001) | (96,919) |
Accumulated Amortization of Actuarial Net Losses [Roll Forward] | |||
Accumulated pension and other post-retirement adjustments, beginning of period | (10,223) | (4,663) | (18,379) |
Pension and other post-retirement adjustment | 447 | (4,718) | 2,250 |
Income tax benefit (expense) on pension and other post-retirement adjustments | 2,003 | (858) | (437) |
Amortization of actuarial net losses | 805 | 22 | 1,336 |
Income tax expense on amortization of actuarial net losses | (201) | (6) | (258) |
Pension settlement charges | 0 | 0 | 15,654 |
Income tax expense on pension settlement charges | 0 | 0 | (4,829) |
Accumulated pension and other post-retirement adjustments, end of period | (7,169) | (10,223) | (4,663) |
Accumulated other comprehensive loss | (120,192) | (142,224) | (101,582) |
Other comprehensive income (loss), net of tax: | 22,211 | (41,179) | 10,547 |
Less: other comprehensive income (loss) attributable to non-controlling interest | 179 | (537) | 66 |
Other comprehensive income (loss) attributable to Masonite | $ 22,032 | $ (40,642) | $ 10,481 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Transactions involving cash: | |||
Interest paid | $ 57,719 | $ 41,846 | $ 42,703 |
Interest received | 12,595 | 2,783 | 250 |
Income taxes paid | 77,135 | 77,500 | 40,506 |
Income tax refunds | 4,560 | 1,596 | 875 |
Cash paid for operating lease liabilities | 37,643 | 33,451 | 29,886 |
Cash paid for finance lease liabilities | 1,414 | 1,359 | 1,470 |
Right-of-use assets acquired under operating leases | $ 68,902 | 9,307 | 49,703 |
Obligation for holdback from purchase payable | $ 0 | $ 0 |
Supplemental Cash Flow Inform_4
Supplemental Cash Flow Information Cash, cash equivalents and restricted cash (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | Jan. 03, 2021 |
Supplemental Cash Flow Elements [Abstract] | ||||
Cash and cash equivalents | $ 137,414 | $ 296,922 | ||
Restricted cash | 11,926 | 11,999 | ||
Total cash, cash equivalents and restricted cash | $ 149,340 | $ 308,921 | $ 391,505 | $ 375,234 |
Supplemental Cash Flow Inform_5
Supplemental Cash Flow Information - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Jan. 01, 2023 | |
Supplemental Cash Flow Elements [Abstract] | ||
Property, plant and equipment additions in accounts payable | $ 9 | $ 10.4 |
Notes receivable, current | $ 12.6 |
Variable Interest Entity (Detai
Variable Interest Entity (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Jan. 01, 2023 |
Variable Interest Entity [Line Items] | ||
Current assets | $ 953,399 | $ 1,163,640 |
Property, plant and equipment, net | 747,970 | 652,329 |
Long-term deferred income taxes | 26,658 | 16,133 |
Other assets | 36,517 | 33,346 |
Current liabilities | (394,584) | (348,933) |
Other long-term liabilities | (75,158) | (59,515) |
Net assets of the VIE consolidated by Masonite | 848,253 | 732,119 |
Variable Interest Entity, Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Current assets | 7,837 | 5,699 |
Property, plant and equipment, net | 7,652 | 8,056 |
Long-term deferred income taxes | 544 | 1,170 |
Other assets | 4,523 | 4,067 |
Current liabilities | (1,807) | (1,396) |
Other long-term liabilities | (431) | (4) |
Non-controlling interest | (4,028) | (3,229) |
Net assets of the VIE consolidated by Masonite | $ 14,290 | $ 14,363 |
Variable Interest Entity (Narra
Variable Interest Entity (Narrative) (Details) $ in Thousands | Dec. 31, 2023 USD ($) | Jan. 01, 2023 USD ($) |
Variable Interest Entity [Line Items] | ||
Cash and cash equivalents | $ 137,414 | $ 296,922 |
Variable Interest Entity, Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Number of variable interest entities | 1 | 1 |
Cash and cash equivalents | $ 3,000 | $ 1,000 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details) - Senior Notes - USD ($) $ in Thousands | Dec. 31, 2023 | Jan. 01, 2023 | Jul. 26, 2021 | Jul. 25, 2019 |
Senior Notes Due 2030 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Interest rate stated percentage | 3.50% | |||
Senior Notes Due 2030 | Estimate of Fair Value Measurement | Fair Value, Inputs, Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Estimated fair value of senior notes | $ 324,956 | $ 303,870 | ||
Senior Notes Due 2030 | Reported Value Measurement | Fair Value, Inputs, Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Estimated fair value of senior notes | $ 371,679 | 371,136 | ||
Senior Notes Due 2028 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Interest rate stated percentage | 5.375% | 5.375% | ||
Senior Notes Due 2028 | Estimate of Fair Value Measurement | Fair Value, Inputs, Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Estimated fair value of senior notes | $ 482,285 | 462,495 | ||
Senior Notes Due 2028 | Reported Value Measurement | Fair Value, Inputs, Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Estimated fair value of senior notes | $ 496,609 | $ 495,868 | ||
Senior Notes Due 2026 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Interest rate stated percentage | 5.75% |
Subsequent Events (Details)
Subsequent Events (Details) $ / shares in Units, $ in Millions | Feb. 08, 2024 USD ($) $ / shares | Jan. 16, 2024 USD ($) d | Dec. 17, 2023 USD ($) |
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Contract termination fee | $ 75 | ||
Subsequent Event | PGT Innovations, Inc. | |||
Subsequent Event [Line Items] | |||
Gain (loss) on contract termination | $ 84 | ||
Masonite International Corporation | Subsequent Event | Owens Corning | |||
Subsequent Event [Line Items] | |||
Business acquisition, share price (in dollars per share) | $ / shares | $ 133 | ||
Termination fee | $ 150 | ||
PGT Innovations, Inc. | |||
Subsequent Event [Line Items] | |||
Contract termination | $ 3,000 | ||
PGT Innovations, Inc. | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Contract termination, match period | d | 4 |