Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2024 | Nov. 01, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 1-13429 | |
Entity Registrant Name | Simpson Manufacturing Co., Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 94-3196943 | |
Entity Address, Address | 5956 W. Las Positas Blvd., | |
Entity Address, City or Town | Pleasanton | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94588 | |
City Area Code | 925 | |
Local Phone Number | 560-9000 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | SSD | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 42,164,088 | |
Entity Central Index Key | 0000920371 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q3 | |
Document Period End Date | Sep. 30, 2024 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2024 | Dec. 31, 2023 | Sep. 30, 2023 |
Current assets | |||
Cash and cash equivalents | $ 339,427 | $ 429,822 | $ 571,006 |
Trade accounts receivable, net | 360,350 | 283,975 | 351,164 |
Inventories | 583,380 | 551,575 | 504,446 |
Other current assets | 51,609 | 47,069 | 51,583 |
Total current assets | 1,334,766 | 1,312,441 | 1,478,199 |
Noncurrent assets | |||
Property, plant and equipment, net | 495,822 | 418,612 | 382,508 |
Operating lease right-of-use assets | 87,097 | 68,792 | 66,144 |
Goodwill | 550,946 | 502,550 | 483,413 |
Intangible assets, net | 395,517 | 365,339 | 356,450 |
Other noncurrent assets | 33,311 | 36,990 | 48,773 |
Total assets | 2,897,459 | 2,704,724 | 2,815,487 |
Current liabilities | |||
Trade accounts payable | 110,321 | 107,524 | 95,267 |
Income tax payable | 4,126 | 3,491 | 87,569 |
Accrued liabilities and other current liabilities | 241,004 | 227,742 | 222,233 |
Long-term debt, current portion | 22,500 | 22,500 | 22,500 |
Total current liabilities | 377,951 | 361,257 | 427,569 |
Liabilities, Noncurrent | |||
Operating lease liabilities | 70,496 | 55,324 | 53,808 |
Long-term debt, net of issuance costs | 442,885 | 458,791 | 539,073 |
Deferred income tax | 89,226 | 98,170 | 97,298 |
Other long-term liabilities | 53,457 | 51,436 | 28,248 |
Total liabilities | 1,034,015 | 1,024,978 | 1,145,996 |
Non-qualified deferred compensation plan share awards | 6,473 | 0 | 0 |
Commitments and contingencies (see Note 13) | |||
Stockholders’ equity | |||
Common stock, at par value | 424 | 426 | 426 |
Additional paid-in capital | 311,885 | 313,119 | 307,149 |
Retained earnings | 1,606,371 | 1,426,554 | 1,383,184 |
Common stock held in non-qualified deferred compensation plan ("DCP") | (1,074) | 0 | 0 |
Treasury stock | (50,280) | (50,363) | 0 |
Accumulated other comprehensive loss | (10,355) | (9,990) | (21,268) |
Total stockholders’ equity | 1,856,971 | 1,679,746 | 1,669,491 |
Total liabilities and stockholders’ equity | $ 2,897,459 | $ 2,704,724 | $ 2,815,487 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Earnings and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2024 | Sep. 30, 2023 | Sep. 30, 2024 | Sep. 30, 2023 | |
Income Statement [Abstract] | ||||
Net sales | $ 587,153 | $ 580,084 | $ 1,714,710 | $ 1,712,093 |
Cost of sales | 312,096 | 297,167 | 916,551 | 888,835 |
Gross profit | 275,057 | 282,917 | 798,159 | 823,258 |
Operating expenses: | ||||
Research and development and other engineering | 23,678 | 24,751 | 68,303 | 67,035 |
Selling | 54,590 | 52,391 | 165,007 | 151,497 |
General and administrative | 70,604 | 64,793 | 207,181 | 197,267 |
Total operating expenses | 148,872 | 141,935 | 440,491 | 415,799 |
Acquisition and integration related costs | 1,356 | 785 | 4,992 | 4,086 |
Net gain on disposal of assets | (25) | (16) | (460) | (223) |
Income from operations | 124,854 | 140,213 | 353,136 | 403,596 |
Interest income and other finance costs, net | 1,668 | 1,292 | 4,111 | 18 |
Other & foreign exchange gain (loss), net | (29) | (1,429) | 352 | (1,471) |
Income before taxes | 126,493 | 140,076 | 357,599 | 402,143 |
Provision for income taxes | 32,974 | 36,055 | 90,821 | 102,958 |
Net income | 93,519 | 104,021 | 266,778 | 299,185 |
Other comprehensive income | ||||
Translation adjustments | 26,320 | (13,238) | 4,409 | (8,729) |
Unamortized pension adjustments | (367) | (4) | (653) | 396 |
Cash flow hedge adjustment, net of tax | (11,427) | 1,087 | (4,121) | (8,876) |
Comprehensive net income | $ 108,045 | $ 91,866 | $ 266,413 | $ 281,976 |
Net income per common share: | ||||
Basic | $ 2.22 | $ 2.44 | $ 6.31 | $ 7.01 |
Diluted | $ 2.21 | $ 2.43 | $ 6.28 | $ 6.98 |
Weighted-average number of shares outstanding | ||||
Basic | 42,151 | 42,673 | 42,254 | 42,651 |
Diluted | 42,335 | 42,882 | 42,464 | 42,893 |
Cash dividends declared per common share | $ 0.28 | $ 0.27 | $ 0.83 | $ 0.80 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | AOCI Including Portion Attributable to Noncontrolling Interest | DCP Vested Stock | Treasury Stock, Common |
Beginning Balance (in shares) at Dec. 31, 2022 | 42,560,000 | |||||||
Beginning Balance at Dec. 31, 2022 | $ 1,413,379 | $ 425 | $ 298,983 | $ 1,118,030 | $ (4,059) | $ 0 | $ 0 | |
Increase (Decrease) in Stockholders' Equity | ||||||||
Net income | 299,185 | 299,185 | ||||||
Translation adjustment and other, net of tax | (8,729) | (8,729) | ||||||
Pension adjustment, net of tax | 396 | 396 | ||||||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax | (8,876) | (8,876) | ||||||
Stock-based compensation and deferred compensation plan ("DCP") expense | 15,564 | 15,564 | ||||||
Shares issued from release of Restricted Stock Units (in shares) | 113,000 | |||||||
Shares issued from release of Restricted Stock Units | (7,397) | $ 1 | (7,398) | |||||
Cash dividends declared on common stock | (34,031) | (34,031) | ||||||
Ending Balance (in shares) at Sep. 30, 2023 | 42,673,000 | |||||||
Ending Balance at Sep. 30, 2023 | 1,669,491 | $ 426 | 307,149 | 1,383,184 | (21,268) | 0 | 0 | |
Beginning Balance (in shares) at Jun. 30, 2023 | 42,673,000 | |||||||
Beginning Balance at Jun. 30, 2023 | 1,583,611 | $ 426 | 301,612 | 1,290,686 | (9,113) | 0 | 0 | |
Increase (Decrease) in Stockholders' Equity | ||||||||
Net income | 104,021 | 104,021 | ||||||
Translation adjustment and other, net of tax | (13,238) | (13,238) | ||||||
Pension adjustment, net of tax | (4) | (4) | ||||||
Cash flow hedges, net of tax | 1,087 | $ 1,087 | ||||||
Stock-based compensation and deferred compensation plan ("DCP") expense | 5,537 | 5,537 | ||||||
Cash dividends declared on common stock | (11,523) | (11,523) | ||||||
Ending Balance (in shares) at Sep. 30, 2023 | 42,673,000 | |||||||
Ending Balance at Sep. 30, 2023 | 1,669,491 | $ 426 | 307,149 | 1,383,184 | (21,268) | 0 | 0 | |
Beginning Balance (in shares) at Dec. 31, 2023 | 42,323,000 | |||||||
Beginning Balance at Dec. 31, 2023 | 1,679,746 | $ 426 | 313,119 | 1,426,554 | (9,990) | 0 | (50,363) | |
Increase (Decrease) in Stockholders' Equity | ||||||||
Net income | 266,778 | 266,778 | ||||||
Translation adjustment and other, net of tax | 4,409 | 4,409 | ||||||
Pension adjustment, net of tax | (653) | (653) | ||||||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax | (4,121) | (4,121) | ||||||
Stock-based compensation and deferred compensation plan ("DCP") expense | 5,246 | 5,246 | ||||||
Common stock held in DCP | 0 | (1,074) | 1,074 | |||||
Change in redemption value of share awards in DCP | (1,533) | (1,533) | ||||||
Shares issued from release of Restricted Stock Units (in shares) | 124,000 | |||||||
Shares issued from release of Restricted Stock Units | (7,553) | $ 1 | (7,554) | |||||
Repurchase of common stock (in shares) | (283,000) | |||||||
Repurchase of common stock | (50,280) | (50,280) | ||||||
Treasury Stock, Retired, Par Value Method, Amount | 0 | (50,360) | 50,363 | |||||
Treasury Stock, Shares, Retired | (3,000) | |||||||
Cash dividends declared on common stock | (35,068) | (35,068) | ||||||
Ending Balance (in shares) at Sep. 30, 2024 | 42,164,000 | |||||||
Ending Balance at Sep. 30, 2024 | 1,856,971 | $ 424 | 311,885 | 1,606,371 | (10,355) | (1,074) | (50,280) | |
Beginning Balance (in shares) at Jun. 30, 2024 | 42,163,000 | |||||||
Beginning Balance at Jun. 30, 2024 | 1,764,801 | $ 424 | 313,323 | 1,526,192 | (24,881) | 0 | (50,257) | |
Increase (Decrease) in Stockholders' Equity | ||||||||
Net income | 93,519 | 93,519 | ||||||
Translation adjustment and other, net of tax | 26,320 | 26,320 | ||||||
Pension adjustment, net of tax | (367) | (367) | ||||||
Cash flow hedges, net of tax | (11,427) | (11,427) | ||||||
Stock-based compensation and deferred compensation plan ("DCP") expense | (2,506) | (2,506) | ||||||
Common stock held in DCP | 0 | 1,074 | (1,074) | |||||
Change in redemption value of share awards in DCP | (1,533) | (1,533) | ||||||
Shares issued from release of Restricted Stock Units (in shares) | 1,000 | |||||||
Shares issued from release of Restricted Stock Units | (6) | (6) | ||||||
Repurchase of common stock (in shares) | 0 | |||||||
Repurchase of common stock | (23) | (23) | ||||||
Cash dividends declared on common stock | (11,807) | (11,807) | ||||||
Ending Balance (in shares) at Sep. 30, 2024 | 42,164,000 | |||||||
Ending Balance at Sep. 30, 2024 | $ 1,856,971 | $ 424 | $ 311,885 | $ 1,606,371 | $ (10,355) | $ (1,074) | $ (50,280) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2024 | Sep. 30, 2023 | Sep. 30, 2024 | Sep. 30, 2023 | |
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends declared per common share | $ 0.28 | $ 0.27 | $ 0.83 | $ 0.80 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2024 | Sep. 30, 2023 | |
Cash flows from operating activities | ||
Net income | $ 266,778 | $ 299,185 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Gain on sale of assets and other | (460) | (505) |
Depreciation and amortization | 60,979 | 54,224 |
Noncash lease expense | 11,902 | 10,329 |
Release of acquisition related tax and legal contingency | (1,830) | 0 |
Loss in equity method investment, before tax | 645 | 531 |
Deferred income taxes | (9,189) | (10,829) |
Noncash compensation related to stock plans and changes in the fair value of DCP | 16,017 | 17,789 |
Provision for doubtful accounts | 70 | 879 |
Deferred hedge gain | (2,556) | (3,095) |
Changes in operating assets and liabilities | ||
Trade accounts receivable | (73,474) | (85,156) |
Inventories | (28,066) | 50,219 |
Other current assets | (7,848) | 438 |
Trade accounts payable | 6,085 | (3,471) |
Income taxes payable | 520 | 79,542 |
Accrued liabilities and other current liabilities | (4,168) | 2,583 |
Other noncurrent assets and liabilities | (13,040) | (14,486) |
Net cash provided by operating activities | 222,365 | 398,177 |
Cash flows from investing activities | ||
Capital expenditures | (124,848) | (57,483) |
Acquisitions, net of cash (see Note 3) | (77,641) | (17,525) |
Purchases of equity investments | (1,495) | (712) |
Proceeds from sale of property and equipment | 1,869 | 622 |
Proceeds from sale of business | 0 | 8,544 |
Net cash used in investing activities | (202,115) | (66,554) |
Cash flows from financing activities | ||
Repurchase of common stock | (50,000) | 0 |
Proceeds from line of credit | 1,296 | 264 |
Repayments of line of credit and term loan | (20,080) | (17,362) |
Dividends paid | (34,694) | (33,679) |
Cash paid on behalf of employees for shares withheld | (7,554) | (7,398) |
Net cash used in financing activities | (111,032) | (58,175) |
Effect of exchange rate changes on cash and cash equivalents | 387 | (3,184) |
Net increase (decrease) in cash and cash equivalents | (90,395) | 270,264 |
Cash and cash equivalents at beginning of period | 429,822 | 300,742 |
Cash and cash equivalents at end of period | 339,427 | 571,006 |
Noncash activity during the period | ||
Noncash capital expenditures | 6,294 | 4,150 |
Dividends declared but not paid | $ 11,806 | $ 11,518 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation Principles of Consolidation The accompanying Condensed Consolidated Financial Statements include the accounts of Simpson Manufacturing Co., Inc. and its subsidiaries (collectively, the “Company”). Investments in 50% or less owned entities are accounted for using either the cost or the equity method. All significant intercompany transactions have been eliminated. Certain amounts in the Condensed Consolidated Financial Statements of the prior year have been reclassified to conform to the fiscal 2024 presentation. These reclassifications had no impact on the Company's Total Assets, Total Stockholders' Equity, Net sales or Net income in its Condensed Consolidated Financial Statements. Use of Estimates The preparation of the Condensed Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the Condensed Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting period. Management believes that these Condensed Consolidated Financial Statements include all normal and recurring adjustments necessary for a fair presentation under GAAP. Interim Reporting Period The accompanying unaudited quarterly Condensed Consolidated Financial Statements have been prepared in accordance with GAAP pursuant to the rules and regulations for reporting interim financial information and instructions on Form 10-Q. Accordingly, certain information and footnotes required by GAAP have been condensed or omitted. These interim statements should be read in conjunction with the audited consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023 (the “2023 Form 10-K”). The unaudited quarterly Condensed Consolidated Financial Statements have been prepared on the same basis as the audited consolidated financial statements and, in the opinion of management, contain all adjustments (consisting of only normal recurring adjustments) necessary to state fairly the financial information set forth therein in accordance with GAAP. The year-end Condensed Consolidated Balance Sheet data provided herein were derived from audited consolidated financial statements included in the 2023 Form 10-K, but do not include all disclosures required by GAAP. The Company’s quarterly results fluctuate. As a result, the results of operations for the interim periods presented are not necessarily indicative of the results to be expected for any future periods. Cash and Cash Equivalents The Company classifies investments that are highly liquid and have maturities of three months or less at the date of purchase as cash equivalents. Current Estimated Credit Loss - Allowance for doubtful accounts The Company maintains an allowance for doubtful accounts receivable for estimated future expected credit losses resulting from customers' failure to make payments on its accounts receivable. The Company determines the estimate of the allowance for doubtful accounts receivable by considering several factors, including (1) specific information on the financial condition and the current creditworthiness of customers, (2) credit rating, (3) payment history and historical experience, (4) aging of the accounts receivable, and (5) reasonable and supportable forecasts about collectability. The Company also reserves 100% of the amounts deemed uncollectible due to a customer's deteriorating financial condition or bankruptcy. Every quarter, the Company evaluates the customer group using the accounts receivable aging report and its best judgment when considering changes in customers' credit ratings, level of delinquency, customers' historical payments and loss experience, current market and economic conditions, and expectations of future market and economic conditions. The changes in the allowance for doubtful accounts receivable for the nine months ended September 30, 2024 are outlined in the table below: December 31, 2023 Expense (Deductions), net Write-Offs 1 September 30, 2024 Allowance for doubtful accounts $ 3,882 69 (899) $ 3,052 1 Amount is net of recoveries and the effect o f foreign currency fluctuations. Fair Value of Financial Instruments Fair value is an exit price representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between unrelated market participants. As such, fair value is a market-based measurement that is determined based on assumptions that unrelated market participants would use in pricing an asset or a liability. Assets and liabilities recorded at fair value are measured and classified under a three-tier fair valuation hierarchy based on the observability of the inputs available in the market: Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument; and Level 3 inputs are unobservable inputs based on the Company’s assumptions used to measure assets and liabilities at fair value. The fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The carrying amounts of trade accounts receivable, accounts payable, accrued liabilities and other current liabilities approximate fair value due to the short-term nature of these instruments. The fair values of the Company's investments and liabilities in the deferred compensation plan are classified as Level 1 within the fair value hierarchy, and are subject to investment risks. The fair values of interest rate, and foreign currency contracts are classified as Level 2 within the fair value hierarchy. The fair values of the Company’s contingent consideration related to acquisitions is classified as Level 3 within the fair value hierarchy, as these amounts are based on unobservable inpu ts such as management estimates and entity-specific assumptions and are evaluated on an ongoing basis. The following tables summarize the financial assets and financial liabilities measured at fair value for the Company as of September 30, 2024 and 2023: 2024 2023 (in thousands) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Cash equivalents (1) $ 53,688 $ — $ — $ 334,633 $ — $ — Term loan due 2027 (2) $ — $ 393,750 $ — $ — $ 416,250 $ — Revolver due 2027 (2) $ — $ 75,038 $ — $ — $ 150,038 $ — Derivative instruments - assets (3) $ — $ 14,199 $ — $ — $ 42,769 $ — Derivative instruments - liabilities (3) $ — $ 30,059 $ — $ — $ 9,327 $ — Investment in deferred compensation plan (4) $ 896 $ — $ — $ — $ — $ — Deferred compensation plan liabilities (4) $ 2,053 $ — $ — $ — $ — $ — Contingent considerations $ — $ — $ 6,587 $ — $ — $ 5,400 (1) The carrying amounts of cash equivalents, representing money market funds traded in an active market with relatively short maturities, are reported on the consolidated balance sheet as of September 30, 2024 and 2023 as a component of "Cash and cash equivalents". (2) The carrying amounts of our term loan and revolver approximate fair value as of September 30, 2024 based upon their terms and conditions in comparison to debt instruments with similar terms and conditions available on the same date. (3) Derivatives for interest rate, foreign exchange and forward swap contracts are discussed in Note 8. (4) Non-qualified deferred compensation plan. Derivative Instruments The Company uses derivative instruments as a risk management tool to mitigate the potential impact of certain market risks. Foreign currency and interest rate risk are the primary market risks the Company manages through the use of derivative instruments, which are accounted for as cash flow hedges or net investment hedges under the accounting standards and carried at fair value as other current or noncurrent assets or as other current or other long-term liabilities. Assets and liabilities with the legal right of offset are not offset in the consolidated balance sheets. Net deferred gains and losses related to changes in fair value of cash flow hedges are included in accumulated other comprehensive income/loss (“OCI”), a component of stockholders' equity, and are reclassified into the line item in the Condensed Consolidated Statement of Earnings and Comprehensive Income in which the hedged items are recorded in the same period the hedged item affects earnings. The effective portion of gains and losses attributable to net investment hedges is recorded net of tax to OCI to offset the change in the carrying value of the net investment being hedged. Recognition in earnings of amounts previously recorded to OCI are limited to circumstances such as complete or substantially complete liquidation of the net investment in the hedged foreign operation. Changes in fair value of any derivatives that are determined to be ineffective are immediately reclassified from OCI into earnings. Deferred Compensation Plan The Company established a non-qualified deferred compensation plan ("DCP" or “the Plan”) in April 2023 for eligible employees and members of the Board of Directors. The Plan provides eligible participants the opportunity to defer and invest a specified percentage of their compensation, including the Company stock awards upon vesting. The Plan is a non-qualified plan that is informally funded by assets in a rabbi trust, which restricts the Company's use and access to the assets held but is subject to the claims of the Company's creditors in the event that the Company becomes insolvent. The amount of compensation to be deferred by participants are based on their own elections and are adjusted for any investment changes that the participants direct. This plan does not provide for employer contributions. The Plan permits diversification of vested shares (common stock) into other equity securities subject to a six-month holding period subsequent to vesting. Accounting for deferred common stock will be under either plan C or plan D. Accounting will depend on whether or not the employee has diversified the common stock. Under plan C, diversification is permitted but the employee has not diversified. Under plan D, diversification is permitted and the employee has diversified. For common stock that have not been diversified, the employer stock held in the deferred compensation plan is classified in a manner similar to treasury stock and presented separately on the Condensed Consolidated Balance Sheets as Company common stock held by the non-qualified deferred compensation plan. Common stock will be recorded at fair value of the stock at the time it vested, subsequent changes in the value of the common stock is not recognized. The deferred compensation obligations are measured independently at fair value of the common stock with a corresponding charge or credit to compensation cost. Fair value is determined as the product of the common stock and the closing price of the stock each reporting period. Under plan D, assets held by the rabbi trust are subject to applicable GAAP. The deferred compensation obligation is measured independently at fair value of the underlying assets. The Company previously presented certain DCP transactions within existing financial statement line items of the condensed consolidated balance sheets and condensed consolidated statement of stockholders’ equity for periods ended September 30, 2023 and December 31, 2023. The Company has reflected these DCP transactions related corrections in the accompanying condensed consolidated balance sheets and condensed consolidated statement of stockholders’ equity for the three and nine months ended September 30, 2024. The transactions resulted in reclassifying equity balances related to "Non-qualified deferred compensation plan share awards" as mezzanine equity for $6.0 million and they were combined with stock-based compensation expense in the condensed consolidated statement of stockholders’ equity for the three and nine months ended September 30, 2024. The Company has evaluated the errors both qualitatively and quantitatively and has concluded that they have immaterial impact on the periods presented. Business Combinations and Asset Acquisitions Business combinations are accounted for under the acquisition method in accordance with ASC 805, Business Combinations. The acquisition method requires identifiable assets acquired and liabilities assumed and any noncontrolling interest in the business acquired be recognized and measured at fair value on the acquisition date, which is the date that the acquirer obtains control of the acquired business. The amount by which the fair value of consideration transferred as the purchase price exceeds the net fair value of assets acquired and liabilities assumed is recorded as goodwill. Acquisitions that do not meet the definition of a business under the ASC 805 are accounted for as an acquisition of assets, whereby all of the cost of the individual assets acquired and liabilities assumed, including certain transactions costs, are allocated on a relative fair value basis. Accordingly, goodwill is not recognized in an asset acquisition. Refer to Note 3 for more information. Revenue Recognition Generally, the Company's revenue contract with a customer exists when (1) the goods are shipped, services are rendered, and the related invoice is generated, (2) the duration of the contract does not extend beyond the promised goods or services already transferred and (3) the transaction price of each distinct promised product or service specified in the invoice is based on its relative stated standalone selling price. The Company recognizes revenue when it satisfies a performance obligation by transferring control of a product to a customer at a point in time. Our shipping terms provide the primary indicator of the transfer of control. The Company's general shipping terms are Incoterm C.P.T. (F.O.B. shipping point), where the title, and risk and rewards of ownership transfer at the point when the products are no longer on the Company's premises. Other Incoterms are allowed as exceptions depending on the product or service being sold and the nature of the sale. The Company recognizes revenue based on the consideration specified in the invoice with a customer, excluding any sales incentives, discounts, and amounts collected on behalf of third parties (i.e., governmental tax authorities). Based on historical experience with the customer, the customer's purchasing pattern, and its significant experience selling products, the Company concluded that a significant reversal in the cumulative amount of revenue recognized would not occur when the uncertainty (if any) is resolved (that is, when the total amount of purchases is known). Contract liability is recorded when consideration is received from a customer and the Company has remaining unsatisfied performance obligations. The Company presents taxes collected and remitted to governmental authorities on a net basis in the consolidated statements of operations. Additionally, all taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction and collected from a customer (e.g., sales, use, value added, and some excise taxes) are excluded from revenue. Refer to Note 2 for additional information. Leases The Company has operating leases for certain facilities, equipment, autos and data centers. As an accounting policy for short-term leases, the Company elected to not recognize a right-of-use (“ROU”) asset and liability if, at the commencement date, the lease (1) has a term of 12 months or less and (2) does not include renewal and purchase options that the Company is reasonably certain to exercise. Monthly payments on short-term leases are recognized on a straight-line basis over the full lease term. Stock-Based Compensation The Company recognizes stock-based compensation expense related to the estimated fair value of restricted stock awards on a straight-line basis, net of estimated forfeitures, over the requisite service period of the awards, which is generally the vesting term of three Income Taxes Income taxes are calculated using an asset and liability approach. The provision for income taxes includes federal, state and foreign taxes currently payable, and deferred taxes due to temporary differences between the financial statement and tax bases of assets and liabilities. In addition, future tax benefits are recognized to the extent that realization of such benefits is more likely than not. This method gives consideration to the future tax consequences of the deferred income tax items and immediately recognizes changes in income tax laws in the year of enactment. The Company uses an estimated annual tax rate to measure the tax benefit or tax expense recognized in each interim period. Net Income Per Share Basic net income per common share is computed based on the weighted-average number of common shares outstanding. Potentially dilutive shares are included in the diluted per-share calculations using the treasury stock method for all periods when the effect of their inclusion is dilutive. Accounting Standards Not Yet Adopted In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update (“ASU”) 2023-07 requiring enhanced segment disclosures. ASU 2023-07 requires disclosure of significant segment expenses regularly provided to the chief operating decision maker (“CODM”) included within segment operating profit or loss. Additionally, ASU 2023-07 requires a description of how the CODM utilizes segment operating profit or loss to assess segment performance. The requirements of ASU 2023-07 are effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The Company's annual reporting requirements will be effective for fiscal 2024 and interim reporting requirements will be effective beginning with the first quarter of fiscal 2025. Early adoption is permitted and retrospective application is required for all periods presented. The Company is in the process of analyzing the impact of ASU 2023-07 on its related Condensed Consolidated Financial Statements. In December 2023, the FASB issued ASU 2023-09 requiring enhanced income tax disclosures. ASU 2023-09 requires disclosure of specific categories and disaggregation of information in the rate reconciliation table. ASU 2023-09 also requires disclosure of disaggregated information related to income taxes paid, income or loss from continuing operations before income tax expense or benefit, and income tax expense or benefit from continuing operations. The requirements of ASU 2023-09 are effective for annual periods beginning after December 15, 2024. Early adoption is permitted and the amendments should be applied on a prospective basis. Retrospective application is permitted. The Company is in the process of analyzing the impact of ASU 2023-09 on its Condensed Consolidated Financial Statements. The Company does not believe any other new accounting pronouncements issued by the FASB that have not become effective will have a material impact on its Condensed Consolidated Financial Statements. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 9 Months Ended |
Sep. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers Disaggregated revenue The Company disaggregates net sales into the following major product groups as described in its segment information included in these interim financial statements under Note 1 Wood Construction Products Revenue . Wood construction products represented approximately 84.6% and 85.4% of total net sales for the nine months ended September 30, 2024 and 2023, respectively. Concrete Construction Products Revenue. Concrete construction products represented approximately 14.7% and 14.1% of total net sales for the nine months ended September 30, 2024 and 2023, respectively. Customer acceptance criteria. Generally, there are no customer acceptance criteria included in the Company's standard sales agreement with customers. When an arrangement with the customer does not meet the criteria to be accounted for as a revenue contract under the standard, the Company recognizes revenue in the amount of nonrefundable consideration received when the Company has transferred control of the goods or services and has stopped transferring (and has no obligation to transfer) additional goods or services. The Company offers certain customers discounts for paying invoices ahead of the due date, which are generally 30 to 60 days after the issue date. Other revenue . Service sales, representing after-market repair and maintenance, engineering activities and software license sales and services were approximately 0.7% of total net sales and recognized as the services are completed or by transferring control over a product to a customer at a point in time. Services may be sold separately or in bundled packages. The typical contract length for services is generally less than one year. For bundled packages, the Company accounts for individual services separately when they are distinct within the context of the contract. A distinct service is separately identifiable from other items in the bundled package if a customer can benefit from it on its own or with other resources that are readily available to the customer. The consideration (including any discounts) is allocated between separate services in a bundle based on their stand-alone selling prices. The stand-alone selling prices are determined based on the prices at which the Company separately sells the services. Reconciliation of contract balances Contract assets are the right to receive consideration in exchange for goods or services that the Company has transferred to a customer when that right is conditional on something other than the passage of time. Contract liabilities are recorded for any services billed to customers and not yet recognizable if the contract period has commenced or for the amount collected from customers in advance of the contract period commencing. Contract liabilities consist of billings in excess of costs and earnings and other deferred revenue on cancellable contracts. The time period between when consideration was received to when performa nce obligations are complete may not be significant. As of September 30, 2024 and 2023, the Company's contract liability was $10.3 million and immaterial, respectively. During the nine months ended September 30, 2024, the Company recognized $1.6 million of contract lia bility as income from the opening balance. The Company had no material contract assets from contract with customers. |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2024 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions On June 1, 2024, the Company completed the acquisition of all of the operating assets and assumed liabilities of Calculated Structured Designs, Inc. ("CSD"), a software development company providing solutions for the engineered wood, engineering, design and building industries in North America, Australia and the UK. On August 1, 2024, the Company completed the acquisition of all of the operating assets and assumed liabilities of Monet DeSauw Inc. and certain properties of Callaway Properties, LLC (together with its subsidiaries, “Monet”) for a total purchase consideration of approximately $59 million net of cash received and liabilities assumed. Monet specializes in the production of large-scale saws and material handling equipment for the truss industry in the United States. On September 1, 2024, the Company completed the acquisition of all of the operating assets and assumed liabilities of QuickFrames USA, LLC, a manufacturer of pre-engineered structural support systems for commercial construction with sales in North America. These business acquisitions were not material to the Company's consolidated financial statements, individually and in aggregate. Accordingly, pro-forma historical results of operations related to these business acquisitions during the quarter ended September 30, 2024 have not been presented. The Company has included the financial results of these business acquisitions in its consolidated financial statements from their respective acquisition dates. The following table summarizes the Company's preliminary purchase price allocations of assets acquired and liabilities assumed as of the acquisition dates for the nine months ended September 30, 2024, including the related estimated useful lives, where applicable: Amounts (in thousands) Estimated Useful Lives (in years) Net working capital $ 2,915 Property, plant, and equipment 396 1 - 5 Intangible assets 6 Customer relationships 14,478 7 Developed technology 27,786 5 - 10 Tradename and other 1,305 10 Goodwill 42,870 Liabilities assumed (10,482) Total net assets acquired and liabilities assumed $ 79,268 The valuations of assets acquired and liabilities assumed had not yet been finalized as of September 30, 2024, and finalization of the valuations during the measurement period could result in a change in the amounts recorded. The completion of the valuations will occur no later than one year from the acquisition dates as required by GAAP. The amount of goodwill generated from these acquisitions is deductible for tax purposes. |
Net Income Per Share
Net Income Per Share | 9 Months Ended |
Sep. 30, 2024 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | Net Income per Share The following shows a reconciliation of basic net earnings per share ("EPS") to diluted EPS: Three Months Ended Nine Months Ended (in thousands, except per share amounts) 2024 2023 2024 2023 Net income available to common stockholders $ 93,519 $ 104,021 $ 266,778 $ 299,185 Basic weighted-average shares outstanding 42,151 42,673 42,254 42,651 Dilutive effect of potential common stock equivalents 184 209 210 242 Diluted weighted-average shares outstanding 42,335 42,882 42,464 42,893 Net earnings per common share: Basic $ 2.22 $ 2.44 $ 6.31 $ 7.01 Diluted $ 2.21 $ 2.43 $ 6.28 $ 6.98 |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Company currently maintains the Simpson Manufacturing Co., Inc. Amended and Restated 2011 Incentive Plan (the “2011 Plan”) as its only equity incentive plan. Under the 2011 Plan, no more than 16.3 million shares of the Company’s common stock in aggregate may be issued, including shares already issued pursuant to prior awards granted under the 2011 Plan. Shares of the Company's common stock underlying awards to be issued pursuant to the 2011 Plan are registered under the Securities Act of 1933. Under the 2011 Plan, the Company may grant restricted stock and restricted stock units. The Company currently intends to award only performance-based stock units ("PSUs") and/or time-based restricted stock units ("RSUs"). The Company allocates stock-based compensation expense amongst cost of sales, research and development and other engineering expense, selling expense, or general and administrative expense based on the job functions performed by the employees to whom the stock-based compensation is awarded. Stock-based compensation capitalized in inventory was immaterial for all periods presented. The Company recognized stock-based compensation expense related to its equity plans for employees of $4.7 million and $6.6 million for the three months ended September 30, 2024 and 2023, respectively, and $15.1 million and $17.8 million for the nine months ended September 30, 2024 and 2023, respectively. During the nine months ended September 30, 2024, the Company granted an aggregate of 161,054 RSUs and PSUs to the Company's employees, including officers at an estimated weighted-average fair value of $177.60 per share based on the closing price (adjusted for certain market factors primarily the present value of dividends) of the Company's common stock on the grant date. The RSUs and PSUs granted to the Company's employees may be time-based, performance-based, or time and performance-based. Certain of the PSUs are granted to officers and key employees, where the number of performance-based awards to be issued is based on the achievement of certain Company performance criteria established in the award agreement over a cumulative three year period. These awards cliff vest after three years. In addition, these same officers and key employees also receive time-based RSUs, which vest pursuant to a three-year graded vesting schedule. Time based RSUs are granted to the Company's employees excluding officers and certain key employees, vest ratably over the four year vesting-term of the award. The Company’s seven non-employee directors are entitled to receive an aggregate of approximately $0.9 million in equity compensation annually under the Company's non-employee director compensation program. The number of shares ultimately granted are based on the average closing share price for the Company's common stock over the 60 day period prior to approval of the award in the second quarter of each year. In May 2024, the Company granted 4,692 shares of the Company's common stock to the non-employee directors, based on the average closing price of $173.89 per share and recognized $0.8 million of expense. |
Trade Accounts Receivable, Net
Trade Accounts Receivable, Net | 9 Months Ended |
Sep. 30, 2024 | |
Receivables [Abstract] | |
Trade Accounts Receivable, Net | Trade Accounts Receivable, net Trade accounts receivable consisted of the following: As of September 30, As of December 31, (in thousands) 2024 2023 2023 Trade accounts receivable $ 368,445 $ 360,233 $ 292,360 Allowance for doubtful accounts (3,052) (3,901) (3,881) Allowance for sales discounts and returns (5,043) (5,168) (4,504) $ 360,350 $ 351,164 $ 283,975 |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2024 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories The components of inventories are as follows: As of September 30, As of December 31, (in thousands) 2024 2023 2023 Raw materials $ 195,077 $ 144,268 $ 167,177 In-process products 57,657 52,633 57,432 Finished products 330,646 307,545 326,966 $ 583,380 $ 504,446 $ 551,575 |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Sep. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments The Company enters into derivative instrument agreements, including forward foreign currency exchange contracts, interest rate swaps, and cross currency swaps to manage risk in connection with changes in foreign currency and interest rates. The Company hedges committed exposures and does not engage in speculative transactions. The Company only enters into derivative instrument agreements with counterparties who have highly rated credit. As of September 30, 2024, the aggregate notional amount of the Company's outstanding interest rate contracts, cross currency swap contracts, and EUR forward contract were $393.8 million, $412.8 million and $321.7 million, respectively. Changes in fair value of any forward contracts that are determined to be ineffective are immediately reclassified from OCI into earnings. There were no amounts recognized due to ineffectiveness during the three and nine months ended September 30, 2024 and September 30, 2023. The effects of fair value and cash flow hedge accounting on the Condensed Consolidated Statement of Earnings and Comprehensive Income for the nine months ended September 30, were as follows: 2024 2023 (in thousands) Cost of sales Interest income (expense), net and other finance costs Other & foreign exchange loss, net Cost of sales Interest income (expense), net and other finance costs Other & foreign exchange loss, net Total amounts of income and expense line items presented in the Condensed Consolidated Statement of Earnings in which the effects of fair value or cash flow hedges are recorded $ 916,551 $ 4,111 $ 352 $ 888,835 $ 18 $ (1,471) The effects of fair value and cash flow hedging Gain or (loss) on cash flow hedging relationships Interest contracts: Amount of gain or (loss) reclassified from OCI to earnings — 9,303 — — 11,409 — Cross currency swap contract Amount of gain or (loss) reclassified from OCI to earnings — 3,433 (4,900) — 4,088 6,508 Forward contract Amount of gain (loss) reclassified from OCI to earnings (188) — — 60 — — The effects of derivative instruments on the Condensed Consolidated Statement of Earnings and Comprehensive Income for the three months ended September 30, 2024 and 2023 were as follows: Cash Flow Hedging Relationships Gain (Loss) Recognized in OCI Location of Gain (Loss) Reclassified from OCI into Earnings Gain (Loss) Reclassified from OCI into Earnings (in thousands) 2024 2023 2024 2023 Interest rate contracts $ (7,000) $ 4,959 Interest expense $ 3,067 $ 4,302 Cross currency contracts (13,285) 12,156 Interest expense 898 1,483 Forward contracts — (122) FX gain (loss) (19,134) 11,753 Cost of goods sold — (20) Total $ (20,285) $ 16,993 $ (15,169) $ 17,518 The effects of derivative instruments on the Condensed Consolidated Statement of Earnings and Comprehensive Income for the nine months ended September 30, 2024 and 2023 were as follows: Cash Flow Hedging Relationships Gain (Loss) Recognized in OCI Location of Gain (Loss) Reclassified from OCI into Earnings Gain (Loss) Reclassified from OCI into Earnings (in thousands) 2024 2023 2024 2023 Interest rate contracts $ 2,173 $ 11,505 Interest expense $ 9,303 $ 11,409 Cross currency contracts 3,048 4,137 Interest expense 3,433 4,088 Forward contracts — (535) FX gain (loss) (4,900) 6,508 Cost of goods sold (188) 60 Total $ 5,221 $ 15,107 $ 7,648 $ 22,065 For the three months ending September 30, 2024 and September 30, 2023 losses on the net investment hedge of $8.8 million and $3.2 million were included in OCI, respectively. For the three months ending September 30, 2024 and September 30, 2023, excluded gains of $1.3 million and $1.3 million were reclassified from OCI to interest expense, respectively. For the nine months ending September 30, 2024 and September 30, 2023 gains on the net investment hedge of $1.0 million and $1.1 million were included in OCI, respectively. For the nine months ending September 30, 2024 and September 30, 2023, excluded gains of $3.8 million and $3.8 million were reclassified from OCI to interest expense, respectively. As of September 30, 2024, the aggregate fair values of the Company’s derivative instruments on the Condensed Consolidated Balance Sheet were comprised of an asset of $14.2 million, of which $10.4 million is included in other current assets, and the balance of $3.8 million as other non-current assets, and of a non-current liability of $30.1 million included as deferred income tax and other long-term liabilities. |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 9 Months Ended |
Sep. 30, 2024 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, Net | Property, Plant and Equipment, net Property, plant and equipment consisted of the following: As of September 30, As of December 31, (in thousands) 2024 2023 2023 Land $ 62,332 $ 50,995 $ 62,587 Buildings and site improvements 249,921 233,694 246,021 Leasehold improvements 10,899 7,690 7,782 Machinery and equipment 562,199 496,999 516,017 885,351 789,378 832,407 Less: accumulated depreciation and amortization (514,009) (460,625) (474,974) 371,342 328,753 357,433 Capital projects in progress 124,480 53,755 61,179 Total $ 495,822 $ 382,508 $ 418,612 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets, net Goodwill by segment were as follows: As of September 30, As of December 31, (in thousands) 2024 2023 2023 North America $ 144,369 $ 101,487 $ 101,558 Europe 405,257 380,699 399,693 Asia/Pacific 1,320 1,227 1,299 Total $ 550,946 $ 483,413 $ 502,550 Definite-lived and indefinite-lived assets, net, by segment were as follows: As of September 30, 2024 Gross Net Carrying Accumulated Carrying (in thousands) Amount Amortization Amount North America $ 107,561 $ (37,131) $ 70,430 Europe 389,148 (67,801) 321,347 Asia/Pacific 4,296 (556) 3,740 Total $ 501,005 $ (105,488) $ 395,517 As of September 30, 2023 Gross Net (in thousands) Carrying Accumulated Carrying North America $ 64,189 $ (32,876) $ 31,313 Europe 369,827 (48,510) 321,317 Asia/Pacific 4,025 (205) 3,820 Total $ 438,041 $ (81,591) $ 356,450 As of December 31, 2023 Gross Net (in thousands) Carrying Accumulated Carrying North America $ 64,190 $ (33,740) $ 30,450 Europe 384,432 (53,493) 330,939 Asia/Pacific 4,240 (290) 3,950 Total $ 452,862 $ (87,523) $ 365,339 Intangible assets consist of definite-lived and indefinite-lived assets. Definite-lived intangible assets include customer relationships, patents, unpatented technology, and non-compete agreements. Amortization of definite-lived intangible assets was $6.6 million and $5.9 million for the three months ended September 30, 2024 and 2023, respectively, and was $18.0 million and $17.5 million for the nine months ended September 30, 2024 and 2023, respectively. The weighted-average amortization period for all amortizable intangibles on a combined basis is 9.5 years. Indefinite-lived intangible assets totaled $95.7 million, $90.4 million, and $94.2 million as of September 30, 2024, and 2023 and December 31, 2023, respectively. At September 30, 2024, the estimated future amortization of definite-lived intangible assets was as follows: (in thousands) Remaining three months of 2024 $ 7,513 2025 29,204 2026 28,552 2027 28,369 2028 28,619 Thereafter 177,498 $ 299,755 The changes in the carrying amount of goodwill and intangible assets for the nine months ended September 30, 2024, were as follows: Intangible (in thousands) Goodwill Assets Balance at December 31, 2023 $ 502,550 $ 365,339 Acquisitions 1 42,870 43,372 Amortization — (17,965) Foreign exchange 5,526 4,771 Balance at September 30, 2024 $ 550,946 $ 395,517 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2024 | |
Leases [Abstract] | |
Leases | Leases The Company has operating leases for certain facilities, equipment and automobiles. The existing operating leases expire at various dates through 2039, some of which include options to extend the leases for up to five years. The Company measured the lease liability at the present value of the lease payments to be made over the lease term. The lease payments are discounted using the Company's incremental borrowing rate. The Company measured the ROU assets at the amount at which the lease liability is recognized plus initial direct costs incurred or prepayment amounts. The ROU assets are amortized on a straight-line basis over the lease term. The following table provides a summary of leases included on the Condensed Consolidated Balance Sheets as of September 30, 2024 and 2023 and December 31, 2023, Condensed Consolidated Statements of Earnings and Comprehensive Income, and Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2024 and 2023: Condensed Consolidated Balance Sheets Line Item September 30, December 31, (in thousands) 2024 2023 2023 Operating leases Assets Operating leases Operating lease right-of-use assets $ 87,097 $ 66,144 $ 68,792 Liabilities Operating - current Accrued expenses and other current liabilities $ 18,094 $ 13,617 $ 14,954 Operating - noncurrent Operating lease liabilities 70,496 53,808 55,324 Total operating lease liabilities $ 88,590 $ 67,425 $ 70,278 The components of lease expense were as follows: Condensed Consolidated Statements of Earnings and Comprehensive Income Line Item Three Months Ended September 30, (in thousands) 2024 2023 Operating lease cost General administrative expenses and $ 5,599 $ 4,434 Other Information Supplemental cash flow information related to leases is as follows: Three Months Ended September 30, (in thousands) 2024 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 5,559 $ 4,166 Operating right-of-use assets obtained in exchange for new lease 5,862 6,437 The following is a schedule, by years, of maturities of lease liabilities as of September 30, 2024: (in thousands) Operating Leases Remaining three months of 2024 $ 5,741 2025 22,015 2026 18,613 2027 14,388 2028 12,501 2029 10,164 Thereafter 21,061 Total lease payments 104,483 Less: Present value discount (15,893) Total lease liabilities $ 88,590 The following table summarizes the Company's operating lease terms and discount rates as of September 30, 2024 and 2023: 2024 2023 Weighted-average remaining lease terms (in years) 6.5 5.9 Weighted-average discount rate 5.1 % 4.8 % |
Leases | Leases The Company has operating leases for certain facilities, equipment and automobiles. The existing operating leases expire at various dates through 2039, some of which include options to extend the leases for up to five years. The Company measured the lease liability at the present value of the lease payments to be made over the lease term. The lease payments are discounted using the Company's incremental borrowing rate. The Company measured the ROU assets at the amount at which the lease liability is recognized plus initial direct costs incurred or prepayment amounts. The ROU assets are amortized on a straight-line basis over the lease term. The following table provides a summary of leases included on the Condensed Consolidated Balance Sheets as of September 30, 2024 and 2023 and December 31, 2023, Condensed Consolidated Statements of Earnings and Comprehensive Income, and Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2024 and 2023: Condensed Consolidated Balance Sheets Line Item September 30, December 31, (in thousands) 2024 2023 2023 Operating leases Assets Operating leases Operating lease right-of-use assets $ 87,097 $ 66,144 $ 68,792 Liabilities Operating - current Accrued expenses and other current liabilities $ 18,094 $ 13,617 $ 14,954 Operating - noncurrent Operating lease liabilities 70,496 53,808 55,324 Total operating lease liabilities $ 88,590 $ 67,425 $ 70,278 The components of lease expense were as follows: Condensed Consolidated Statements of Earnings and Comprehensive Income Line Item Three Months Ended September 30, (in thousands) 2024 2023 Operating lease cost General administrative expenses and $ 5,599 $ 4,434 Other Information Supplemental cash flow information related to leases is as follows: Three Months Ended September 30, (in thousands) 2024 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 5,559 $ 4,166 Operating right-of-use assets obtained in exchange for new lease 5,862 6,437 The following is a schedule, by years, of maturities of lease liabilities as of September 30, 2024: (in thousands) Operating Leases Remaining three months of 2024 $ 5,741 2025 22,015 2026 18,613 2027 14,388 2028 12,501 2029 10,164 Thereafter 21,061 Total lease payments 104,483 Less: Present value discount (15,893) Total lease liabilities $ 88,590 The following table summarizes the Company's operating lease terms and discount rates as of September 30, 2024 and 2023: 2024 2023 Weighted-average remaining lease terms (in years) 6.5 5.9 Weighted-average discount rate 5.1 % 4.8 % |
Debt
Debt | 9 Months Ended |
Sep. 30, 2024 | |
Debt Disclosure [Abstract] | |
Debt | Debt As of September 30, 2024, the Company had $468.8 million, excluding deferred financing costs, outstanding under its Amended and Restated Credit Facility. The Company had outstanding balances of $566.3 million and $485.7 million under the Amended and Restated Credit Facility as of September 30, 2023, and December 31, 2023, respectively. The following is a schedule, by years, of maturities for the remaining term loan facility as of September 30, 2024: (in thousands) Remaining Periods of Term Loan Remaining three months of 2024 $ 5,625 2025 22,500 2026 22,500 2027 343,125 Total loan outstanding $ 393,750 The $75.0 million outstanding under the revolving credit facility is due on March 31, 2027. The Company was in compliance with its financial covenants under the Amended and Restated Credit Facility as of September 30, 2024. Certain of the Company's domestic subsidiaries are guarantors for a credit agreement between certain of its foreign subsidiaries and institutional lenders that is in addition to the Amended and Restated Credit Facility. As of September 30, 2024, all of the Company's credit facilities provide a total of $381.9 million in available borrowing capacity and an irrevocable standby letter of credit in support of various insurance deductibles. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Environmental The Company’s policy with regard to environmental liabilities is to accrue for future environmental assessments and remediation costs when information becomes available that indicates that it is probable that the Company is liable for any related claims and assessments and the amount of the liability is reasonably estimable. The Company does not believe that any such matters will have a material adverse effect on the Company’s financial condition, cash flows or results of operations. Litigation and Potential Claims From time to time, the Company is involved in various legal proceedings and other matters arising in the normal course of business. Corrosion, hydrogen embrittlement, cracking, material hardness, wood pressure-treating chemicals, misinstallations, misuse, design and assembly flaws, manufacturing defects, labeling defects, product formula defects, inaccurate chemical mixes, adulteration, environmental conditions, or other factors can contribute to failure of fasteners, connectors, anchors, adhesives, specialty chemicals, such as fiber reinforced polymers, and tool products. In addition, inaccuracies may occur in product information, descriptions and instructions found in catalogs, packaging, data sheets, and the Company’s website. The resolution of any claim or litigation is subject to inherent uncertainty and could have a material adverse effect on the Company’s financial condition, cash flows or results of operations. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2024 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company is organized into three reporting segments defined by the regions where the Company’s products are manufactured, marketed and distributed to the Company's customers. The three regional segments are the North America segment (comprised primarily of the Company’s operations in the U.S. and Canada), the Europe segment, and the Asia/Pacific segment (comprised of the Company’s operations in Asia, the South Pacific, and the Middle East). These segments are similar in several ways, including the types of materials used, the production processes, the distribution channels and the product applications. The Administrative & All Other line item primarily includes expenses such as self-insured workers compensation claims for employees, stock-based compensation for certain members of management, adjustments related to non-qualified deferred compensation plan, interest expense, foreign exchange gains or losses and income tax expense, as well as revenues and expenses related to real estate activities. The following table illustrates certain measurements used by management to assess the performance of the segments described above as of or the following periods: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2024 2023 2024 2023 Net Sales North America $ 461,356 $ 456,820 $ 1,331,126 $ 1,328,615 Europe 121,170 119,043 370,985 371,074 Asia/Pacific 4,627 4,221 12,599 12,404 Total $ 587,153 $ 580,084 $ 1,714,710 $ 1,712,093 Sales to Other Segments* North America $ 711 $ 1,064 $ 2,410 $ 3,756 Europe 1,032 1,327 3,695 4,399 Asia/Pacific 6,146 8,022 23,716 21,880 Total $ 7,889 $ 10,413 $ 29,821 $ 30,035 Income (Loss) from Operations North America $ 123,253 $ 135,633 $ 354,212 $ 393,456 Europe 12,635 15,450 33,037 42,894 Asia/Pacific 260 477 (617) 718 Administrative and all other (11,294) (11,347) (33,507) (33,472) Total $ 124,854 $ 140,213 $ 353,125 $ 403,596 * Sales to other segments are eliminated upon consolidation. As of As of September 30, December 31, (in thousands) 2024 2023 2023 Total Assets North America $ 2,013,641 $ 1,675,344 $ 1,745,341 Europe 751,419 687,992 716,396 Asia/Pacific 48,618 36,416 38,719 Administrative and all other 83,781 415,735 204,268 Total $ 2,897,459 $ 2,815,487 $ 2,704,724 Cash collected by the Company’s U.S. subsidiaries is routinely transferred into the Company’s cash management accounts and, therefore is in the total assets of “Administrative and all other". Cash and cash equivalent balances in the “Administrative and all other” segment were $208.3 million, $465.3 million and $368.6 million, as of September 30, 2024 and 2023, and December 31, 2023, respectively. Also included in the total assets of "Administrative and all other" are intercompany borrowings due from the Europe segment. Included in the total assets of each segment are net intercompany borrowings due to and from the other segments. The Company’s wood construction products include connectors, truss plates, fastening systems, fasteners and pre-fabricated shearwalls and are used for connecting and strengthening wood-based construction primarily in the residential and commercial construction market. Its concrete construction products include adhesives, specialty chemicals, mechanical anchors, carbide drill bits, powder actuated tools and reinforcing fiber materials and are used for restoration, protection or strengthening concrete, masonry and steel construction in residential, industrial, commercial and infrastructure construction. The following table illustrates the distribution of the Company’s net sales by product group as additional information for the three and nine months ended September 30, 2024 and 2023: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2024 2023 2024 2023 Wood construction products $ 494,379 $ 491,308 $ 1,450,972 $ 1,461,442 Concrete construction products 86,715 84,141 251,893 242,133 Other 6,059 4,635 11,845 8,518 Total $ 587,153 $ 580,084 $ 1,714,710 $ 1,712,093 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Dividend Declared On October 23, 2024, the Company’s Board of Directors (the "Board") declared a quarterly cash dividend of $0.28 per share, estimated to be $11.7 million in total. The dividend will be payable on January 23, 2025, to the Company's stockholders of record on January 2, 2025. Share Repurchase Authorization On October 23, 2024 , the Board authorized the Company to repurchase up to $100.0 million of the Company's common stock, effective January 1, 2025 through December 31, 2025. Share Repurchases From October 1, 2024 to November 5, 2024, the Company repurchased an additional 275,906 shares of the Company’s common stock in the open market at an average price of $181.22 per share, for a total of $50.0 million . As a result, the Company completed purchase of all of $100.0 million of shares that were previously authorized. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2024 | Sep. 30, 2023 | Sep. 30, 2024 | Sep. 30, 2023 | |
Pay vs Performance Disclosure | ||||
Net income | $ 93,519 | $ 104,021 | $ 266,778 | $ 299,185 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Sep. 30, 2024 | |
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 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2024 | Sep. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Principles of Consolidation | Principles of Consolidation The accompanying Condensed Consolidated Financial Statements include the accounts of Simpson Manufacturing Co., Inc. and its subsidiaries (collectively, the “Company”). Investments in 50% or less owned entities are accounted for using either the cost or the equity method. All significant intercompany transactions have been eliminated. Certain amounts in the Condensed Consolidated Financial Statements of the prior year have been reclassified to conform to the fiscal 2024 presentation. These reclassifications had no impact on the Company's Total Assets, Total Stockholders' Equity, Net sales or Net income in its Condensed Consolidated Financial Statements. | |
Use of Estimates | Use of Estimates The preparation of the Condensed Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the Condensed Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting period. Management believes that these Condensed Consolidated Financial Statements include all normal and recurring adjustments necessary for a fair presentation under GAAP. | |
Interim Period Reporting | Interim Reporting Period The accompanying unaudited quarterly Condensed Consolidated Financial Statements have been prepared in accordance with GAAP pursuant to the rules and regulations for reporting interim financial information and instructions on Form 10-Q. Accordingly, certain information and footnotes required by GAAP have been condensed or omitted. These interim statements should be read in conjunction with the audited consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023 (the “2023 Form 10-K”). The unaudited quarterly Condensed Consolidated Financial Statements have been prepared on the same basis as the audited consolidated financial statements and, in the opinion of management, contain all adjustments (consisting of only normal recurring adjustments) necessary to state fairly the financial information set forth therein in accordance with GAAP. The year-end Condensed Consolidated Balance Sheet data provided herein were derived from audited consolidated financial statements included in the 2023 Form 10-K, but do not include all disclosures required by GAAP. The Company’s quarterly results fluctuate. As a result, the results of operations for the interim periods presented are not necessarily indicative of the results to be expected for any future periods. | |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company classifies investments that are highly liquid and have maturities of three months or less at the date of purchase as cash equivalents. | |
Current Estimated Credit Loss - Allowance for Doubtful Accounts | Current Estimated Credit Loss - Allowance for doubtful accounts The Company maintains an allowance for doubtful accounts receivable for estimated future expected credit losses resulting from customers' failure to make payments on its accounts receivable. The Company determines the estimate of the allowance for doubtful accounts receivable by considering several factors, including (1) specific information on the financial condition and the current creditworthiness of customers, (2) credit rating, (3) payment history and historical experience, (4) aging of the accounts receivable, and (5) reasonable and supportable forecasts about collectability. The Company also reserves 100% of the amounts deemed uncollectible due to a customer's deteriorating financial condition or bankruptcy. Every quarter, the Company evaluates the customer group using the accounts receivable aging report and its best judgment when considering changes in customers' credit ratings, level of delinquency, customers' historical payments and loss experience, current market and economic conditions, and expectations of future market and economic conditions. | |
Accounting for Leases | Leases The Company has operating leases for certain facilities, equipment, autos and data centers. As an accounting policy for short-term leases, the Company elected to not recognize a right-of-use (“ROU”) asset and liability if, at the commencement date, the lease (1) has a term of 12 months or less and (2) does not include renewal and purchase options that the Company is reasonably certain to exercise. Monthly payments on short-term leases are recognized on a straight-line basis over the full lease term. | |
Net Income Per Common Share | Net Income Per Share Basic net income per common share is computed based on the weighted-average number of common shares outstanding. Potentially dilutive shares are included in the diluted per-share calculations using the treasury stock method for all periods when the effect of their inclusion is dilutive. | |
Equity Investments | Stock-Based Compensation The Company recognizes stock-based compensation expense related to the estimated fair value of restricted stock awards on a straight-line basis, net of estimated forfeitures, over the requisite service period of the awards, which is generally the vesting term of three | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value is an exit price representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between unrelated market participants. As such, fair value is a market-based measurement that is determined based on assumptions that unrelated market participants would use in pricing an asset or a liability. Assets and liabilities recorded at fair value are measured and classified under a three-tier fair valuation hierarchy based on the observability of the inputs available in the market: Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument; and Level 3 inputs are unobservable inputs based on the Company’s assumptions used to measure assets and liabilities at fair value. The fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The carrying amounts of trade accounts receivable, accounts payable, accrued liabilities and other current liabilities approximate fair value due to the short-term nature of these instruments. The fair values of the Company's investments and liabilities in the deferred compensation plan are classified as Level 1 within the fair value hierarchy, and are subject to investment risks. The fair values of interest rate, and foreign currency contracts are classified as Level 2 within the fair value hierarchy. The fair values of the Company’s contingent consideration related to acquisitions is classified as Level 3 within the fair value hierarchy, as these amounts are based on unobservable inpu ts such as management estimates and entity-specific assumptions and are evaluated on an ongoing basis. | |
Derivative Instruments - Foreign Currency Contracts | Derivative Instruments The Company uses derivative instruments as a risk management tool to mitigate the potential impact of certain market risks. Foreign currency and interest rate risk are the primary market risks the Company manages through the use of derivative instruments, which are accounted for as cash flow hedges or net investment hedges under the accounting standards and carried at fair value as other current or noncurrent assets or as other current or other long-term liabilities. Assets and liabilities with the legal right of offset are not offset in the consolidated balance sheets. Net deferred gains and losses related to changes in fair value of cash flow hedges are included in accumulated other comprehensive income/loss (“OCI”), a component of stockholders' equity, and are reclassified into the line item in the Condensed Consolidated Statement of Earnings and Comprehensive Income in which the hedged items are recorded in the same period the hedged item affects earnings. The effective portion of gains and losses attributable to net investment hedges is recorded net of tax to OCI to offset the change in the carrying value of the net investment being hedged. Recognition in earnings of amounts previously recorded to OCI are limited to circumstances such as complete or substantially complete liquidation of the net investment in the hedged foreign operation. Changes in fair value of any derivatives that are determined to be ineffective are immediately reclassified from OCI into earnings. | |
Business Combinations and Asset Acquisitions | Business Combinations and Asset Acquisitions Business combinations are accounted for under the acquisition method in accordance with ASC 805, Business Combinations. The acquisition method requires identifiable assets acquired and liabilities assumed and any noncontrolling interest in the business acquired be recognized and measured at fair value on the acquisition date, which is the date that the acquirer obtains control of the acquired business. The amount by which the fair value of consideration transferred as the purchase price exceeds the net fair value of assets acquired and liabilities assumed is recorded as goodwill. Acquisitions that do not meet the definition of a business under the ASC 805 are accounted for as an acquisition of assets, whereby all of the cost of the individual assets acquired and liabilities assumed, including certain transactions costs, are allocated on a relative fair value basis. Accordingly, goodwill is not recognized in an asset acquisition. Refer to Note 3 for more information. | |
Revenue Recognition | Revenue Recognition Generally, the Company's revenue contract with a customer exists when (1) the goods are shipped, services are rendered, and the related invoice is generated, (2) the duration of the contract does not extend beyond the promised goods or services already transferred and (3) the transaction price of each distinct promised product or service specified in the invoice is based on its relative stated standalone selling price. The Company recognizes revenue when it satisfies a performance obligation by transferring control of a product to a customer at a point in time. Our shipping terms provide the primary indicator of the transfer of control. The Company's general shipping terms are Incoterm C.P.T. (F.O.B. shipping point), where the title, and risk and rewards of ownership transfer at the point when the products are no longer on the Company's premises. Other Incoterms are allowed as exceptions depending on the product or service being sold and the nature of the sale. The Company recognizes revenue based on the consideration specified in the invoice with a customer, excluding any sales incentives, discounts, and amounts collected on behalf of third parties (i.e., governmental tax authorities). Based on historical experience with the customer, the customer's purchasing pattern, and its significant experience selling products, the Company concluded that a significant reversal in the cumulative amount of revenue recognized would not occur when the uncertainty (if any) is resolved (that is, when the total amount of purchases is known). Contract liability is recorded when consideration is received from a customer and the Company has remaining unsatisfied performance obligations. The Company presents taxes collected and remitted to governmental authorities on a net basis in the consolidated statements of operations. Additionally, all taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction and collected from a customer (e.g., sales, use, value added, and some excise taxes) are excluded from revenue. Refer to Note 2 for additional information. | |
Income Taxes | Income Taxes Income taxes are calculated using an asset and liability approach. The provision for income taxes includes federal, state and foreign taxes currently payable, and deferred taxes due to temporary differences between the financial statement and tax bases of assets and liabilities. In addition, future tax benefits are recognized to the extent that realization of such benefits is more likely than not. This method gives consideration to the future tax consequences of the deferred income tax items and immediately recognizes changes in income tax laws in the year of enactment. The Company uses an estimated annual tax rate to measure the tax benefit or tax expense recognized in each interim period. | |
Recently Adopted Accounting Standards and Recently Issued Accounting Standards Not Yet Adopted | Accounting Standards Not Yet Adopted In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update (“ASU”) 2023-07 requiring enhanced segment disclosures. ASU 2023-07 requires disclosure of significant segment expenses regularly provided to the chief operating decision maker (“CODM”) included within segment operating profit or loss. Additionally, ASU 2023-07 requires a description of how the CODM utilizes segment operating profit or loss to assess segment performance. The requirements of ASU 2023-07 are effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The Company's annual reporting requirements will be effective for fiscal 2024 and interim reporting requirements will be effective beginning with the first quarter of fiscal 2025. Early adoption is permitted and retrospective application is required for all periods presented. The Company is in the process of analyzing the impact of ASU 2023-07 on its related Condensed Consolidated Financial Statements. In December 2023, the FASB issued ASU 2023-09 requiring enhanced income tax disclosures. ASU 2023-09 requires disclosure of specific categories and disaggregation of information in the rate reconciliation table. ASU 2023-09 also requires disclosure of disaggregated information related to income taxes paid, income or loss from continuing operations before income tax expense or benefit, and income tax expense or benefit from continuing operations. The requirements of ASU 2023-09 are effective for annual periods beginning after December 15, 2024. Early adoption is permitted and the amendments should be applied on a prospective basis. Retrospective application is permitted. The Company is in the process of analyzing the impact of ASU 2023-09 on its Condensed Consolidated Financial Statements. The Company does not believe any other new accounting pronouncements issued by the FASB that have not become effective will have a material impact on its Condensed Consolidated Financial Statements. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 9 Months Ended |
Sep. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Fair Value, by Balance Sheet Grouping | The following tables summarize the financial assets and financial liabilities measured at fair value for the Company as of September 30, 2024 and 2023: 2024 2023 (in thousands) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Cash equivalents (1) $ 53,688 $ — $ — $ 334,633 $ — $ — Term loan due 2027 (2) $ — $ 393,750 $ — $ — $ 416,250 $ — Revolver due 2027 (2) $ — $ 75,038 $ — $ — $ 150,038 $ — Derivative instruments - assets (3) $ — $ 14,199 $ — $ — $ 42,769 $ — Derivative instruments - liabilities (3) $ — $ 30,059 $ — $ — $ 9,327 $ — Investment in deferred compensation plan (4) $ 896 $ — $ — $ — $ — $ — Deferred compensation plan liabilities (4) $ 2,053 $ — $ — $ — $ — $ — Contingent considerations $ — $ — $ 6,587 $ — $ — $ 5,400 (1) The carrying amounts of cash equivalents, representing money market funds traded in an active market with relatively short maturities, are reported on the consolidated balance sheet as of September 30, 2024 and 2023 as a component of "Cash and cash equivalents". (2) The carrying amounts of our term loan and revolver approximate fair value as of September 30, 2024 based upon their terms and conditions in comparison to debt instruments with similar terms and conditions available on the same date. (3) Derivatives for interest rate, foreign exchange and forward swap contracts are discussed in Note 8. (4) Non-qualified deferred compensation plan. |
Accounts Receivable, Allowance for Credit Loss | The changes in the allowance for doubtful accounts receivable for the nine months ended September 30, 2024 are outlined in the table below: December 31, 2023 Expense (Deductions), net Write-Offs 1 September 30, 2024 Allowance for doubtful accounts $ 3,882 69 (899) $ 3,052 1 Amount is net of recoveries and the effect o f foreign currency fluctuations. |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
Sep. 30, 2024 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | The following table summarizes the Company's preliminary purchase price allocations of assets acquired and liabilities assumed as of the acquisition dates for the nine months ended September 30, 2024, including the related estimated useful lives, where applicable: Amounts (in thousands) Estimated Useful Lives (in years) Net working capital $ 2,915 Property, plant, and equipment 396 1 - 5 Intangible assets 6 Customer relationships 14,478 7 Developed technology 27,786 5 - 10 Tradename and other 1,305 10 Goodwill 42,870 Liabilities assumed (10,482) Total net assets acquired and liabilities assumed $ 79,268 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 9 Months Ended |
Sep. 30, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The following shows a reconciliation of basic net earnings per share ("EPS") to diluted EPS: Three Months Ended Nine Months Ended (in thousands, except per share amounts) 2024 2023 2024 2023 Net income available to common stockholders $ 93,519 $ 104,021 $ 266,778 $ 299,185 Basic weighted-average shares outstanding 42,151 42,673 42,254 42,651 Dilutive effect of potential common stock equivalents 184 209 210 242 Diluted weighted-average shares outstanding 42,335 42,882 42,464 42,893 Net earnings per common share: Basic $ 2.22 $ 2.44 $ 6.31 $ 7.01 Diluted $ 2.21 $ 2.43 $ 6.28 $ 6.98 |
Trade Accounts Receivable, Net
Trade Accounts Receivable, Net (Tables) | 9 Months Ended |
Sep. 30, 2024 | |
Receivables [Abstract] | |
Schedule of trade accounts receivable, net | As of September 30, As of December 31, (in thousands) 2024 2023 2023 Trade accounts receivable $ 368,445 $ 360,233 $ 292,360 Allowance for doubtful accounts (3,052) (3,901) (3,881) Allowance for sales discounts and returns (5,043) (5,168) (4,504) $ 360,350 $ 351,164 $ 283,975 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2024 | |
Inventory Disclosure [Abstract] | |
Schedule of carrying values of inventories | As of September 30, As of December 31, (in thousands) 2024 2023 2023 Raw materials $ 195,077 $ 144,268 $ 167,177 In-process products 57,657 52,633 57,432 Finished products 330,646 307,545 326,966 $ 583,380 $ 504,446 $ 551,575 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 9 Months Ended |
Sep. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments, Gain (Loss) | The effects of fair value and cash flow hedge accounting on the Condensed Consolidated Statement of Earnings and Comprehensive Income for the nine months ended September 30, were as follows: 2024 2023 (in thousands) Cost of sales Interest income (expense), net and other finance costs Other & foreign exchange loss, net Cost of sales Interest income (expense), net and other finance costs Other & foreign exchange loss, net Total amounts of income and expense line items presented in the Condensed Consolidated Statement of Earnings in which the effects of fair value or cash flow hedges are recorded $ 916,551 $ 4,111 $ 352 $ 888,835 $ 18 $ (1,471) The effects of fair value and cash flow hedging Gain or (loss) on cash flow hedging relationships Interest contracts: Amount of gain or (loss) reclassified from OCI to earnings — 9,303 — — 11,409 — Cross currency swap contract Amount of gain or (loss) reclassified from OCI to earnings — 3,433 (4,900) — 4,088 6,508 Forward contract Amount of gain (loss) reclassified from OCI to earnings (188) — — 60 — — The effects of derivative instruments on the Condensed Consolidated Statement of Earnings and Comprehensive Income for the three months ended September 30, 2024 and 2023 were as follows: Cash Flow Hedging Relationships Gain (Loss) Recognized in OCI Location of Gain (Loss) Reclassified from OCI into Earnings Gain (Loss) Reclassified from OCI into Earnings (in thousands) 2024 2023 2024 2023 Interest rate contracts $ (7,000) $ 4,959 Interest expense $ 3,067 $ 4,302 Cross currency contracts (13,285) 12,156 Interest expense 898 1,483 Forward contracts — (122) FX gain (loss) (19,134) 11,753 Cost of goods sold — (20) Total $ (20,285) $ 16,993 $ (15,169) $ 17,518 The effects of derivative instruments on the Condensed Consolidated Statement of Earnings and Comprehensive Income for the nine months ended September 30, 2024 and 2023 were as follows: |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 9 Months Ended |
Sep. 30, 2024 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant and equipment | As of September 30, As of December 31, (in thousands) 2024 2023 2023 Land $ 62,332 $ 50,995 $ 62,587 Buildings and site improvements 249,921 233,694 246,021 Leasehold improvements 10,899 7,690 7,782 Machinery and equipment 562,199 496,999 516,017 885,351 789,378 832,407 Less: accumulated depreciation and amortization (514,009) (460,625) (474,974) 371,342 328,753 357,433 Capital projects in progress 124,480 53,755 61,179 Total $ 495,822 $ 382,508 $ 418,612 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill, by segment | Goodwill by segment were as follows: As of September 30, As of December 31, (in thousands) 2024 2023 2023 North America $ 144,369 $ 101,487 $ 101,558 Europe 405,257 380,699 399,693 Asia/Pacific 1,320 1,227 1,299 Total $ 550,946 $ 483,413 $ 502,550 |
Schedule of net intangible assets, by segment | assets, net, by segment were as follows: As of September 30, 2024 Gross Net Carrying Accumulated Carrying (in thousands) Amount Amortization Amount North America $ 107,561 $ (37,131) $ 70,430 Europe 389,148 (67,801) 321,347 Asia/Pacific 4,296 (556) 3,740 Total $ 501,005 $ (105,488) $ 395,517 As of September 30, 2023 Gross Net (in thousands) Carrying Accumulated Carrying North America $ 64,189 $ (32,876) $ 31,313 Europe 369,827 (48,510) 321,317 Asia/Pacific 4,025 (205) 3,820 Total $ 438,041 $ (81,591) $ 356,450 As of December 31, 2023 Gross Net (in thousands) Carrying Accumulated Carrying North America $ 64,190 $ (33,740) $ 30,450 Europe 384,432 (53,493) 330,939 Asia/Pacific 4,240 (290) 3,950 Total $ 452,862 $ (87,523) $ 365,339 |
Schedule of estimated future amortization of intangible assets | At September 30, 2024, the estimated future amortization of definite-lived intangible assets was as follows: (in thousands) Remaining three months of 2024 $ 7,513 2025 29,204 2026 28,552 2027 28,369 2028 28,619 Thereafter 177,498 $ 299,755 |
Changes in the carrying amount of goodwill and intangible assets | The changes in the carrying amount of goodwill and intangible assets for the nine months ended September 30, 2024, were as follows: Intangible (in thousands) Goodwill Assets Balance at December 31, 2023 $ 502,550 $ 365,339 Acquisitions 1 42,870 43,372 Amortization — (17,965) Foreign exchange 5,526 4,771 Balance at September 30, 2024 $ 550,946 $ 395,517 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2024 | |
Leases [Abstract] | |
Balance Sheet Information | The following table provides a summary of leases included on the Condensed Consolidated Balance Sheets as of September 30, 2024 and 2023 and December 31, 2023, Condensed Consolidated Statements of Earnings and Comprehensive Income, and Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2024 and 2023: Condensed Consolidated Balance Sheets Line Item September 30, December 31, (in thousands) 2024 2023 2023 Operating leases Assets Operating leases Operating lease right-of-use assets $ 87,097 $ 66,144 $ 68,792 Liabilities Operating - current Accrued expenses and other current liabilities $ 18,094 $ 13,617 $ 14,954 Operating - noncurrent Operating lease liabilities 70,496 53,808 55,324 Total operating lease liabilities $ 88,590 $ 67,425 $ 70,278 |
Lease, Cost | The components of lease expense were as follows: Condensed Consolidated Statements of Earnings and Comprehensive Income Line Item Three Months Ended September 30, (in thousands) 2024 2023 Operating lease cost General administrative expenses and $ 5,599 $ 4,434 Other Information Supplemental cash flow information related to leases is as follows: Three Months Ended September 30, (in thousands) 2024 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 5,559 $ 4,166 Operating right-of-use assets obtained in exchange for new lease 5,862 6,437 The following table summarizes the Company's operating lease terms and discount rates as of September 30, 2024 and 2023: 2024 2023 Weighted-average remaining lease terms (in years) 6.5 5.9 Weighted-average discount rate 5.1 % 4.8 % |
Operating Lease, Liability, Maturity | The following is a schedule, by years, of maturities of lease liabilities as of September 30, 2024: (in thousands) Operating Leases Remaining three months of 2024 $ 5,741 2025 22,015 2026 18,613 2027 14,388 2028 12,501 2029 10,164 Thereafter 21,061 Total lease payments 104,483 Less: Present value discount (15,893) Total lease liabilities $ 88,590 |
Finance Lease, Liability, Maturity | The following is a schedule, by years, of maturities of lease liabilities as of September 30, 2024: (in thousands) Operating Leases Remaining three months of 2024 $ 5,741 2025 22,015 2026 18,613 2027 14,388 2028 12,501 2029 10,164 Thereafter 21,061 Total lease payments 104,483 Less: Present value discount (15,893) Total lease liabilities $ 88,590 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Maturities of Long-term Debt | The following is a schedule, by years, of maturities for the remaining term loan facility as of September 30, 2024: (in thousands) Remaining Periods of Term Loan Remaining three months of 2024 $ 5,625 2025 22,500 2026 22,500 2027 343,125 Total loan outstanding $ 393,750 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2024 | |
Segment Reporting [Abstract] | |
Schedule of performance of reportable segments | The following table illustrates certain measurements used by management to assess the performance of the segments described above as of or the following periods: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2024 2023 2024 2023 Net Sales North America $ 461,356 $ 456,820 $ 1,331,126 $ 1,328,615 Europe 121,170 119,043 370,985 371,074 Asia/Pacific 4,627 4,221 12,599 12,404 Total $ 587,153 $ 580,084 $ 1,714,710 $ 1,712,093 Sales to Other Segments* North America $ 711 $ 1,064 $ 2,410 $ 3,756 Europe 1,032 1,327 3,695 4,399 Asia/Pacific 6,146 8,022 23,716 21,880 Total $ 7,889 $ 10,413 $ 29,821 $ 30,035 Income (Loss) from Operations North America $ 123,253 $ 135,633 $ 354,212 $ 393,456 Europe 12,635 15,450 33,037 42,894 Asia/Pacific 260 477 (617) 718 Administrative and all other (11,294) (11,347) (33,507) (33,472) Total $ 124,854 $ 140,213 $ 353,125 $ 403,596 * Sales to other segments are eliminated upon consolidation. As of As of September 30, December 31, (in thousands) 2024 2023 2023 Total Assets North America $ 2,013,641 $ 1,675,344 $ 1,745,341 Europe 751,419 687,992 716,396 Asia/Pacific 48,618 36,416 38,719 Administrative and all other 83,781 415,735 204,268 Total $ 2,897,459 $ 2,815,487 $ 2,704,724 |
Schedule of net sales distributed by product group | he following table illustrates the distribution of the Company’s net sales by product group as additional information for the three and nine months ended September 30, 2024 and 2023: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2024 2023 2024 2023 Wood construction products $ 494,379 $ 491,308 $ 1,450,972 $ 1,461,442 Concrete construction products 86,715 84,141 251,893 242,133 Other 6,059 4,635 11,845 8,518 Total $ 587,153 $ 580,084 $ 1,714,710 $ 1,712,093 |
Basis of Presentation - Account
Basis of Presentation - Accounting for Stock-based Compensation (Details) | 9 Months Ended |
Sep. 30, 2024 | |
Stock-Based Compensation | |
Vesting period | 60 days |
Performance period | 3 years |
Minimum | |
Stock-Based Compensation | |
Vesting period | 3 years |
Maximum | |
Stock-Based Compensation | |
Vesting period | 4 years |
Basis of Presentation - Cash an
Basis of Presentation - Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Sep. 30, 2024 | Sep. 30, 2023 |
Fair Value, Inputs, Level 1 | ||
Cash and Cash Equivalents [Abstract] | ||
Fair value of cash and cash equivalents | $ 53,688 | $ 334,633 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value of cash and cash equivalents | 53,688 | 334,633 |
Long-Term Debt, Fair Value | 0 | 0 |
Contingent considerations | 0 | 0 |
Fair Value, Inputs, Level 1 | Deferred Compensation, Share-Based Payments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other Deferred Compensation Arrangements, Liability, Current and Noncurrent | 2,053 | 0 |
Fair Value, Inputs, Level 1 | Deferred Bonus and Profit Sharing Arrangement, Individual Contract, Type of Deferred Compensation [Domain] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Deferred Compensation Plan Assets | 896 | 0 |
Fair Value, Inputs, Level 1 | Foreign Exchange Contract | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative instruments, assets and liabilities | 0 | 0 |
Fair Value, Inputs, Level 1 | Derivative Contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative instruments, assets and liabilities | 0 | 0 |
Fair Value, Inputs, Level 1 | Revolving Credit Facility | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Revolving loan | 0 | 0 |
Fair Value, Inputs, Level 2 | ||
Cash and Cash Equivalents [Abstract] | ||
Fair value of cash and cash equivalents | 0 | 0 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value of cash and cash equivalents | 0 | 0 |
Long-Term Debt, Fair Value | 393,750 | 416,250 |
Contingent considerations | 0 | 0 |
Fair Value, Inputs, Level 2 | Deferred Compensation, Share-Based Payments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other Deferred Compensation Arrangements, Liability, Current and Noncurrent | 0 | 0 |
Fair Value, Inputs, Level 2 | Deferred Bonus and Profit Sharing Arrangement, Individual Contract, Type of Deferred Compensation [Domain] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Deferred Compensation Plan Assets | 0 | 0 |
Fair Value, Inputs, Level 2 | Foreign Exchange Contract | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative instruments, assets and liabilities | 9,327 | |
Fair Value, Inputs, Level 2 | Deferred Income Tax Charge | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative instruments, assets and liabilities | 30,059 | |
Fair Value, Inputs, Level 2 | Derivative Contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative instruments, assets and liabilities | 14,199 | 42,769 |
Fair Value, Inputs, Level 2 | Revolving Credit Facility | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Revolving loan | 75,038 | 150,038 |
Fair Value, Inputs, Level 3 | ||
Cash and Cash Equivalents [Abstract] | ||
Fair value of cash and cash equivalents | 0 | 0 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value of cash and cash equivalents | 0 | 0 |
Long-Term Debt, Fair Value | 0 | 0 |
Contingent considerations | 6,587 | 5,400 |
Fair Value, Inputs, Level 3 | Deferred Compensation, Share-Based Payments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other Deferred Compensation Arrangements, Liability, Current and Noncurrent | 0 | 0 |
Fair Value, Inputs, Level 3 | Deferred Bonus and Profit Sharing Arrangement, Individual Contract, Type of Deferred Compensation [Domain] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Deferred Compensation Plan Assets | 0 | 0 |
Fair Value, Inputs, Level 3 | Foreign Exchange Contract | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative instruments, assets and liabilities | 0 | 0 |
Fair Value, Inputs, Level 3 | Derivative Contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative instruments, assets and liabilities | 0 | 0 |
Fair Value, Inputs, Level 3 | Revolving Credit Facility | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Revolving loan | $ 0 | $ 0 |
Basis of Presentation - Deferre
Basis of Presentation - Deferred Compensation Plan (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2024 USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Reclassification of non-qualified deferred compensation expense | $ 6 |
Basis of Presentation - Accou_2
Basis of Presentation - Accounts Receivable, Allowance for Credit Loss (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2024 USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Percentage of uncollectible accounts receivable | 100% |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |
Allowance for doubtful accounts, beginning balance | $ 3,882 |
Expense (Deductions), net | 69 |
Write-Offs | (899) |
Allowance for doubtful accounts, ending balance | $ 3,052 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2024 | Sep. 30, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Contract with Customer, Liability | $ 10.3 | $ 0 |
Contract with Customer, Liability, Revenue Recognized | $ (1.6) | |
Revenue from Contract with Customer Benchmark | Wood construction products | ||
Disaggregation of Revenue [Line Items] | ||
Percentage of net sales | 84.60% | 85.40% |
Revenue from Contract with Customer Benchmark | Concrete construction products | ||
Disaggregation of Revenue [Line Items] | ||
Percentage of net sales | 14.70% | 14.10% |
Revenue from Contract with Customer Benchmark | Other | ||
Disaggregation of Revenue [Line Items] | ||
Percentage of net sales | 0.70% |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) $ in Millions | Aug. 01, 2024 USD ($) |
Monet DeSauw Inc. | |
Acquisitions | |
Purchase consideration | $ 59 |
Acquisitions - Preliminary Purc
Acquisitions - Preliminary Purchase (Details) - USD ($) $ in Thousands | 9 Months Ended | |||
Sep. 01, 2024 | Sep. 30, 2024 | Dec. 31, 2023 | Sep. 30, 2023 | |
Acquisitions | ||||
Goodwill | $ 550,946 | $ 502,550 | $ 483,413 | |
Estimated Useful Lives (in years) | 9 years 6 months | |||
Monet DeSauw Inc. | ||||
Acquisitions | ||||
Net working capital | $ 2,915 | |||
Property, plant, and equipment | 396 | |||
Goodwill | 42,870 | |||
Liabilities assumed | (10,482) | |||
Total net assets acquired and liabilities assumed | $ 79,268 | |||
Monet DeSauw Inc. | Minimum | ||||
Acquisitions | ||||
Estimated Useful Lives (in years) | 1 year | |||
Monet DeSauw Inc. | Maximum | ||||
Acquisitions | ||||
Estimated Useful Lives (in years) | 5 years | |||
Monet DeSauw Inc. | Customer Relationships [Member] | ||||
Acquisitions | ||||
Intangible assets | $ 14,478 | |||
Estimated Useful Lives (in years) | 7 years | |||
Monet DeSauw Inc. | Developed Technology | ||||
Acquisitions | ||||
Intangible assets | 27,786 | |||
Monet DeSauw Inc. | Developed Technology | Minimum | ||||
Acquisitions | ||||
Estimated Useful Lives (in years) | 5 years | |||
Monet DeSauw Inc. | Developed Technology | Maximum | ||||
Acquisitions | ||||
Estimated Useful Lives (in years) | 10 years | |||
Monet DeSauw Inc. | Trade Name | ||||
Acquisitions | ||||
Intangible assets | $ 1,305 | |||
Estimated Useful Lives (in years) | 10 years |
Net Income Per Share - Reconcil
Net Income Per Share - Reconciliation of EPS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2024 | Sep. 30, 2023 | Sep. 30, 2024 | Sep. 30, 2023 | |
Reconciliation of basic earnings per share ("EPS") to diluted EPS | ||||
Net income available to common stockholders | $ 93,519 | $ 104,021 | $ 266,778 | $ 299,185 |
Basic weighted-average shares outstanding | 42,151 | 42,673 | 42,254 | 42,651 |
Dilutive effect of potential common stock equivalents | 184 | 209 | 210 | 242 |
Diluted weighted-average shares outstanding | 42,335 | 42,882 | 42,464 | 42,893 |
Net income per common share: | ||||
Basic | $ 2.22 | $ 2.44 | $ 6.31 | $ 7.01 |
Diluted | $ 2.21 | $ 2.43 | $ 6.28 | $ 6.98 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
May 31, 2024 USD ($) | Sep. 30, 2024 USD ($) shares | Sep. 30, 2023 USD ($) | Sep. 30, 2024 USD ($) director $ / shares shares | Sep. 30, 2023 USD ($) | |
Stock-Based Compensation | |||||
Stock-based compensation expense | $ 4,700,000 | $ 6,600,000 | $ 15,100,000 | $ 17,800,000 | |
Vesting period | 60 days | ||||
Unrecognized compensation costs related to unvested share-based compensation arrangements | $ 29,500,000 | $ 29,500,000 | |||
Weighted-average period for recognition of unrecognized stock-based compensation expense | 2 years 3 months 18 days | ||||
Number Of Directors | director | 7,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Description | 4,692 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 173.89 | ||||
Compensation expense | $ 800,000 | ||||
Restricted Stock Units | |||||
Stock-Based Compensation | |||||
Awarded (in shares) | shares | 161,054 | ||||
Weighted average granted date fair value (in dollars per share) | $ / shares | $ 177.60 | ||||
Phantom Share Units (PSUs) | |||||
Stock-Based Compensation | |||||
Vesting period | 3 years | ||||
Non-Qualified Stock Options | Stock Option and Restricted Stock Unit Plan 2011 | |||||
Stock-Based Compensation | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Authorized | shares | 16,300,000 | 16,300,000 | |||
Employees | Restricted Stock Units | |||||
Stock-Based Compensation | |||||
Vesting period | 4 years | ||||
Director [Member] | |||||
Stock-Based Compensation | |||||
Allocated share based compensation expense | $ 900,000 |
Trade Accounts Receivable, Ne_2
Trade Accounts Receivable, Net (Details) - USD ($) $ in Thousands | Sep. 30, 2024 | Dec. 31, 2023 | Sep. 30, 2023 |
Receivables [Abstract] | |||
Trade accounts receivable | $ 368,445 | $ 292,360 | $ 360,233 |
Allowance for doubtful accounts | (3,052) | (3,881) | (3,901) |
Allowance for sales discounts and returns | (5,043) | (4,504) | (5,168) |
Trade accounts receivable, net | $ 360,350 | $ 283,975 | $ 351,164 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2024 | Dec. 31, 2023 | Sep. 30, 2023 |
Inventory Disclosure [Abstract] | |||
Raw materials | $ 195,077 | $ 167,177 | $ 144,268 |
In-process products | 57,657 | 57,432 | 52,633 |
Finished products | 330,646 | 326,966 | 307,545 |
Total inventories | $ 583,380 | $ 551,575 | $ 504,446 |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2024 | Sep. 30, 2023 | Sep. 30, 2024 | Sep. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Fair Value, Net Derivative Asset (Liability), Recurring Basis, Still Held, Accrued Interest, OCI | $ 1,300 | $ 1,300 | $ 3,800 | $ 3,800 |
Fair Value, Inputs, Level 2 | Derivative Contracts | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative instruments, assets and liabilities | (14,199) | (42,769) | (14,199) | (42,769) |
Other Current Assets | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Fair value hedge assets | 10,400 | 10,400 | ||
Other Noncurrent Assets | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Fair value hedge assets | 3,800 | 3,800 | ||
Interest contracts: | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative, notional amount | 393,800 | 393,800 | ||
Cross currency swap contract | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative Liability, Notional Amount | 412,800 | 412,800 | ||
Forward contract | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative, notional amount | 321,700 | 321,700 | ||
Foreign Exchange Contract | Fair Value, Inputs, Level 2 | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative instruments, assets and liabilities | (9,327) | (9,327) | ||
Deferred Income Tax Charge | Fair Value, Inputs, Level 2 | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative instruments, assets and liabilities | (30,059) | (30,059) | ||
Net Investment Hedging | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Other Comprehensive Income (Loss), Net Investment Hedge, Gain (Loss), before Reclassification and Tax | (8,800) | 3,200 | 1,000 | (1,100) |
Cash Flow Hedging | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain (Loss) Recognized in OCI | (20,285) | 16,993 | 5,221 | 15,107 |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax | (15,169) | 17,518 | 7,648 | 22,065 |
Cash Flow Hedging | Interest contracts: | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain (Loss) Recognized in OCI | (7,000) | 4,959 | 2,173 | 11,505 |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 9,303 | (11,409) | ||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax | 3,067 | 4,302 | 9,303 | 11,409 |
Cash Flow Hedging | Cross currency swap contract | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain (Loss) Recognized in OCI | (13,285) | 12,156 | 3,048 | 4,137 |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax | 898 | 1,483 | 3,433 | 4,088 |
Cash Flow Hedging | Forward contract | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain (Loss) Recognized in OCI | 0 | (122) | 0 | (535) |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax | 0 | (20) | (188) | 60 |
Cash Flow Hedging | Foreign Exchange Contract | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax | $ (19,134) | $ 11,753 | $ (4,900) | $ 6,508 |
Derivative Instruments - Schedu
Derivative Instruments - Schedule of Effects of Fair Value and Cash Flow Hedge (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2024 | Sep. 30, 2023 | Sep. 30, 2024 | Sep. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Other & foreign exchange gain (loss), net | $ (29) | $ (1,429) | $ 352 | $ (1,471) |
Cost of sales | 312,096 | 297,167 | 916,551 | 888,835 |
Foreign Currency Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net | (188) | 60 | ||
Cash Flow Hedging | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain (Loss) Recognized in OCI | (20,285) | 16,993 | $ 5,221 | 15,107 |
Interest contracts: | Cash Flow Hedging | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative Instruments, Income Statement Location of Gain (Loss) Reclassified from Accumulated OCI | — | |||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | $ (9,303) | 11,409 | ||
Gain (Loss) Recognized in OCI | (7,000) | 4,959 | 2,173 | 11,505 |
Cross currency swap contract | Cash Flow Hedging | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain (Loss) Recognized in OCI | (13,285) | 12,156 | $ 3,048 | 4,137 |
Cross currency swap contract | Cash Flow Hedging | Interest Expense | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative Instruments, Income Statement Location of Gain (Loss) Reclassified from Accumulated OCI | — | |||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | $ (3,433) | (4,088) | ||
Cross currency swap contract | Cash Flow Hedging | Foreign Currency Gain (Loss) | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | (4,900) | 6,508 | ||
Forward contract | Cash Flow Hedging | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Foreign Currency Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net | 0 | |||
Gain (Loss) Recognized in OCI | $ 0 | $ (122) | $ 0 | $ (535) |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands | Sep. 30, 2024 | Dec. 31, 2023 | Sep. 30, 2023 |
Property, Plant and Equipment | |||
Property, plant and equipment, gross | $ 885,351 | $ 832,407 | $ 789,378 |
Less: accumulated depreciation and amortization | (514,009) | (474,974) | (460,625) |
Property, plant and equipment, net | 371,342 | 357,433 | 328,753 |
Capital projects in progress | 124,480 | 61,179 | 53,755 |
Total | 495,822 | 418,612 | 382,508 |
Land | |||
Property, Plant and Equipment | |||
Property, plant and equipment, gross | 62,332 | 62,587 | 50,995 |
Buildings and site improvements | |||
Property, Plant and Equipment | |||
Property, plant and equipment, gross | 249,921 | 246,021 | 233,694 |
Leasehold improvements | |||
Property, Plant and Equipment | |||
Property, plant and equipment, gross | 10,899 | 7,782 | 7,690 |
Machinery and equipment | |||
Property, Plant and Equipment | |||
Property, plant and equipment, gross | $ 562,199 | $ 516,017 | $ 496,999 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Goodwill (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2024 | Dec. 31, 2023 | Sep. 30, 2023 | |
Carrying amount of goodwill by reportable segment | |||
Goodwill | $ 550,946 | $ 502,550 | $ 483,413 |
Goodwill, acquired | 42,870 | ||
North America | |||
Carrying amount of goodwill by reportable segment | |||
Goodwill | 144,369 | 101,558 | 101,487 |
Europe | |||
Carrying amount of goodwill by reportable segment | |||
Goodwill | 405,257 | 399,693 | 380,699 |
Asia/Pacific | |||
Carrying amount of goodwill by reportable segment | |||
Goodwill | $ 1,320 | $ 1,299 | $ 1,227 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Intangible Assets, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2024 | Sep. 30, 2023 | Sep. 30, 2024 | Sep. 30, 2023 | Dec. 31, 2023 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Amortization of Intangible Assets | $ 6,600 | $ 5,900 | $ 17,965 | $ 17,500 | |
Estimated Useful Lives (in years) | 9 years 6 months | ||||
Changes in gross carrying amount of finite-lived intangible assets | |||||
Gross carrying amount | 501,005 | 438,041 | $ 501,005 | 438,041 | $ 452,862 |
Accumulated amortization | (105,488) | (81,591) | (105,488) | (81,591) | (87,523) |
Net carrying amount | 395,517 | 356,450 | 395,517 | 356,450 | 365,339 |
Acquisitions | 43,372 | ||||
North America | |||||
Changes in gross carrying amount of finite-lived intangible assets | |||||
Gross carrying amount | 107,561 | 64,189 | 107,561 | 64,189 | 64,190 |
Accumulated amortization | (37,131) | (32,876) | (37,131) | (32,876) | (33,740) |
Net carrying amount | 70,430 | 31,313 | 70,430 | 31,313 | 30,450 |
Europe | |||||
Changes in gross carrying amount of finite-lived intangible assets | |||||
Gross carrying amount | 389,148 | 369,827 | 389,148 | 369,827 | 384,432 |
Accumulated amortization | (67,801) | (48,510) | (67,801) | (48,510) | (53,493) |
Net carrying amount | 321,347 | 321,317 | 321,347 | 321,317 | 330,939 |
Asia/Pacific | |||||
Changes in gross carrying amount of finite-lived intangible assets | |||||
Gross carrying amount | 4,296 | 4,025 | 4,296 | 4,025 | 4,240 |
Accumulated amortization | (556) | (205) | (556) | (205) | (290) |
Net carrying amount | $ 3,740 | $ 3,820 | $ 3,740 | $ 3,820 | $ 3,950 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2024 | Sep. 30, 2023 | Sep. 30, 2024 | Sep. 30, 2023 | Dec. 31, 2023 | |
Indefinite-lived Intangible Assets [Line Items] | |||||
Amortization of intangibles | $ 6,600 | $ 5,900 | $ 17,965 | $ 17,500 | |
Trade Names [Member] | |||||
Indefinite-lived Intangible Assets [Line Items] | |||||
Indefinite-lived intangible assets | $ 95,700 | $ 90,400 | $ 95,700 | $ 90,400 | $ 94,200 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Estimated Future Amortization (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2024 USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Remaining three months of 2024 | $ 7,513 |
2025 | 29,204 |
2026 | 28,552 |
2027 | 28,369 |
2028 | 28,619 |
Thereafter | 177,498 |
Total | $ 299,755 |
Estimated Useful Lives (in years) | 9 years 6 months |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets - Carrying Amount of Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2024 | Sep. 30, 2023 | Sep. 30, 2024 | Sep. 30, 2023 | |
Goodwill | ||||
Balance at the beginning of the period | $ 502,550 | |||
Foreign exchange | 5,526 | |||
Balance at the end of the period | $ 550,946 | $ 483,413 | 550,946 | $ 483,413 |
Intangible Assets | ||||
Balance at the beginning of the period | 365,339 | |||
Amortization | (6,600) | (5,900) | (17,965) | (17,500) |
Foreign exchange | 4,771 | |||
Balance at the end of the period | $ 395,517 | $ 356,450 | 395,517 | $ 356,450 |
Goodwill, acquired | $ 42,870 |
Leases - Narrative (Details)
Leases - Narrative (Details) | Sep. 30, 2024 |
Leases [Abstract] | |
Option to extend term | 5 years |
Leases - Balance Sheet Informat
Leases - Balance Sheet Information (Details) - USD ($) $ in Thousands | Sep. 30, 2024 | Dec. 31, 2023 | Sep. 30, 2023 |
Leases [Abstract] | |||
Operating lease right-of-use assets | $ 87,097 | $ 68,792 | $ 66,144 |
Operating - current | 18,094 | 14,954 | 13,617 |
Operating - noncurrent | 70,496 | 55,324 | 53,808 |
Total operating lease liabilities | $ 88,590 | $ 70,278 | $ 67,425 |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2024 | Sep. 30, 2023 | |
Leases [Abstract] | ||
Operating lease cost | $ 5,599 | $ 4,434 |
Leases - Cash Flow Information
Leases - Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2024 | Sep. 30, 2023 | |
Lease, Cost [Abstract] | ||
Operating cash flows for operating leases | $ 5,559 | $ 4,166 |
Operating right-of-use assets obtained in exchange for new lease liabilities | $ 5,862 | $ 6,437 |
Leases - Maturity (Details)
Leases - Maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2024 | Dec. 31, 2023 | Sep. 30, 2023 |
Operating Leases | |||
Remaining three months of 2024 | $ 5,741 | ||
2025 | 22,015 | ||
2026 | 18,613 | ||
2027 | 14,388 | ||
2028 | 12,501 | ||
2029 | 10,164 | ||
Thereafter | 21,061 | ||
Total lease payments | 104,483 | ||
Less: Present value discount | (15,893) | ||
Total operating lease liabilities | $ 88,590 | $ 70,278 | $ 67,425 |
Leases - Lease Terms and Discou
Leases - Lease Terms and Discount Rates (Details) | Sep. 30, 2024 | Sep. 30, 2023 |
Leases [Abstract] | ||
Operating Lease, Weighted Average Remaining Lease Term | 6 years 6 months | 5 years 10 months 24 days |
Operating Lease, Weighted Average Discount Rate, Percent | 5.10% | 4.80% |
Debt (Details)
Debt (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended |
Sep. 30, 2024 | Jun. 30, 2024 | Sep. 30, 2023 | |
Debt | |||
Line of Credit Facility, Maximum Amount Outstanding During Period | $ 468,800 | $ 485,700 | $ 566,300 |
Revolving Credit Facility | |||
Debt | |||
Proceeds from Lines of Credit | 381,900 | ||
Revolving Credit Facility | Fair Value, Inputs, Level 2 | |||
Debt | |||
Revolving loan | $ 75,038 | $ 150,038 |
Debt - Schedule of Maturity (De
Debt - Schedule of Maturity (Details) $ in Thousands | Sep. 30, 2024 USD ($) |
Debt Disclosure [Abstract] | |
Remaining three months of 2024 | $ 5,625 |
2025 | 22,500 |
2026 | 22,500 |
2027 | 343,125 |
Total loan outstanding | $ 393,750 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2024 | Sep. 30, 2023 | Sep. 30, 2024 | Sep. 30, 2023 | Dec. 31, 2023 | |
Segment Information | |||||
Net sales | $ 587,153 | $ 580,084 | $ 1,714,710 | $ 1,712,093 | |
Income (Loss) from Operations | 124,854 | 140,213 | 353,125 | 403,596 | |
Total Assets | 2,897,459 | 2,815,487 | 2,897,459 | 2,815,487 | $ 2,704,724 |
Cash and cash equivalent | 339,427 | 571,006 | 339,427 | 571,006 | 429,822 |
Intersegment elimination | |||||
Segment Information | |||||
Net sales | 7,889 | 10,413 | 29,821 | 30,035 | |
North America | Intersegment elimination | |||||
Segment Information | |||||
Net sales | 711 | 1,064 | 2,410 | 3,756 | |
North America | Operating Segments | |||||
Segment Information | |||||
Net sales | 461,356 | 456,820 | 1,331,126 | 1,328,615 | |
Income (Loss) from Operations | 123,253 | 135,633 | 354,212 | 393,456 | |
Total Assets | 2,013,641 | 1,675,344 | 2,013,641 | 1,675,344 | 1,745,341 |
Europe | Intersegment elimination | |||||
Segment Information | |||||
Net sales | 1,032 | 1,327 | 3,695 | 4,399 | |
Europe | Operating Segments | |||||
Segment Information | |||||
Net sales | 121,170 | 119,043 | 370,985 | 371,074 | |
Income (Loss) from Operations | 12,635 | 15,450 | 33,037 | 42,894 | |
Total Assets | 751,419 | 687,992 | 751,419 | 687,992 | 716,396 |
Asia/Pacific | Intersegment elimination | |||||
Segment Information | |||||
Net sales | 6,146 | 8,022 | 23,716 | 21,880 | |
Asia/Pacific | Operating Segments | |||||
Segment Information | |||||
Net sales | 4,627 | 4,221 | 12,599 | 12,404 | |
Income (Loss) from Operations | 260 | 477 | (617) | 718 | |
Total Assets | 48,618 | 36,416 | 48,618 | 36,416 | 38,719 |
Administrative and all other | Administrative and all other | |||||
Segment Information | |||||
Income (Loss) from Operations | (11,294) | (11,347) | (33,507) | (33,472) | |
Cash and cash equivalent | 208,300 | 465,300 | 208,300 | 465,300 | 368,600 |
Administrative and all other | Operating Segments | |||||
Segment Information | |||||
Total Assets | $ 83,781 | $ 415,735 | $ 83,781 | $ 415,735 | $ 204,268 |
Segment Information (Details 2)
Segment Information (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2024 | Sep. 30, 2023 | Sep. 30, 2024 | Sep. 30, 2023 | |
Net sales and long-lived assets by geographical area | ||||
Net sales | $ 587,153 | $ 580,084 | $ 1,714,710 | $ 1,712,093 |
Wood construction products | ||||
Net sales and long-lived assets by geographical area | ||||
Net sales | 494,379 | 491,308 | 1,450,972 | 1,461,442 |
Concrete construction products | ||||
Net sales and long-lived assets by geographical area | ||||
Net sales | 86,715 | 84,141 | 251,893 | 242,133 |
Other | ||||
Net sales and long-lived assets by geographical area | ||||
Net sales | $ 6,059 | $ 4,635 | $ 11,845 | $ 8,518 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2024 USD ($) segment | Dec. 31, 2023 USD ($) | Sep. 30, 2023 USD ($) | |
Concentration Risk [Line Items] | |||
Cash and cash equivalents | $ | $ 339,427 | $ 429,822 | $ 571,006 |
Number of reportable segments | segment | 3 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Oct. 23, 2024 | Nov. 05, 2024 | Sep. 30, 2024 | Sep. 30, 2023 | Sep. 30, 2024 | Sep. 30, 2023 | Oct. 19, 2023 | |
Subsequent Event [Line Items] | |||||||
Cash dividends declared per common share | $ 0.28 | $ 0.27 | $ 0.83 | $ 0.80 | |||
Authorized amount | $ 100,000,000 | ||||||
Value of shares repurchased | $ 23,000 | $ 50,280,000 | |||||
Subsequent Event | |||||||
Subsequent Event [Line Items] | |||||||
Cash dividends declared per common share | $ 0.28 | ||||||
Dividends | $ 11,700,000 | ||||||
Authorized amount | $ 100,000,000 | ||||||
Average cost per share repurchased (in dollars per share) | $ 181.22 | ||||||
Repurchased shares (in shares) | 275,906 | ||||||
Value of shares repurchased | $ 50,000,000 |