Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 30, 2023 | Feb. 24, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 30, 2023 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | PGTI | ||
Entity Registrant Name | PGT Innovations, Inc. | ||
Entity Central Index Key | 0001354327 | ||
Current Fiscal Year End Date | --12-30 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Document Financial Statement Error Correction | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 57,261,697 | ||
Entity Public Float | $ 1,627,882,993 | ||
Entity File Number | 001-37971 | ||
Entity Tax Identification Number | 20-0634715 | ||
Entity Address, Address Line One | 1070 Technology Drive | ||
Entity Address, City or Town | North Venice | ||
Entity Address, State or Province | FL | ||
Entity Address, Postal Zip Code | 34275 | ||
City Area Code | 941 | ||
Local Phone Number | 480-1600 | ||
Title of 12(b) Security | Common stock, par value $0.01 per share | ||
Security Exchange Name | NYSE | ||
Entity Interactive Data Current | Yes | ||
Entity Incorporation, State or Country Code | DE | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Documents Incorporated by Reference | Portions of the Company’s Proxy Statement for the Company’s 2024 Annual Meeting of Stockholders are incorporated by reference into Part III of this Form 10-K. The Company’s Proxy Statement will be filed with the Securities and Exchange Commission pursuant to Regulation 14A. | ||
Auditor Name | Ernst & Young LLP | ||
Auditor Firm ID | 42 | ||
Auditor Location | Tampa, Florida |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Income Statement [Abstract] | |||
Net sales | $ 1,504,241 | $ 1,491,954 | $ 1,161,464 |
Cost of sales | 913,600 | 921,285 | 757,965 |
Gross profit | 590,641 | 570,669 | 403,499 |
Selling, general and administrative expenses | 404,193 | 402,886 | 303,043 |
Impairment of trade name | 5,500 | 7,423 | |
Restructuring costs and charges, net | 1,722 | ||
Income from operations | 179,226 | 160,360 | 100,456 |
Interest expense, net | 31,077 | 28,879 | 30,029 |
Debt extinguishment costs | 410 | 25,472 | |
Income before income taxes | 148,149 | 131,071 | 44,955 |
Income tax expense | 38,010 | 32,666 | 9,759 |
Net income | 110,139 | 98,405 | 35,196 |
Less: Net income attributable to redeemable non-controlling interest ("RNCI") | (1,101) | (1,523) | (2,318) |
Net income attributable to the Company | 109,038 | 96,882 | 32,878 |
Calculation of net income per common share attributable to common shareholders: | |||
Net income attributable to the Company | 109,038 | 96,882 | 32,878 |
Change in redemption value of RNCI | (1,637) | 2,000 | (6,081) |
Net income attributable to common shareholders | $ 107,401 | $ 98,882 | $ 26,797 |
Net income per common share attributable to common shareholders: | |||
Basic | $ 1.84 | $ 1.65 | $ 0.45 |
Diluted | $ 1.83 | $ 1.64 | $ 0.45 |
Weighted average number of common shares outstanding: | |||
Basic | 58,363 | 59,926 | 59,518 |
Diluted | 58,700 | 60,319 | 60,058 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 110,139 | $ 98,405 | $ 35,196 |
Other comprehensive income (loss) before tax: | |||
Increase (decrease) in fair value of derivatives | (455) | (7,690) | 24,455 |
Reclassification to earnings | 412 | (1,438) | (18,638) |
Other comprehensive income (loss) before tax | (43) | (9,128) | 5,817 |
Income tax expense (benefit) related to other comprehensive income (loss) | (11) | (2,345) | 1,531 |
Other comprehensive income (loss), net of tax | (32) | (6,783) | 4,286 |
Comprehensive income | 110,107 | 91,622 | 39,482 |
Less: Comprehensive income attributable to RNCI | (1,101) | (1,523) | (2,318) |
Comprehensive income attributable to the Company | $ 109,006 | $ 90,099 | $ 37,164 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 32,708 | $ 66,548 |
Accounts receivable, net | 117,617 | 160,107 |
Inventories | 111,781 | 112,672 |
Contract assets, net | 37,733 | 47,919 |
Prepaid expenses | 11,586 | 11,763 |
Other current assets | 16,860 | 16,532 |
Total current assets | 328,285 | 415,541 |
Property, plant and equipment, net | 238,126 | 208,354 |
Operating lease right-of-use asset, net | 124,012 | 104,121 |
Intangible assets, net | 415,245 | 447,052 |
Goodwill | 462,630 | 460,415 |
Other assets, net | 9,581 | 4,766 |
Total assets | 1,577,879 | 1,640,249 |
Current liabilities: | ||
Accounts payable | 40,630 | 43,727 |
Accrued liabilities | 73,190 | 125,234 |
Current portion of operating lease liability | 20,368 | 16,393 |
Total current liabilities | 134,188 | 185,354 |
Long-term debt | 612,102 | 642,134 |
Operating lease liability, less current portion | 114,030 | 95,159 |
Deferred income taxes | 52,685 | 47,407 |
Other liabilities | 5,007 | 7,459 |
Total liabilities | 918,012 | 977,513 |
Redeemable non-controlling interest | 34,721 | |
Commitments and Contingencies | ||
Shareholders' equity: | ||
Preferred stock; par value $.01 per share; 10,000 shares authorized; none outstanding | ||
Common stock; par value $.01 per share; 200,000 shares authorized; 64,395 and 63,940 shares issued and 57,188 and 59,912 shares outstanding at December 30, 2023 and December 31, 2022, respectively | 644 | 639 |
Additional paid-in-capital | 450,881 | 442,116 |
Accumulated other comprehensive income | 191 | 223 |
Retained earnings | 311,095 | 204,891 |
Treasury stock at cost (6,061 shares and 2,760 shares at December 30, 2023 and December 31, 2022, respectively) | (102,944) | (19,854) |
Total shareholders' equity | 659,867 | 628,015 |
Total liabilities, redeemable non-controlling interest, and shareholders' equity | $ 1,577,879 | $ 1,640,249 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, Shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, Shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 64,395,000 | 63,940,000 |
Common stock, shares outstanding | 57,188,000 | 59,912,000 |
Treasury stock, shares | 6,061,000 | 2,760,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Cash flows from operating activities: | |||
Net income | $ 110,139 | $ 98,405 | $ 35,196 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 35,991 | 34,048 | 30,487 |
Amortization | 26,307 | 26,150 | 21,082 |
Impairment of trade name | 5,500 | 7,423 | |
Asset impairment charges | 2,131 | ||
Non-cash portion of restructuring costs and charges | 1,679 | ||
Provision for allowance for credit losses | 3,132 | 10,979 | 3,834 |
Stock-based compensation | 12,240 | 9,670 | 7,819 |
Amortization and write-offs of deferred financing costs | 1,320 | 1,242 | 978 |
Debt extinguishment costs | 410 | 25,472 | |
Deferred income taxes | 6,752 | (11,340) | 7,632 |
Loss (gain) on sales of assets | 406 | (240) | 261 |
Change in operating assets and liabilities (net of acquisition effects): | |||
Accounts receivable, net | 37,452 | (20,622) | (34,390) |
Inventories | 527 | (12,017) | (15,984) |
Contract assets, net, prepaid expenses, other current and other assets | 26,158 | 12,826 | (5,958) |
Accounts payable, accrued and other liabilities | (70,717) | 37,309 | (12,750) |
Net cash provided by operating activities | 196,886 | 196,374 | 63,679 |
Cash flows from investing activities: | |||
Purchases of property, plant and equipment | (69,509) | (45,377) | (33,424) |
Investment in and acquisition of business | (744) | (188,580) | (220,676) |
Proceeds from sales of assets | 1,167 | 37 | 187 |
Net cash used in investing activities | (69,086) | (233,920) | (253,913) |
Cash flows from financing activities: | |||
Payment of fair value of contingent consideration in Anlin Acquisition | (4,348) | (2,362) | |
Redemption of redeemable non-controlling interest | (37,459) | ||
Proceeds from amounts drawn under revolving credit facility | 50,000 | 160,000 | |
Payments of borrowing under revolving credit facility | (81,352) | (83,648) | |
Proceeds from issuance of senior notes | 638,300 | ||
Payments of senior notes | (425,000) | ||
Payment of call-premium on redemption of senior notes | (21,518) | ||
Proceeds from issuance of term loan debt | 60,000 | ||
Payments of term loan debt | (60,000) | (54,000) | |
Payments of financing costs | (1,526) | (10,675) | |
Purchases of treasury stock under repurchase program | (82,349) | (1,565) | |
Income taxes paid from stock withheld relating to vested equity awards | (7,240) | (1,888) | (1,648) |
Proceeds from exercise of stock options | 138 | ||
Distribution to redeemable non-controlling interest | (1,665) | ||
Proceeds from issuance of common stock under ESPP | 1,108 | 602 | 463 |
Net cash (used in) provided by financing activities | (161,640) | 7,948 | 186,060 |
Net decrease in cash and cash equivalents | (33,840) | (29,598) | (4,174) |
Cash and cash equivalents at beginning of year | 66,548 | 96,146 | 100,320 |
Cash and cash equivalents at end of year | $ 32,708 | $ 66,548 | $ 96,146 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings [Member] | Treasury Stock [Member] |
Beginning Balance at Jan. 02, 2021 | $ 485,134 | $ 625 | $ 420,202 | $ 2,720 | $ 79,896 | $ (18,309) |
Begining Balance, Shares at Jan. 02, 2021 | 58,998,711 | |||||
Grants of restricted stock | $ 7 | (7) | ||||
Vesting of restricted stock, Shares | 312,982 | |||||
Forfeitures of restricted stock | $ (1) | 1 | ||||
Issuance of treasury stock | (20) | 20 | ||||
Issuance of treasury stock, Shares | 4,600 | |||||
Stock withheld in lieu of taxes | (1,648) | (1,648) | ||||
Stock withheld in lieu of taxes, Shares | (73,105) | |||||
Retirement of treasury stock | $ (1) | (1,372) | (275) | 1,648 | ||
Stock-based compensation | 7,819 | 7,819 | ||||
Exercise of stock options | 138 | $ 1 | 137 | |||
Exercise of stock options, Shares | 67,797 | |||||
Common stock issued under ESPP | 463 | 463 | ||||
Common stock issued under ESPP, Shares | 27,335 | |||||
Issuance in acquisition of Eco | 6,108 | $ 4 | 6,104 | |||
Issuance in acquisition of Eco, Shares | 357,797 | |||||
Other comprehensive loss, net of tax expense (benefit) | 4,286 | 4,286 | ||||
Net income attributable to the Company | 32,878 | 32,878 | ||||
Change in redemption value of RNCI | (6,081) | (6,081) | ||||
Ending Balance at Jan. 01, 2022 | 529,097 | $ 635 | 433,347 | 7,006 | 106,398 | (18,289) |
Ending Balance, Shares at Jan. 01, 2022 | 59,696,117 | |||||
Grants of restricted stock | $ 6 | (6) | ||||
Vesting of restricted stock, Shares | 359,360 | |||||
Forfeitures of restricted stock | $ (1) | 1 | ||||
Stock withheld in lieu of taxes | (1,888) | (1,888) | ||||
Stock withheld in lieu of taxes, Shares | (95,001) | |||||
Retirement of treasury stock | $ (1) | (1,498) | (389) | 1,888 | ||
Purchases of treasury stock | (1,565) | (1,565) | ||||
Purchases of treasury stock, Shares | (86,124) | |||||
Stock-based compensation | 9,670 | 9,670 | ||||
Common stock issued under ESPP | 602 | 602 | ||||
Common stock issued under ESPP, Shares | 37,204 | |||||
Other comprehensive loss, net of tax expense (benefit) | (6,783) | (6,783) | ||||
Net income attributable to the Company | 96,882 | 96,882 | ||||
Change in redemption value of RNCI | 2,000 | 2,000 | ||||
Ending Balance at Dec. 31, 2022 | 628,015 | $ 639 | 442,116 | 223 | 204,891 | (19,854) |
Ending Balance, Shares at Dec. 31, 2022 | 59,911,556 | |||||
Grants of restricted stock | $ 10 | (10) | ||||
Vesting of restricted stock, Shares | 767,734 | |||||
Forfeitures of restricted stock | $ (4) | 4 | ||||
Stock withheld in lieu of taxes | (7,240) | (7,240) | ||||
Stock withheld in lieu of taxes, Shares | (241,290) | |||||
Retirement of treasury stock | $ (2) | (4,577) | (2,661) | 7,240 | ||
Purchases of treasury stock | (83,090) | (83,090) | ||||
Purchases of treasury stock, Shares | (3,300,233) | |||||
Stock-based compensation | 12,240 | 12,240 | ||||
Deferred taxes from RNCI redemption | 1,464 | 1,464 | ||||
Common stock issued under ESPP | 1,109 | $ 1 | 1,108 | |||
Common stock issued under ESPP, Shares | 50,059 | |||||
Other comprehensive loss, net of tax expense (benefit) | (32) | (32) | ||||
Net income attributable to the Company | 109,038 | 109,038 | ||||
Change in redemption value of RNCI | (1,637) | (1,637) | ||||
Ending Balance at Dec. 30, 2023 | $ 659,867 | $ 644 | $ 450,881 | $ 191 | $ 311,095 | $ (102,944) |
Ending Balance, Shares at Dec. 30, 2023 | 57,187,826 |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Statement of Stockholders' Equity [Abstract] | |||
Income tax expense (benefit) related to other comprehensive income (loss) | $ (11) | $ (2,345) | $ 1,531 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Pay vs Performance Disclosure | |||
Net Income (Loss) | $ 109,038 | $ 96,882 | $ 32,878 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Description of Business
Description of Business | 12 Months Ended |
Dec. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | 1. Description of Business PGT Innovations, Inc. (“PGTI”, “we,” or the “Company”), formerly named PGT, Inc., is a leading manufacturer of impact-resistant aluminum and vinyl-framed windows and doors and offers a broad range of fully customizable window and door products. The majority of our sales are to customers in the state of Florida; however, we also sell products in many other states, the Caribbean, Canada, and in South and Central America. We also have sales of products that are designed to unify indoor and outdoor living spaces, through our Western Windows Systems’ (“WWS”) division, and most of its sales are in the western United States. Our acquisitions of Anlin Windows and Doors in October 2021 and Martin Door Holdings, Inc. ("Martin") in October 2022 expanded our presence in the west, along with our product portfolio with Martin offering residential and commercial garage doors. Products are sold primarily through an authorized dealer and distributor network. We were incorporated in the state of Delaware on December 16, 2003, as JLL Window Holdings, Inc., with primary operations in North Venice, Florida. On February 15, 2006, our Company was renamed PGT, Inc. On December 14, 2016, we announced that we changed our name to PGT Innovations, Inc. and, effective on December 28, 2016, the listing of our common stock was transferred to the New York Stock Exchange (“NYSE”) from the NASDAQ Global Market, and began trading on the NYSE under its existing ticker symbol of “PGTI”. As of December 30, 2023, we had major manufacturing operations in Florida, in North Venice, Ft. Myers, Tampa, and in the greater Miami area. We also have manufacturing operations in Arizona, California and Utah. Additionally, we have two glass tempering and laminating plants and one insulation glass plant located in North Venice, and we began construction on our Diamond Glass Thin Triple glass fabrication facility in Virginia. All references to PGTI or our Company apply to the consolidated financial statements of PGT Innovations, Inc. unless otherwise noted. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 30, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). Fiscal period Our fiscal year consists of 52 or 53 weeks ending on the Saturday nearest December 31 of the related year. The years ended December 30, 2023, December 31, 2022, and January 1, 2022, consisted of 52 weeks. Principles of consolidation The consolidated financial statements present the results of the operations, financial position and cash flows of PGTI, and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. We consolidate all wholly owned subsidiaries. Segment information We operate as two segments based on geography: the Southeast segment and the Western segment. See Note 19 for more information. Use of estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could materially differ from those estimates. Revenue recognition Revenue is recognized when our performance obligations are satisfied. Generally, our performance obligations are satisfied over time when control of our products is transferred, and revenue is recognized at a single point in time, when control transfers to our customer for product shipped or when services are provided. Revenues are recorded net of any sales incentives. See Note 4, “Revenue Recognition and Contracts with Customers.” Cost of sales Cost of sales represents costs directly related to the production of our products. Primary costs include raw materials, direct labor, and manufacturing overhead, which consist of salaries, wages, employee benefits, utilities, maintenance, lease costs and depreciation. Shipping and handling costs Shipping and handling costs incurred in the purchase of materials used in the manufacturing process are included in cost of sales. Costs relating to shipping, handling and distribution of finished products to our customers are included in selling, general and administrative expenses and totaled $ 69.7 million, $ 75.1 million and $ 62.4 million for the years ended December 30, 2023, December 31, 2022, and January 1, 2022, respectively. Advertising We expense advertising costs as incurred. Advertising expense, which is included in selling, general and administrative expenses, was $ 29.3 million, $ 22.7 million and $ 15.8 million for the years ended December 30, 2023, December 31, 2022, and January 1, 2022, respectively. Research and development costs We expense research and development costs as incurred. Research and development costs in the years ended December 30, 2023, December 31, 2022, and January 1, 2022, were not material. Cash and cash equivalents Cash and cash equivalents consist of cash on hand or highly liquid investments with an original maturity date of three months or less when purchased. Accounts receivable, net In the ordinary course of business, we extend credit to qualified dealers and distributors, generally on a non-collateralized basis. The Company maintains an allowance for credit losses which is based on management’s assessments of the amount which may become uncollectible in the future and is determined through consideration of our write-off history, specific identification of uncollectible accounts based in part on the customer’s past due balance (based on contractual terms), and consideration of prevailing economic and industry conditions. Uncollectible accounts are written off after repeated attempts to collect from the customer have been unsuccessful. December 30, December 31, 2023 2022 (in thousands) Accounts receivable $ 131,795 $ 173,763 Less: Allowance for credit losses ( 14,178 ) ( 13,656 ) Accounts receivable, net $ 117,617 $ 160,107 Self-insurance reserves We are primarily self-insured for employee health benefits and workers’ compensation claims prior to 2010 and after 2017. Provisions for losses under these programs are recorded based on the Company’s estimates of the aggregate liabilities for the claims incurred. Accruals for healthcare claims and workers’ compensation are included in accrued liabilities in the accompanying consolidated balance sheets. Warranty expense We have warranty obligations with respect to most of our manufactured products. Warranty periods, which vary by product components, generally range from 1 to 10 years , although the warranty period for a limited number of specifically identified components in certain applications is a lifetime. However, the majority of the products sold have warranties on components which range from 1 to 3 years . The Company has recorded a reserve for estimated warranty and related costs based on historical experience and periodically adjusts these provisions to reflect actual experience. During 2023, we recorded warranty expense at an average rate of 2.4 % of sales, compared to 2.1 % of sales recorded in 2022 and 2.0 % of sales recorded in 2021. The increase in our warranty expense rate in 2023, compared to 2022 was a result of servicing a higher number of overall warranty claims in 2023, resulting in a higher level of service warranty expense, whereas the rate in 2022 was lower on average as there was a decrease in the use of higher-cost contract labor. We assess the adequacy of our warranty accrual on a quarterly basis, and adjust the previous amounts recorded, if necessary, to reflect the change in estimate of the future costs of claims yet to be serviced. The following provides information with respect to our warranty accrual. Accrued Warranty Beginning of Acquired (Acquisition Charged to Adjustments Settlements End of (in thousands) Year ended December 30, 2023 $ 15,388 $ - $ 36,261 $ ( 285 ) $ ( 36,128 ) $ 15,236 Year ended December 31, 2022 $ 13,504 $ ( 2,537 ) $ 31,223 $ 698 $ ( 27,500 ) $ 15,388 Year ended January 1, 2022 $ 8,001 $ 4,150 $ 23,637 $ ( 1,440 ) $ ( 20,844 ) $ 13,504 During the third quarter of 2022, we finalized our calculation of the reserve for warranty obligations assumed in the Anlin Acquisition. As a result, we recorded an acquisition adjustment to decrease Anlin's warranty reserve by $ 2.5 million from its initial estimate in our then preliminary allocation of the fair value of assets acquired and liabilities assumed, resulting in an equal decrease in goodwill. In 2021, we assumed warranty reserves totaling $ 4.2 million in our acquisitions of Anlin and ECO. The accrual for warranty is included in accrued liabilities and other liabilities, depending on estimated settlement date, in the consolidated balance sheets as of December 30, 2023 and December 31, 2022. The portion of warranty expense related to the issuance of product of $ 3.2 million, $ 3.9 million and $ 3.0 million is included in cost of sales in the consolidated statements of operations for the years ended December 30, 2023, December 31, 2022, and January 1, 2022, respectively. The portion related to servicing warranty claims including costs of the service department personnel is included in selling, general and administrative expenses in the consolidated statements of operations, and is $ 32.8 million, $ 28.1 million and $ 19.2 million, respectively, for the years ended December 30, 2023, December 31, 2022, and January 1, 2022. Inventories Inventories consist principally of raw materials purchased for the manufacture of our products. We have limited work-in-progress and finished goods inventory as most products are custom, made-to-order products manufactured under noncancelable purchase orders and therefore are recognized as costs of sales relating to revenue recognized over time during the manufacturing process. All inventories are stated at the lower of cost (first-in, first-out method) or net realizable value. The reserve for obsolescence, which was immaterial at December 30, 2023 and December 31, 2022, is based on management’s assessment of the amount of inventory that may become obsolete in the future and is determined through Company history, specific identification and consideration of prevailing economic and industry conditions. Inventories consist of the following: December 30, December 31, 2023 2022 (in thousands) Raw materials $ 108,796 $ 109,679 Work in progress 1,771 916 Finished goods 1,214 2,077 Inventories $ 111,781 $ 112,672 Property, plant and equipment Property, plant and equipment are recorded at cost and depreciated using the straight-line method over the estimated useful lives of the related assets. Depreciable assets are assigned estimated lives as follows: Building and improvements 5 to 40 years Leasehold improvements Shorter of lease term or estimated useful life Furniture and equipment 3 to 10 years Vehicles 5 to 10 years Computer software 3 years Maintenance and repair expenditures are charged to expense as incurred. Leases We determine if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use assets, current portion of operating lease liability, and operating lease liability, less current portion, on our consolidated balance sheets. The Company currently does not have any finance leases. Operating lease right-of-use assets and operating lease liabilities are recognized based on the present value of lease payments over the lease term at commencement date. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. The operating lease right-of-use asset also includes any up-front lease payments made and initial direct costs incurred, less lease incentives received. Our lease terms may include options to extend or terminate the lease. Lease expense is recognized on a straight-line basis over the lease term. We elected the practical expedient to not separate lease and non-lease components for all classes of underlying assets. Long-lived assets We review long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of long-lived assets to future undiscounted net cash flows expected to be generated . If such assets are considered to be impaired, the impairment recognized is the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less cost to sell, and depreciation is no longer recorded. Computer software We capitalize costs associated with software developed or obtained for internal use when both the preliminary project stage is complete, and it is probable that computer software being developed will be completed and placed in service. Capitalized costs include: (i) external direct costs of materials and services consumed in developing or obtaining computer software, (ii) payroll and other related costs for employees who are directly associated with and who devote time to the software project, and (iii) interest costs incurred, when material, while developing internal-use software. Capitalization of such costs ceases no later than the point at which the project is substantially complete and ready for its intended purpose. Capitalized software as of December 30, 2023, and December 31, 2022, was $ 32.3 million and $ 31.7 million, respectively. Accumulated depreciation of capitalized software was $ 32.0 million and $ 30.3 million as of December 30, 2023, and December 31, 2022, respectively. Amortization expense for capitalized software was $ 1.7 million, $ 3.0 million, and $ 3.7 million for the years ended December 30, 2023, December 31, 2022, and January 1, 2022, respectively. We review the carrying value of capitalized software and development costs for impairment in accordance with our policy pertaining to the impairment of long-lived assets. Goodwill Goodwill is calculated as the excess of the consideration paid in a business combination over the fair value of the identifiable net assets acquired. We test goodwill for impairment at the reporting unit level at least annually or whenever events or circumstances indicate that the carrying value of goodwill may not be recoverable. Our annual test for impairment is done on the first date of our fiscal fourth quarter. We consider various qualitative factors, including macroeconomic and industry conditions, financial performance of the Company and changes in the stock price of the Company to determine whether it is necessary to perform a quantitative test for goodwill impairment. If we believe, as a result of our qualitative assessment, that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the quantitative impairment test is required. Under the quantitative test, goodwill is tested under a one-step method for impairment at a level of reporting referred to as a reporting unit. This quantitative analysis involves identifying potential impairment by comparing the fair value of each reporting unit with its carrying amount and, if the carrying amount of a reporting unit exceeds its fair value, then a charge for goodwill impairment will be recognized in the amount by which a reporting unit’s carrying value exceeds its fair value. For our Southeast and Western reporting units, based on qualitative assessments, we concluded that quantitative assessments were not required to be performed. See Note 7 for further discussion of the goodwill of our reporting units. Trade names The Company has indefinite-lived intangible assets in the form of certain trade names. The impairment evaluation of the carrying amount of our indefinite-lived trade names is conducted annually, or more frequently, if events or changes in circumstances indicate that they might be impaired. We have the option of performing a qualitative assessment of impairment to determine whether any further quantitative testing for impairment is necessary. If we elect to bypass the qualitative assessment or if we determine, based on qualitative factors, that it is more likely than not that the fair value of our indefinite-lived trade names is less than the carrying amount, an evaluation is performed by comparing their carrying amount to their estimated fair values. If the estimated fair value is less than the carrying amount of the indefinite-lived trade name, then an impairment charge is recorded to reduce the carrying value to its estimated fair value. The estimated fair value is determined using the relief from royalty method that is based upon the discounted projected cost savings (value) attributable to ownership of our trade names, our only indefinite-lived intangible assets. Other than the Martin trade name, based on qualitative assessments for 2023, the Company concluded it was more likely than not the fair value of the indefinite-lived intangible assets exceeded their carrying values. For the Martin trade name, we concluded that a quantitative assessment was required, given the post-acquisition sales levels were below those used in its initial valuation, which resulted in an impairment charge of $ 5.5 million in the year ended December 30, 2023. We review the carrying value of our finite-lived trade name in accordance with our policy for long-lived assets. See Note 7 for further discussion of our trade names. Derivative financial instruments We utilize certain derivative instruments, from time to time, including forward contracts to manage variability in cash flow associated with commodity market price risk exposure in the aluminum market. We do not enter into derivatives for speculative purposes. Concentrations of credit risk Financial instruments, which potentially subject us to concentrations of credit risk, consist principally of cash and cash equivalents, trade accounts receivable and contract assets. Accounts receivable and contract assets are due primarily from dealers and distributors of building materials, and other companies in the construction industry, primarily located in Florida, California, Texas, Arizona and Utah. Credit is extended based on an evaluation of the customer’s financial condition and credit history, and generally collateral is not required. The Company maintains an allowance for potential credit losses on trade receivables and contract assets. We maintain our cash with several financial institutions, the balance of which exceeds federally insured limits. At December 30, 2023 and December 31, 2022, our cash balance exceeded the insured limit by $ 29.8 million and $ 61.4 million, respectively. Comprehensive income (loss) The Company reports comprehensive income (loss), defined as the total of net income and other comprehensive income (loss), which is composed of all other non-owner changes in equity, and the components thereof, in its consolidated statements of comprehensive income. The components of other comprehensive income (loss) relate to gains and losses on cash flow hedges. Reclassification adjustments reflecting such gains and losses are recorded as income in the same period as the hedged items affect earnings. Stock-based compensation We use a fair-value based approach for measuring stock-based compensation and record compensation expense over an award’s vesting period based on the award’s fair value at the date of grant. Our Company’s awards vest based on service conditions and certain performance conditions and compensation expense is recognized generally on a straight-line basis for each separately vesting portion of an award. Stock-based compensation expense is recognized only for those awards that ultimately vest. Income and Sales Taxes We account for income taxes utilizing the liability method. Deferred income taxes are recorded to reflect consequences on future years of differences between financial reporting and the tax basis of assets and liabilities measured using the enacted statutory tax rates and tax laws applicable to the periods in which differences are expected to affect taxable earnings. We have no liability for unrecognized tax benefits. However, should we accrue for such liabilities, when and if they arise in the future, we will recognize interest and penalties associated with uncertain tax positions as part of our income tax provision. Income taxes relating to gains and losses on our cash flow hedges are released at the same time as the underlying transactions are realized. Interest and penalties on income taxes, if any, are recorded as income taxes. Refer to Note 12 for additional information regarding the Company’s income taxes. Sales taxes collected from customers have been recorded on a net basis. Net income per common share Basic earnings per share (“EPS”) attributable to PGT Innovations, Inc. common stockholders for the years ended December 30, 2023, December 31, 2022 and January 1, 2022 is computed using the two-class method by dividing net income attributable to common shareholders, after deducting the redemption adjustment related to the redeemable noncontrolling interest, by the average number of common shares outstanding during the period. Diluted EPS attributable to PGT Innovations, Inc. common stockholders for the years ended December 30, 2023, December 31, 2022 and January 1, 2022, is computed using the two-class method by dividing net income attributable to common shareholders, after deducting the redemption adjustment related to the redeemable noncontrolling interest, by the average number of common shares outstanding, including the dilutive effect of common stock equivalents computed using the treasury stock method and the average share price during the period Anti-dilutive securities were insignificant for the years ended December 30, 2023 and December 31, 2022. The table below presents the calculation of basic and diluted earnings per share, including a reconciliation of weighted average common shares: Year Ended December 30, December 31, January 1, 2023 2022 2022 (in thousands, except per share amounts) Net income $ 110,139 $ 98,405 $ 35,196 Less: Net income attributable to RNCI ( 1,101 ) ( 1,523 ) ( 2,318 ) Net income attributable to the Company 109,038 96,882 32,878 Change in redemption value of RNCI ( 1,637 ) 2,000 ( 6,081 ) Net income attributable to common shareholders $ 107,401 $ 98,882 $ 26,797 Weighted-average common shares - Basic 58,363 59,926 59,518 Add: Dilutive shares from equity plans 337 393 540 Weighted-average common shares - Diluted 58,700 60,319 60,058 Weighted average number of common shares outstanding: Basic $ 1.84 $ 1.65 $ 0.45 Diluted $ 1.83 $ 1.64 $ 0.45 Supplemental cash flow information and non-cash activity The table below presents supplemental cash flow information and non-cash activity for the years ended December 30, 2023, December 31, 2022, and January 1, 2022: Year Ended December 30, December 31, January 1, (in thousands) 2023 2022 2022 Supplemental cash flow information: Interest paid (net of interest income) $ 30,246 $ 27,948 $ 32,636 Income tax payments, net of refunds $ 40,617 $ 21,499 $ 12,166 Non-cash activity: Establish right-of-use asset $ 44,424 $ 29,031 $ 65,678 Establish operating lease liability $ ( 44,424 ) $ ( 29,031 ) $ ( 65,678 ) Property, plant and equipment additions in accounts payable $ 387 $ 565 $ 772 |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 30, 2023 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | 3. Recent Accounting Pronouncements Accounting Pronouncements Recently Adopted Disclosure of Supplier Finance Program Obligations In September 2022, the FASB issued ASU 2022-04, “Supplier Finance Programs: Disclosure of Supplier Finance Program Obligations,” to improve the disclosures of supplier finance programs. Specifically, the ASU requires disclosure of key terms of the supplier finance programs and a rollforward of the related obligations. The amendments in this ASU do not affect the recognition, measurement, or financial statement presentation of obligations covered by supplier finance programs. The ASU was effective for us for fiscal years, and interim periods within those years, beginning after December 15, 2022, except for the amendment on rollforward information, which was effective for fiscal years beginning after December 15, 2023. Early adoption was permitted. The Company does not engage in supplier finance programs and, therefore, did not add any incremental disclosures required by ASU 2022-04. Accounting Pronouncements Recently Issued, Not Yet Adopted Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures In November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update (ASU) No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires a public entity to disclose significant segment expenses and other segment items on an annual and interim basis and provide in interim periods all disclosures about a reportable segment’s profit or loss and assets that are currently required annually. Additionally, it requires a public entity to disclose the title and position of the Chief Operating Decision Maker (CODM). The ASU does not change how a public entity identifies its operating segments, aggregates them, or applies the quantitative thresholds to determine its reportable segments. The new standard is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. A public entity should apply the amendments in this ASU retrospectively to all prior periods presented in the financial statements. We expect this ASU to only impact our disclosures with no impacts to our results of operations, cash flows and financial condition. Income Taxes (Topic 740) - Improvements to Income Tax Disclosures In December 2023, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2023-09, “Income Taxes - Improvements to Income Tax Disclosures” requiring enhancements and further transparency to certain income tax disclosures, most notably the tax rate reconciliation and income taxes paid. This ASU is effective for fiscal years beginning after December 15, 2024 on a prospective basis and retrospective application is permitted. We are currently evaluating the impact of the adoption of this standard. |
Revenue Recognition and Contrac
Revenue Recognition and Contracts with Customers | 12 Months Ended |
Dec. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition and Contracts with Customers | 4. Revenue Revenue Recognition Accounting Policy The Company primarily manufactures fully customized windows and doors based on design specifications, measurements, colors, finishes, framing materials, glass-types, and other options selected by the customer at the point in time an order is received. The Company has an enforceable right to payment at the time an order is received and accepted at the agreed-upon sales prices contained in our agreements with our customers for all manufacturing efforts expended on behalf of its customers. Due to the customized build-to-order nature of these products, the Company’s assessment is that the substantial portion of its finished goods and certain unused glass components have no alternative use, and that control of these products and components passes to the customer over time during the manufacturing of the products in an order, or upon our receipt of certain pre-cut glass components from our supplier attributed to specific customer orders. We give our customers 30-day payment terms, which is typical in our industry. Based on these factors, the Company recognizes a substantial portion of revenue over time during the manufacturing process once customization begins, generally based on the cost of material and labor inputs to the manufacturing process, and for certain unused glass components on hand, at the end of a reporting period. Revenue on work-in-process at the end of a reporting period is recognized in proportion to costs incurred to total estimated cost of the product being manufactured. Except for the Western segment’s volume products, discussed in the section titled Disaggregation of Revenue from Contracts with Customers below, revenue recognized at a point in time is immaterial. Disaggregation of Revenue from Contracts with Customers As discussed in Note 1, we have two reportable segments: our Southeast segment and our Western segment. See Note 19 for more information. The following table provides information about our net sales by reporting segment and product category for the years ended December 30, 2023, December 31, 2022, and January 1, 2022 (in millions): Year Ended December 30, December 31, January 1, Disaggregation of revenue: 2023 2022 2022 Reporting segment: Southeast $ 1,130.4 $ 1,110.4 $ 968.7 Western 373.8 381.6 192.8 Total net sales $ 1,504.2 $ 1,492.0 $ 1,161.5 Product category: Impact-resistant window and door products $ 926.3 $ 878.8 $ 787.2 Non-impact window and door products 577.9 613.2 374.3 Total net sales $ 1,504.2 $ 1,492.0 $ 1,161.5 The Company’s Western segment includes both custom and volume products. This segment’s volume products are not made-to-order and are of standardized sizes and design specifications. Therefore, the Company’s assessment is that the Western segment’s volume products have alternative uses, and that control of these products passes to the customer at a point in time, which is typically when the product has been delivered to the customer. For the years ended December 30, 2023, December 31, 2022, and January 1, 2022, the Western segment’s net sales of its volume products were $ 79.4 million, $ 111.5 million and $ 83.0 million, respectively. Contract Balances Contract assets represent sales recognized in excess of billings related to finished goods not yet shipped and certain unused glass components not yet placed into the production process for which revenue is recognized over time as noted above. Contract liabilities relate to customer deposits at the end of reporting periods. At December 30, 2023 and December 31, 2022, those contract liabilities totaled $ 21.9 million and $ 39.1 million, respectively, of which $ 17.1 million and $ 33.4 million, respectively, are classified within accrued liabilities, and $ 4.8 million and $ 5.7 million, respectively, are classified within contract assets, net, in the accompanying consolidated balance sheets at December 30, 2023 and December 31, 2022. Because of the short-term nature of our performance obligations, as discussed below, substantially all of our performance obligations are satisfied within the quarter following the end of a reporting period. As such, substantially all of the contract liabilities at December 31, 2022 were satisfied in the first quarter of 2023, and contract assets at December 31, 2022 were transferred to accounts receivable in the first quarter of 2023. Also, substantially all of the contract liabilities at December 30, 2023 will be satisfied in the first quarter of 2024, and contract assets at December 30, 2023 will be transferred to accounts receivable in the first quarter of 2024. Contract liabilities at December 30, 2023 represents cash received during the three-month period ended December 30, 2023, excluding amounts recognized as revenue during that period. Contract assets at December 30, 2023 represents revenue recognized during the three-month period ended December 30, 2023, excluding amounts transferred to accounts receivable during that period. Contract liabilities at December 31, 2022 represents cash received during the three-month period ended December 31, 2022, excluding amounts recognized as revenue during that period. Contract assets at December 31, 2022 represents revenue recognized during the three-month period ended December 31, 2022, excluding amounts transferred to accounts receivable during that period. Performance Obligations A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is defined as the unit of account. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue as the performance obligation is satisfied. Our contracts with our customers generally represent an approved purchase order, together with our standard terms and conditions. Our custom product contracts include distinct goods that are substantially the same and have the same pattern of transfer to the customer over time, and therefore represent a series of distinct goods accounted for as a single performance obligation. For volume products, we allocate the contract’s transaction price to each distinct performance obligation based on the estimated relative standalone selling price of each distinct good. Observable standalone sales are used to determine the standalone selling price. Certain customers are eligible for rebates based on their volume or purchases during an annual period. Rebates are recorded as a reduction to sales and were immaterial in all periods presented. Performance obligations are satisfied over time, generally for our custom products, and as of a point in time for our volume products. Performance obligations are supported by contracts with customers, and we have elected not to disclose our unsatisfied performance obligations as of December 30, 2023 under the short-term contract exemption as we expect such performance obligations will be satisfied within the quarter following the end of a reporting period. Policies Regarding Shipping and Handling Costs and Commissions on Contract Assets The Company has made a policy election to continue to recognize shipping and handling costs as a fulfillment activity. Treating shipping and handling as a fulfillment activity requires estimated shipping and handling costs for undelivered custom products and certain glass components on which we have recognized revenue and created a contract asset, to be accrued to match this cost with the recognized revenue. The Company utilizes the practical expedient which permits expensing of costs to obtain a contract when the expected amortization period is one year or less, which typically results in expensing commissions paid to employees. We expense sales commissions paid to employees as sales are recognized, including sales from the creation of contract assets, as the expected amortization period is less than one year. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 30, 2023 | |
Business Combinations [Abstract] | |
Acquisitions | 5. Acquisitions Martin Doors On October 14, 2022 , we completed the acquisition of the Martin Doors brand. The acquisition was done by WWS Acquisition, LLC, a Missouri limited liability company, indirectly wholly-owned by PGT Innovations, Inc., which acquired all of the shares of stock of Martin Door Holdings, Inc., a Utah corporation, headquartered in Salt Lake City, Utah, a custom manufacturer of overhead garage doors and hardware serving the Western U.S. (the "Martin Acquisition"), pursuant to that certain Share Purchase Agreement dated as of October 14, 2022 (the “Martin Purchase Agreement”). The fair value of consideration transferred in the Martin Acquisition was $ 188.5 million, composed entirely of cash, including $ 185.0 million for purchase price and $ 3.5 million in working capital adjustments, of which $ 2.8 million was estimated and paid at closing, and $ 0.7 million was paid in the first quarter of 2023 upon finalization of the net working capital calculation. The cash portion of the Martin Acquisition was financed with borrowings under the fifth amendment of our 2016 Credit Agreement due 2027 of $ 98.4 million, and the remaining $ 90.1 million funded with cash on hand. Generally, cash on hand for the Martin Acquisition was provided by cash generated through operations. Purchase Price Allocation The fair value of assets acquired, and liabilities assumed as of the closing date, are as follows: Initial Adjustments to Final Accounts receivable $ 6,653 $ ( 194 ) $ 6,459 Inventories 9,543 ( 364 ) 9,179 Contract assets, net 5,242 — 5,242 Prepaid expenses and other assets 90 — 90 Property and equipment 11,422 ( 1,196 ) 10,226 Operating lease right-of-use asset 12,259 — 12,259 Intangible assets 91,900 — 91,900 Total assets acquired 137,109 ( 1,754 ) 135,355 Accounts payable ( 2,482 ) — ( 2,482 ) Accrued and other liabilities ( 1,270 ) 283 ( 987 ) Deferred tax liabilities ( 23,604 ) — ( 23,604 ) Operating lease liability ( 12,259 ) — ( 12,259 ) Total liabilities assumed ( 39,615 ) 283 ( 39,332 ) Net assets acquired 97,494 ( 1,471 ) 96,023 Goodwill 90,300 2,215 92,515 Fair value of consideration transferred $ 187,794 $ 744 $ 188,538 Consideration: Cash $ 187,794 $ 744 $ 188,538 Fair value of consideration transferred $ 187,794 $ 744 $ 188,538 The fair value of certain working capital related items, including Martin’s accounts receivable, prepaid expenses and other assets, and accounts payable and accrued and other liabilities, approximated their book values at the date of the Martin Acquisition. The fair value of inventory was estimated by major category, at net realizable value, which we believe approximates the price a market participant could achieve in a current sale. The substantial majority of inventories at the acquisition date was comprised of raw materials. The fair value of property and equipment and remaining useful lives were estimated by management, with the assistance of a third-party valuation firm, using the cost approach. Valuations of the intangible assets were done using income and royalty relief approaches based on projections provided by management, which we consider to be Level 3 inputs, with the assistance of a third-party valuation firm. We made immaterial adjustments to our purchase allocation relating to accounts receivable, inventories, property and equipment, and accrued and other liabilities. We incurred acquisition costs totaling $ 4.8 million relating to legal expenses, representations and warranties insurance, diligence, accounting and other services in the Martin Acquisition, classified as selling, general and administrative expenses in the accompanying consolidated statements of operations for the year ended December 31, 2022. Because the Martin Acquisition was an acquisition of stock, Martin's assets and liabilities retain their tax bases at the time of the acquisition. Therefore, none of the identifiable intangible assets or goodwill acquired in the Martin Acquisition are deductible for tax purposes. As of December 30, 2023, goodwill is $ 92.5 million. Martin's goodwill is included as part of the Western reporting unit. We believe Martin's goodwill relates to the expansion of our footprint in a key, strategic market we have identified as a geographic area of growth for our Company, as well as being a key component of our strategy to expand into adjacent building material products, other than windows and doors. Valuation of Identified Intangible Assets The valuation of the identifiable intangible assets acquired in the Martin Acquisition and our estimate of their respective useful lives are as follows: Initial Final Useful Life Valuation (in years) (in thousands) Trade name $ 24,000 indefinite Customer relationships 52,700 15 Customer-related backlog (amortized in 2022) 400 < 1 Developed technology 14,600 3 - 14 Non-compete-related intangible 200 5 Intangible assets, net $ 91,900 Anlin Windows & Doors On October 25, 2021 , we completed the acquisition of Anlin Windows & Doors. The acquisition was done by Western Window Holding LLC, a Delaware limited liability company, indirectly wholly-owned by PGT Innovations, Inc., which acquired substantially all of the assets, properties and rights owned, used or held for use in the business, as operated by Anlin Industries, a California corporation, of manufacturing vinyl windows and doors for the replacement market and the new construction market, and all activities conducted in connection therewith (the "Anlin Acquisition"), pursuant to that certain Asset Purchase Agreement dated as of September 1, 2021 (the “Anlin Purchase Agreement”), by and among the Company, and Anlin Industries. The fair value of consideration transferred in the Anlin Acquisition was $ 121.7 million, composed of $ 115.0 million in cash, including $ 113.5 million for purchase price and $ 1.5 million in working capital adjustments, including $ 0.8 million paid during the three months ended October 1, 2022, and fair value of contingent consideration of $ 6.7 million, discussed in greater detail below. The Anlin Purchase Agreement provided for the potential for earn-out contingency payments to the sellers should Anlin achieve a certain level of earnings before interest, taxes, depreciation and amortization, ("Anlin EBITDA"), as defined in the Anlin Purchase Agreement, for its fiscal years of 2021 and 2022, of up to $ 3.2 million to be paid out by March 31, 2022, and of up to $ 9.5 million to be paid out by March 31, 2023, respectively. We had recorded a preliminary earn-out contingent liability of $ 5.9 million as of our 2021 fiscal year ended January 1, 2022, which represented its then estimated fair value based on probability adjusted levels of estimated Anlin EBITDA. Estimated Anlin EBITDA is a significant input that is not observable in the market, which ASC 820 considers to be a Level 3 input. In the first quarter of 2022, we finalized the fair value of the earn-out contingency, which we adjusted by an additional $ 0.8 million, to a total of $ 6.7 million of estimated fair value of contingent consideration as of the effective date of the Anlin Acquisition. This amount included $ 2.4 million for the contingent consideration relating to 2021 Anlin EBITDA and $ 4.3 million for the contingent consideration relating to the 2022 Anlin EBITDA. The first contingent consideration payment was agreed to be $ 2.7 million, which exceeded its estimated fair value by $ 0.3 million. This excess is classified as selling, general and administrative expenses in our 2022 fiscal year ended December 31, 2022. The payment was made during the second quarter of 2022 after both parties agreed to extend the deadline for the first payment past the March 31, 2022 due date stated in the Anlin Purchase Agreement. As of the end of 2022, we updated our estimate of the fair value of the contingent consideration relating to 2022 Anlin EBITDA to $ 9.5 million, which was the maximum potential payout for fiscal year 2022 under the Anlin Purchase Agreement, which we paid-out in the first quarter of 2023. As such, we recognized an expense of approximately $ 5.1 million, representing the difference between this updated estimated fair value, and the fair value estimated in our purchase price allocation, classified as selling, general and administrative expenses in the year ended December 31, 2022. Having paid all contingent consideration in the Anlin Acquisition, which combined totaled $ 12.1 million and which exceeds the $ 6.7 million fair value on contingent consideration established in the purchase allocation, we believe that our tax basis in the goodwill of the Anlin Acquisition is equal to its book basis of $ 9.6 million. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | 6. Property, Plant and Equipment The following table presents the composition of property, plant and equipment as of: December 30, December 31, 2023 2022 (in thousands) Land $ 10,563 $ 10,563 Buildings and improvements 114,506 108,629 Machinery and equipment 195,223 185,229 Vehicles 26,462 24,975 Software 32,286 31,729 Construction in progress 69,069 33,628 Property, plant and equipment 448,109 394,753 Less: Accumulated depreciation ( 209,983 ) ( 186,399 ) Property, plant and equipment, net $ 238,126 $ 208,354 The Company recognized depreciation expense of $ 36.0 million, $ 34.0 million, and $ 30.5 million related to property, plant and equipment during the years ended December 30, 2023, December 31, 2022, and January 1, 2022, respectively, of which $ 24.4 million, $ 22.3 million, and $ 19.3 million, respectively, are classified within cost of sales in the accompanying consolidated statements of operations of those years, with the remainder classified within selling, general and administrative expenses. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 7. Goodwill and Intangible Assets Goodwill and intangible assets are as follows as of: Initial December 30, December 31, WA Useful Life 2023 2022 (in years) (in thousands) Goodwill $ 462,630 $ 460,415 indefinite Other intangible assets: Trade names (indefinite-lived) $ 219,518 $ 225,018 indefinite Customer relationships and customer-related assets 340,047 340,047 < 1 - 15 Trade name (amortizable) 22,200 22,200 15 Developed technology 20,500 20,500 3 - 14 Non-compete agreements 3,538 3,538 2 - 5 Software license 590 590 2 Total amortizable intangibles 386,875 386,875 13 Less: Accumulated amortization ( 191,148 ) ( 164,841 ) Total amortizable intangibles, net 195,727 222,034 Other intangible assets, net $ 415,245 $ 447,052 Goodwill at December 31, 2022 $ 460,415 Increase from Martin Acquisition net working capital payment 744 Net other measurement period changes in Martin Acquisition 1,471 Goodwill at December 30, 2023 $ 462,630 Trade names (indefinite-lived) at December 31, 2022 $ 225,018 Decrease due to impairment of Martin trade name ( 5,500 ) Trade names (indefinite-lived) at December 30, 2023 $ 219,518 Amortizable Intangible Assets We test amortizable intangible assets for impairment when indicators of impairment exist. No impairment was recorded for any period presented. Estimated amortization of our amortizable intangible assets is as follows for future fiscal years: (in thousands) Total 2024 $ 25,971 2025 25,640 2026 21,241 2027 20,987 2028 16,771 Thereafter 85,117 Total $ 195,727 Amortization Expense Amortization expense relating to amortizable intangible assets for the years ended December 30, 2023, December 31, 2022, and January 1, 2022, respectively, was $ 26.3 million, $ 26.2 million, and $ 21.1 million, respectively, classified within selling, general and administrative expenses in the accompanying consolidated statements of operations. Accumulated amortization at December 30, 2023, and December 31, 2022 was $ 191.1 million and $ 164.8 million, respectively, and is composed of the accumulated amortization of the components of amortizable intangible assets, as follows: Customer relationships and customer-related assets - $ 174.9 million and $ 153.6 million; Trade name (amortizable) - $ 5.8 million and $ 4.3 million; Developed technology - $ 6.9 million and $ 3.7 million; Non-compete agreement - $ 3.0 million and $ 2.6 million; and, Software license - $ 0.6 million and $ 0.6 million. Goodwill We perform our annual goodwill impairment testing on the first day of our fiscal fourth quarter of each year, and at interim periods if needed based on occurrence of triggering events. The Company performed a qualitative assessment for each reporting unit. The qualitative assessments indicated that it was more likely than not that the fair value of each reporting unit exceeded its respective carrying value. As of December 30, 2023, and December 31, 2022, the carrying value of our Southeast reporting unit goodwill was $ 228.3 million and $ 228.3 million, respectively. As of December 30, 2023, and December 31, 2022, the carrying value of our Western reporting unit goodwill is $ 234.3 million and $ 232.1 million, respectively. Indefinite-Lived Intangible Assets We perform our annual indefinite-lived intangible asset impairment testing on the first day of our fiscal fourth quarter of each year, and at interim periods if needed based on occurrence of triggering events. In 2023, because of post-acquisition sales levels below those used in its initial valuation, we determined such conditions represented a triggering event and that we should complete a quantitative impairment test of our Martin trade name as of our annual impairment test date of the first day of our fourth quarter of 2023. Based on our revised modeling, which included our assumptions regarding future revenue, which we consider to be a Level 3 input, using the relief-from-royalty method, we concluded that the fair value of our Martin trade name was less than its carrying value, which resulted in an impairment of our Martin trade name of $ 5.5 million in our fourth quarter of 2023. As of December 30, 2023, and December 31, 2022, the carrying value of our Martin trade name was $ 18.5 million and $ 24.0 million, respectively. In 2022, given the narrow excess of fair value over carrying value of our WinDoor trade name in the first quarter of 2020, the last time we performed a quantitative assessment of our WinDoor trade name, and the then recent decrease in sales of our WinDoor brand, we determined such conditions represented triggering events and that we should complete a quantitative impairment test of our WinDoor trade name as of our annual impairment test date of the first day of our fourth quarter of 2022. Based on our revised modeling, which included our assumptions regarding future revenue, which we consider to be a Level 3 input, using the relief-from-royalty method, we concluded that the fair value of our WinDoor trade name was less than its carrying value, which resulted in an impairment of our WinDoor trade name of $ 7.4 million in our fourth quarter of 2022. As of December 30, 2023, and December 31, 2022, the carrying value of our WinDoor trade name was $ 11.0 million and $ 11.0 million, respectively. For our other indefinite-lived trade names, we completed qualitative assessments of these assets on the first day of our fourth quarter of 2023. These qualitative assessments included an evaluation of relevant events and circumstances that existed at the date of our assessment. Those events and circumstances included conditions specific to our other indefinite-lived trade names, such as the industry in which we use these other indefinite-lived trade names, our competitive environment, the availability and costs of raw materials and labor, the financial performance of our Company, and factors related to the markets in which our Company operates. We also considered that, for our other indefinite-lived trade names, no new impairment indicators were identified since the dates of our prior assessments, which were qualitative assessments all other indefinite-lived intangibles other than goodwill. Based on these assessments, we concluded that it is more likely than not that the fair values of our other indefinite-lived trade names exceed their carrying values. As of December 30, 2023, and December 31, 2022, excluding the Martin trade name, the carrying values of other indefinite-lived trade names were $ 201.0 million and $ 201.0 million, respectively. |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Dec. 30, 2023 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | 8. Accrued Liabilities Accrued liabilities consisted of the following as of: December 30, December 31, 2023 2022 Accrued liabilities (in thousands) Accrued payroll and benefits $ 18,834 $ 34,741 Customer deposits, net of those classified within contract assets 17,125 33,387 Accrued federal and state income taxes 7,016 16,375 Accrued warranty 12,164 12,379 Contingent consideration, current - 9,455 Accrued interest 6,332 6,594 Advance supplier consideration 2,594 2,808 Accrued health claims insurance payable 2,193 2,068 Other 6,932 7,427 Accrued liabilities $ 73,190 $ 125,234 See Note 5 for a discussion of the estimated fair value of contingent consideration related to the Anlin Acquisition. Other accrued liabilities are comprised primarily of state sales taxes, property taxes and customer rebates. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 30, 2023 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | 9. Long-Term Debt Long-term debt consists of the following: December 30, December 31, 2023 2022 (in thousands) 2021 Senior Notes Due 2029 - Senior notes issued on September 24, 2021, 4.375 % per annum $ 575,000 $ 575,000 2016 Credit Agreement Due 2027 - Revolving credit facility 7.11 %, including a SOFR rate of 5.36 % and an applicable margin of 1.75 %. At December 31, 6.07 %, including a SOFR rate of 4.32 % and an applicable margin of 1.75 %. 45,000 76,352 Long-term debt 620,000 651,352 Fees, costs, and discount (1) ( 7,898 ) ( 9,218 ) Long-term debt, net 612,102 642,134 Less current portion of long-term debt — — Long-term debt, net, less current portion $ 612,102 $ 642,134 (1) Fees, costs, and discount represents third-party fees, lender fees, other debt-related costs, and original issue premium and discount, recorded as a net reduction of the carrying value of debt and are amortized over the lives of the debt instruments to which they relate under the effective interest method. 2021 Senior Notes due 2029 On September 24, 2021, we completed the issuance of $ 575.0 million aggregate principal amount of 4.375 % senior notes (“2021 Senior Notes due 2029”), issued at 100 % of their principal amount. The 2021 Senior Notes due 2029 are jointly and severally and fully and unconditionally guaranteed on a senior unsecured basis by each of the Company’s existing and future restricted subsidiaries, other than any restricted subsidiary of the Company that does not guarantee the existing senior secured credit facilities or any permitted refinancing thereof. The 2021 Senior Notes due 2029 are senior unsecured obligations of the Company and the guarantors, respectively, and rank pari passu in right of payment with all existing and future senior debt and senior to all existing and future subordinated debt of the Company and the guarantors. The 2021 Senior Notes due 2029 were offered under Rule 144A of the Securities Act, and in transactions outside the United States under Regulation S of the Securities Act, and have not been, and will not be, registered under the Securities Act. The 2021 Senior Notes due 2029 mature on October 1, 2029 . Interest on the 2021 Senior Notes due 2029 is payable semi-annually, in arrears, which began on April 1, 2022, with interest accruing at a rate of 4.375 % per annum from September 24, 2021. We incurred financing costs relating to bank fees and professional services costs relating to the offering and issuance of the 2021 Senior Notes due 2029 totaling $ 8.7 million, which included a 1.25 % lender spread on the total principal value of the 2021 Senior Notes due 2029, or $ 7.2 million, and $ 1.5 million of other costs, all of which are being amortized under the effective interest method. As of December 30, 2023, the face value of debt outstanding under the 2021 Senior Notes due 2029 was $ 575.0 million, and accrued interest was $ 6.3 million. Proceeds from the 2021 Senior Notes due 2029 were used, in part, to redeem in full the $ 425.0 million of 2018 Senior Notes due 2026, including the related fees, costs and the prepayment call premium of $ 21.5 million, representing 5.063 % of the $ 425.0 million face value then outstanding, prepay the outstanding term loan borrowings under the then existing 2016 Credit Agreement 2024 of $ 60.0 million and the related fees and costs, and finance the Anlin Acquisition in the fourth quarter of 2021. The indenture for the 2021 Senior Notes due 2029 gives us the option to redeem some or all of the 2021 Senior Notes due 2029 at the redemption prices and on the terms specified in the indenture governing the 2021 Senior Notes due 2029. The indenture governing the 2021 Senior Notes due 2029 does not require us to make any mandatory redemptions or sinking fund payments. However, upon the occurrence of a change of control, as defined in the indenture, the Company is required to offer to repurchase the notes at 101 % of the aggregate principal amount thereof, plus accrued and unpaid interest, if any, to the date of purchase. We also may make optional redemptions at various premiums including a make-whole call at the then current treasury rate plus 50 basis points prior to October 1, 2024, then 102.188 % on or after August 1, 2024, 101.094 % on or after August 2025, then at 100.000 % on or after August 1, 2026. The indenture for the 2021 Senior Notes due 2029 includes certain covenants limiting the ability of the Company and any guarantors to, (i) incur additional indebtedness; (ii) pay dividends on or make distributions in respect of capital stock or make certain other restricted payments or investments; (iii) enter into agreements that restrict distributions from restricted subsidiaries; (iv) sell or otherwise dispose of assets; (v) enter into transactions with affiliates; (vi) create or incur liens; merge, consolidate or sell all or substantially all of the Company’s assets; (vii) place restrictions on the ability of subsidiaries to pay dividends or make other payments to the Company; and (viii) designate the Company’s subsidiaries as unrestricted subsidiaries. These covenants are subject to a number of important exceptions and qualifications. 2016 Credit Agreement due 2027 On February 16, 2016 , we entered into the 2016 Credit Agreement. From 2016 to 2022, we entered into various amendments to the 2016 Credit Agreement, including the amendment in October 2022, as described below. On October 13, 2022, the Company entered into an amendment of the 2016 Credit Agreement (the “Fifth Amendment”) due 2027. The Fifth Amendment provides for, among other things, a five-year revolving credit facility in an aggregate principal amount of $ 250.0 million (the “New Revolving Credit Facility”). The New Revolving Credit Facility refinances and replaces the previously existing $ 80.0 million revolving credit facility under the 2016 Credit Agreement. The Company’s obligations under the 2016 Credit Agreement due 2027 continue to be secured by substantially all of its and its direct and indirect subsidiaries’ assets, and is senior in position to the 2021 Senior Notes due 2029. Contemporaneously with the Fifth Amendment, the Company drew down $ 160.0 million of funds available under the New Revolving Credit Facility. Proceeds totaling $ 61.6 million from the $ 160.0 million drawdown were used to repay then existing term loan borrowings under the 2016 Credit Agreement totaling $ 60.0 million, plus accrued interest and fees totaling $ 1.6 million. As discussed below, the remaining $ 98.4 million of proceeds were used to fund the cash portion of the Martin Acquisition. The Company has made net repayments of the initial $ 160.0 million of borrowings under the New Revolving Credit Facility totaling $ 115.0 million through December 30, 2023. Interest on borrowings under the New Revolving Credit Facility is payable either quarterly or at the expiration of any Secured Overnight Financing Rate ("SOFR") interest period applicable thereto. Borrowings under the New Revolving Credit Facility accrue interest at a rate equal to, at our option, a base rate (with a floor of 100 basis points) plus a percentage spread (ranging from 0.75 % to 1.75 %) based on our first lien net leverage ratio or SOFR (with a floor of 0 basis points) plus a percentage spread (ranging from 1.75 % to 2.75 %) based on our first lien net leverage ratio. After giving effect to the Fifth Amendment, we will pay quarterly commitment fee on the unused portion of the New Revolving Credit Facility equal to a percentage spread (ranging from 0.25 % to 0.35 %) based on our first lien net leverage ratio. The Fifth Amendment also modifies the application of the financial covenant under the 2016 Credit Agreement such that testing will occur on a quarterly basis, and requires we maintain a first lien net leverage ratio of not more than 4.00 to 1.00 . We were in compliance with this covenant as of December 30, 2023. The 2016 Credit Agreement due 2027 includes certain covenants limiting the ability of the Company and any guarantors to, (i) incur additional indebtedness; (ii) pay dividends on or make distributions in respect of capital stock or make certain other restricted payments or investments; (iii) sell or otherwise dispose of assets; (iv) enter into transactions with affiliates; (v) create or incur liens; (vi) merge, consolidate or sell all or substantially all of the Company’s assets; (vii) place restrictions on the ability of subsidiaries to pay dividends or make other payments to the Company; (viii) make investments and (ix) designate the Company’s subsidiaries as unrestricted subsidiaries. These covenants are subject to a number of important exceptions and qualifications. As of December 30, 2023, borrowings outstanding under the $ 250.0 million New Revolving Credit Facility totaled $ 45.0 million, and accrued interest was $ 43 thousand. There were $ 8.5 million in letters of credit outstanding. Availability under the New Revolving Credit Facility at December 30, 2023 totaled $ 196.5 million. The weighted average all-in interest rate for borrowings under the existing revolving credit facility of the 2016 Credit Agreement due 2027 was 7.11 % as of December 30, 2023, and for borrowings under the term loan facility of the then existing 2016 Credit Agreement due 2024 was 6.07 % at December 31, 2022. The Martin Acquisition was financed in part with the $ 250.0 million available under the New Revolving Credit Facility provided by the Fifth Amendment of our 2016 Credit Agreement due 2027, under which we drew $ 160.0 million on October 14, 2022, the proceeds of which were used to pay $ 98.4 million of the $ 188.5 million total fair value of consideration transferred at closing, and $ 61.6 million to prepay our $ 60.0 million existing term loans under the Fourth Amendment of our 2016 Credit Agreement due 2027, plus $ 1.6 million in fees, costs and accrued interest. The remainder of the total fair value of consideration transferred at closing totaling $ 90.1 million was funded with cash on hand previously generated through operations. Deferred Financing Costs Activity relating to deferred financing costs, which is classified as a reduction of the carrying value of long-term debt, for year ended December 30, 2023, are as follows: (in thousands) Total At beginning of year $ 9,218 Less: Amortization expense ( 1,320 ) At end of year $ 7,898 Estimated amortization expense relating to third-party fees and costs, lender fees and discount for the years indicated, as of December 30, 2023, is as follows: (in thousands) Total 2024 $ 1,366 2025 1,442 2026 1,466 2027 1,440 2028 1,222 Thereafter 962 Total $ 7,898 The following represents future maturities of long-term debt as of December 30, 2023 (at face value): (in thousands) Total 2024 $ — 2025 — 2026 — 2027 45,000 2028 — Thereafter 575,000 Total $ 620,000 Interest Expense, Net Interest expense, net consisted of the following: Year Ended December 30, December 31, January 1, 2023 2022 2022 (in thousands) Long-term debt $ 30,527 $ 27,866 $ 28,625 Debt fees 697 433 474 Amortization and write-offs of deferred financing costs and debt discount 1,320 1,242 978 Interest income ( 1,245 ) ( 620 ) ( 27 ) Interest expense 31,299 28,921 30,050 Capitalized interest ( 222 ) ( 42 ) ( 21 ) Interest expense, net $ 31,077 $ 28,879 $ 30,029 |
Derivatives
Derivatives | 12 Months Ended |
Dec. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | 10. Derivatives Aluminum Contracts and Midwest Transaction Premium We enter into aluminum forward contracts to hedge the fluctuations in the purchase price of aluminum extrusion we use in production. We also enter into forward contracts to hedge the fluctuations in the price of the delivery component of our aluminum extrusion purchases, known as the Midwest Transaction Premium, or MTP. Our contracts are designated as cash flow hedges since they are highly effective in offsetting changes in the cash flows attributable to forecasted purchases of aluminum and the related MTP. We record our aluminum hedge contracts at fair value, based on trading values for aluminum forward contracts. Aluminum forward contracts identical to those held by us trade on the London Metal Exchange (“LME”). The LME provides a transparent forum and is the world’s largest center for the trading of futures contracts for non-ferrous metals. The prices are used by the metals industry worldwide as the basis for contracts for the movement of physical material throughout the production cycle. Based on this high degree of volume and liquidity in the LME, we believe the valuation price at any measurement date for contracts with identical terms as to prompt date, trade date and trade price as those we hold at any time represents a contract’s exit price to be used for purposes of determining fair value. We record our MTP hedge contracts at fair value, based on the Platts MW US Transaction price per pound assessment, which has been a benchmark for decades in the North American aluminum industry. Platts surveys the North American market daily to capture trades, bids and offers on a delivered Midwest basis. Data is normalized to reflect the typical price per pound between the largest number of market participants, for delivery within 7 to 30 days from date of publication, net- 30 -day payment terms, for typical order quantities, chemistries and freight allowances. The survey is extensive and encompasses both domestic and offshore producers, traders and brokers that are varied in scope. Based on the extensive nature of this pricing mechanism, we believe the Platts MW US Transaction price at any time represents a contract’s exit price to be used for purposes of determining fair value. Guidance under the Financial Instruments Topic 825 of the Codification requires us to record our hedge contracts at fair value and consider our credit risk for contracts in a liability position, and our counter-party’s credit risk for contracts in an asset position, in determining fair value. We assess our counter-party’s risk of non-performance when measuring the fair value of financial instruments in an asset position by evaluating their financial position, including cash on hand, as well as their credit ratings. We assess our risk of non-performance when measuring the fair value of our financial instruments in a liability position by evaluating our credit ratings, our current liquidity including cash on hand and availability under our New Revolving Credit Facility as compared to the maturities of the financial liabilities. Management makes an accounting policy election not to offset the estimated fair value amounts recognized for derivatives executed with the same counterparty under the same master netting arrangement. Our counterparties to our derivative contracts do not require the Company to post collateral against hedge contracts in a liability position, if any. At December 30, 2023, the fair value of our aluminum forward contracts was in an asset position of $ 0.3 million. We had 9 outstanding forward contracts for the purchase of 6.6 million pounds of aluminum through June 2024, at an average price of $ 1.04 per pound, which excludes the Midwest premium, with maturity dates of between one month and six months . At December 30, 2023, we had no outstanding MTP hedge contracts. We assessed the risk of non-performance of the Company and our counterparty, as applicable, and determined it was immaterial and, therefore, did not record any adjustment to the fair value as of December 30, 2023. We assess the effectiveness of our cash flow hedges by comparing the change in the fair value of the forward contract to the change in the expected cash to be paid for the hedged item. The gain or loss on our hedging contracts is reported as a component of accumulated other comprehensive income (loss) and is reclassified into earnings in the same line item in the income statement as the hedged item in the same period or periods during which the transaction affects earnings. The amount of income, net, recognized in the “accumulated other comprehensive income (loss)” line item in the accompanying consolidated balance sheet as of December 30, 2023, that we expect will be reclassified to earnings within the next twelve months, is $ 0.3 million. The fair values of our aluminum hedges and MTP contracts are classified in the accompanying consolidated balance sheets at December 30, 2023, and December 31, 2022, as follows (in thousands): Derivative Assets Derivative (Liabilities) December 30, 2023 December 30, 2023 Derivatives designated as hedging instruments under Subtopic 815-20: Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivative instruments: Aluminum forward contracts Other current assets $ 257 Accrued liabilities $ — MTP contracts Other current assets — Accrued liabilities — Aluminum forward contracts Other assets — Other liabilities — MTP contracts Other assets — Other liabilities — Total derivative instruments Total derivative assets $ 257 Total derivative liabilities $ — Derivative Assets Derivative (Liabilities) December 31, 2022 December 31, 2022 Derivatives designated as hedging instruments under Subtopic 815-20: Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivative instruments: Aluminum forward contracts Other current assets $ — Accrued liabilities $ — MTP contracts Other current assets 300 Accrued liabilities — Aluminum forward contracts Other assets — Other liabilities — MTP contracts Other assets — Other liabilities — Total derivative instruments Total derivative assets $ 300 Total derivative liabilities $ — The ending accumulated balance for the aluminum forward and MTP contracts included in accumulated other comprehensive income, net of tax, was $ 0.2 million as of December 30, 2023, and $ 0.2 million as of December 31, 2022. The following represents the gains (losses) on derivative financial instruments, and their classifications within the accompanying consolidated financial statements for the three years ended December 30, 2023 (in thousands): Derivatives in Cash Flow Hedging Relationships Amount of Gain or (Loss) Recognized in OCI(L) on Derivatives Location of Gain or (Loss) Reclassified from Accumulated OCI(L) into Income Amount of Gain or (Loss) Reclassified from Accumulated OCI(L) into Income Year Ended Year Ended January 1, 2022 January 1, 2022 Aluminum contracts $ 14,012 Cost of sales $ 12,373 MTP contracts $ 10,443 Cost of sales $ 6,265 December 31, 2022 December 31, 2022 Aluminum contracts ($ 7,732 ) Cost of sales ($ 2,903 ) MTP contracts $ 42 Cost of sales $ 4,341 December 30, 2023 December 30, 2023 Aluminum contracts ($ 361 ) Cost of sales ($ 618 ) MTP contracts ($ 94 ) Cost of sales $ 206 We classify cash flows related to derivative instruments as operating activities in the accompanying consolidated statements of cash flows. |
Fair Value
Fair Value | 12 Months Ended |
Dec. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value | 11. Fair Value Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. A three-tier fair value hierarchy is used to prioritize the inputs used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted market prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The three levels of the fair value hierarchy are as follows: Level 1 Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Level 2 Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. The accounting guidance concerning fair value allows us to elect to measure financial instruments at fair value and report the changes in fair value through earnings. This election can only be made at certain specified dates and is irrevocable once made. We do not have a policy regarding specific assets or liabilities to elect to measure at fair value, but rather we make the election on an instrument-by-instrument basis as they are acquired or incurred. During 2023, 2022, or 2021, we did no t make any transfers between Level 1, Level 2 or Level 3 financial assets. We conduct reviews on a quarterly basis to verify pricing, assess liquidity, and determine if significant inputs have changed that would impact the fair value hierarchy disclosure. Fair Value of Financial Instruments Our financial instruments include cash equivalents, accounts and notes receivable, accounts payable, and accrued liabilities, whose carrying amounts approximate their fair values due to their short-term nature. Our financial instruments also include borrowings under the revolving credit facility of our 2016 Credit Agreement due 2027, as well as the 2021 Senior Notes due 2029 at December 30, 2023 and December 31, 2022, all classified as long-term debt. The fair value of borrowings under the revolving credit facility of our 2016 Credit Agreement due 2027 approximates its carrying value due to its variable interest rate nature, and was approximately $ 45.0 million as of December 30, 2023, compared to a principal outstanding value of $ 45.0 million, and $ 76.4 million as of December 31, 2022, compared to a principal outstanding value of $ 76.4 million. The fair value of the 2021 Senior Notes due 2029 is also based on debt with similar terms and characteristics and was approximately $ 549.1 million as of December 30, 2023, compared to a principal outstanding value of $ 575.0 million, and $ 480.8 million as of December 31, 2022, compared to a principal outstanding value of $ 575.0 million. Fair values were determined based on observed trading prices of our debt between domestic financial institutions, which we consider to be Level 2 inputs. The carrying amounts for financial instruments measured at fair value are as follows: Fair Value Measurements Assets (Liabilities) Quoted Significant Prices in Other Significant Active Observable Unobservable Markets Inputs Inputs December 30, 2023 Total (Level 1) (Level 2) (Level 3) Description Aluminum forward contracts $ 257 $ — $ 257 $ — MTP contracts — — — — $ 257 $ — $ 257 $ — December 31, 2022 Total (Level 1) (Level 2) (Level 3) Description Aluminum forward contracts, net $ — $ — $ — $ — MTP contracts, net 300 — 300 — $ 300 $ — $ 300 $ — |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 12. Income Taxes Income Tax Expense The components of income tax expense are as follows (in thousands): Year Ended December 30, December 31, January 1, 2023 2022 2022 Current: Federal $ 24,402 $ 34,411 $ 790 State 6,856 9,595 1,337 Total current tax expense 31,258 44,006 2,127 Deferred: Federal 5,506 ( 8,661 ) 7,142 State 1,246 ( 2,679 ) 490 Total deferred tax expense (benefit) 6,752 ( 11,340 ) 7,632 Income tax expense $ 38,010 $ 32,666 $ 9,759 The aggregate amount of income taxes included in the consolidated statements of operations and consolidated statements of shareholders’ equity are as follows (in thousands): Year Ended December 30, December 31, January 1, 2023 2022 2022 Consolidated statements of operations: Income tax expense relating to continuing operations $ 38,010 $ 32,666 $ 9,759 Consolidated statements of shareholders' equity: Income tax benefit (expense) relating to derivatives $ 11 $ 2,345 $ ( 1,531 ) Reconciliation of the Statutory Rate to the Effective Rate A reconciliation of the statutory federal income tax rate to our effective rate is provided below: Year Ended December 30, December 31, January 1, 2023 2022 2022 Statutory federal income tax rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal income tax benefit 4.6 % 4.7 % 3.2 % Non-deductible expenses 3.0 % 1.3 % 1.3 % Research activities credits ( 0.9 )% ( 1.2 )% ( 0.8 )% Florida excess tax refund relating to the Tax Cuts and Jobs Act — ( 0.4 )% — Eco partnership income attributable to non-controlling interest ( 0.2 )% ( 0.3 )% ( 1.2 )% Excess stock-based compensation tax benefits ( 1.4 )% ( 0.1 )% ( 2.0 )% Other ( 0.4 )% ( 0.1 )% 0.2 % Consolidated effective tax rate 25.7 % 24.9 % 21.7 % Deferred Income Taxes Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of our net deferred tax liability are as follows: December 30, December 31, 2023 2022 (in thousands) Deferred tax assets: Operating lease liability $ 34,517 $ 21,496 Deferrals and accruals relating to ASC 606, net 5,530 5,707 State bonus depreciation and tax credits 3,897 3,926 Stock-based compensation expense 2,113 2,926 Accrued warranty 3,900 3,564 Acquisition costs 3,354 2,236 Advance supplier consideration 664 1,388 Other deferrals and accruals, net 9,247 10,039 Obsolete inventory, UNICAP and other related items — 4,054 Allowance for credit losses 4,216 3,885 Total deferred tax assets 67,438 59,221 Deferred tax liabilities: Property, plant and equipment ( 21,453 ) ( 21,257 ) Trade names and other intangible assets, net ( 38,221 ) ( 39,193 ) Goodwill ( 23,823 ) ( 21,303 ) Operating lease right-of-use asset ( 31,741 ) ( 19,655 ) Obsolete inventory, UNICAP and other related items ( 2,612 ) — Eco partnership basis difference — ( 2,921 ) Derivative financial instruments ( 66 ) ( 77 ) Prepaid expenses ( 2,207 ) ( 2,222 ) Total deferred tax liabilities ( 120,123 ) ( 106,628 ) Total deferred tax liabilities, net $ ( 52,685 ) $ ( 47,407 ) Tax Basis in Goodwill We have goodwill deductible for tax purposes in certain of our acquisitions as the transactions were acquisitions of stock treated as step-up acquisitions of assets and assumption of liabilities pursuant to elections under section 338(h)(10) or 743(b) of the Internal Revenue Code, or the transactions were structured as acquisitions of assets and assumptions of liabilities. The unamortized amount of this goodwill for tax purposes, including the goodwill as a result of the Anlin Acquisition discussed below. In the Martin Acquisition, we acquired goodwill. Because the Martin Acquisition was structured as an acquisition of the stock of a C corporation, a step-up election is not available. Therefore, we do not believe any of the goodwill as a result of the Martin Acquisition is deductible for tax purposes. Excess Tax Benefits Excess tax benefits resulting from the exercise of stock options and lapse of restriction on stock awards are recognized as a component of tax expense. Income tax expense in the years ended December 30, 2023, December 31, 2022, and January 1, 2022, includes excess tax benefits totaling $ 2.0 million, $ 0.2 million, and $ 0.9 million, respectively. Income Taxes Payable and Payments Accrued liabilities at December 30, 2023 and December 31, 2022 include income taxes currently payable of $ 7.0 million and $ 16.4 million, respectively. During the years ended December 30, 2023 and December 31, 2022, we made payments of income taxes totaling $ 40.6 million and $ 21.5 million, respectively. Income Tax Effects of Accumulated Other Comprehensive Income (Loss) We reclassify to the income tax effects of accumulated other comprehensive income (loss) to income taxes in the same period as the reclassification of the related item of accumulated other comprehensive income (loss) to earnings. Open Tax Years The tax years 2019 to 2022 remain open for examination. |
Leases, Commitments and Conting
Leases, Commitments and Contingencies | 12 Months Ended |
Dec. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Leases, Commitments And Contingencies | 13. Leases, Commitments and Contingencies Leases We lease certain of our manufacturing facilities under operating leases. We also lease production equipment, vehicles, computer equipment, storage units and office equipment under operating leases. Our leases have remaining lease terms of 1 year to 12 years , some of which may include options to extend the leases for up to 5 years , and some of which may include options to terminate the leases within 1 year . All of our leases are operating leases. We did not recognize right-of-use assets or lease liabilities for certain short-term leases that are month-to-month leases. As of December 30, 2023, we had no additional operating or finance leases that have not yet commenced . Our operating leases expire at various times through 2035. Lease expense for the years ended December 30, 2023, December 31, 2022, and January 1, 2022, totaled $ 34.4 million, $ 30.7 million, and $ 25.1 million, respectively, and includes $ 18.1 million, $ 15.6 million, and $ 10.6 million, respectively, classified in cost of sales in the accompanying consolidated statement of operations, with the remainder as selling, general and administrative expenses. The components of lease expense for the years ended December 30, 2023, December 31, 2022 and January 1, 2022, are as follows (in thousands): Year Ended December 30, December 31, January 1, 2023 2022 2022 Operating lease cost $ 23,944 $ 20,490 $ 15,254 Short-term lease cost 10,493 10,175 9,872 Total lease cost $ 34,437 $ 30,665 $ 25,126 Other information relating to leases for the years ended December 30, 2023, December 31, 2022 and January 1, 2022,, are as follows (in thousands, except years and percentages): Year Ended December 30, December 31, January 1, 2023 2022 2022 Supplemental cash flows information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows relating to operating leases $ ( 22,966 ) $ ( 19,635 ) $ ( 13,750 ) Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 44,424 $ 29,031 $ 65,678 Weighted average remaining lease term in years Operating leases 6.91 7.12 7.04 Weighted average discount rate Operating leases 5.3 % 5.2 % 5.5 % Future minimum lease commitments for operating leases are as follows (in thousands): December 30, 2023 2024 $ 26,687 2025 25,943 2026 24,480 2027 23,400 2028 19,376 Thereafter 39,849 Total future minimum lease payments 159,735 Less: Imputed interest ( 25,337 ) Operating lease liability - total $ 134,398 Reported as of December 30, 2023: Current portion of operating lease liability $ 20,368 Operating lease liability, less current portion 114,030 Operating lease liability - total $ 134,398 Purchase Commitments We are obligated to purchase certain raw materials used in the production of our products from certain suppliers pursuant to stocking programs. If these programs were cancelled by us, as of December 30, 2023, and December 31, 2022, we would be required to pay $ 30.6 million and $ 26.1 million, respectively, for various materials. During the years ended December 30, 2023, December 31, 2022, and January 1, 2022, we made purchases under these programs totaling $ 459.9 million, $ 454.6 million and $ 262.4 million, respectively. The Company expects to utilize its purchase commitments in its normal ongoing operations. At December 30, 2023, we had $ 8.5 million in standby letters of credit related to our workers’ compensation insurance coverage. Legal Proceedings We are a party to various legal proceedings in the ordinary course of business. Although the ultimate disposition of those proceedings cannot be predicted with certainty, management believes the outcome of any claim that is pending or threatened, either individually or on a combined basis, will not have a materially adverse effect on our operations, financial position or cash flows. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 30, 2023 | |
Postemployment Benefits [Abstract] | |
Employee Benefit Plans | 14. Employee Benefit Plans Defined Contribution Plan We have a 401(k) plan covering substantially all employees 18 years of age or older who have at least three months of service. Employees may contribute up to 80 % of their annual compensation subject to Internal Revenue Code maximum limitations. We currently make matching contributions based on our operating results. During the years ended December 30, 2023, December 31, 2022, and January 1, 2022, there was a matching contribution of up to 3 %, in each year made at various times during the year. Company contributions and earnings thereon vest at the rate of 20 % per year of service with us when at least 1,000 hours are worked within the Plan year. We recognized expenses for such employer matching of $ 6.8 million, $ 6.5 million and $ 4.5 million for the years ended December 30, 2023, December 31, 2022, and January 1, 2022, respectively. 2019 Employee Stock Purchase Plan On May 22, 2019, our shareholders approved, and we adopted the 2019 Employee Stock Purchase Plan (the “2019 ESPP”) whereby eligible employees may purchase the Company’s common stock at a discount from fair market value represented by the trading price of the Company’s common stock on the NYSE. Eligible employees may purchase the Company’s common stock at a price which is determined by the Compensation Committee of the Board of Directors of the Company, but which will be no less than 85 % of fair market value, as defined in the 2019 ESPP. There is a maximum of 700,000 shares issuable under the 2019 ESPP. Since its approval by our shareholders, there have been 157,677 shares issued under the 2019 ESPP. |
Related Parties
Related Parties | 12 Months Ended |
Dec. 30, 2023 | |
Related Party Transactions [Abstract] | |
Related Parties | 15. Related Parties In the ordinary course of business, we sell windows to Builders FirstSource, Inc. One of our directors, Brett Milgrim, is currently a director of Builders FirstSource, Inc., and Floyd Sherman, another of our directors, is a former director and the former Chief Executive Officer of Builders FirstSource, Inc. Our total net sales to Builders FirstSource, Inc. were $ 25.6 million, $ 54.0 million and $ 25.9 million for the years ended December 30, 2023, December 31, 2022, and January 1, 2022. As of December 30, 2023, and December 31, 2022, there was $ 3.2 million and $ 5.6 million due from Builders FirstSource, Inc. included in accounts receivable in the accompanying consolidated balance sheets. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 30, 2023 | |
Equity [Abstract] | |
Shareholders' Equity | 16. Shareholders’ Equity 2023 and 2019 Share Repurchase Programs On February 7, 2023, the Company announced that its Board of Directors approved a new, share repurchase program which authorizes the Company to purchase up to $ 250.0 million of its common stock. This program permits the Company to purchase shares of its common stock from time to time through open-market purchases, in privately negotiated transactions, or by other means, including through the use of trading plans intended to qualify under Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, in accordance with applicable securities laws and other restrictions. During the year ended December 30, 2023, we repurchased a total of 3,300,233 shares under this program at a total cost of $ 82.3 million, which excludes the 1 % excise tax imposed on corporate stock buy-backs by the Inflation Reduction Act of 2022. The timing and total amount of stock repurchases will depend upon business, economic and market conditions, corporate and regulatory requirements, prevailing stock prices, and other considerations. The share repurchase program had an initial term of 3 years , through February 3, 2026, and may be suspended or discontinued at any time, and does not obligate the company to acquire any amount of common stock. On May 22, 2019, our Board of Directors authorized and approved a share repurchase program of up to $ 30.0 million. The repurchases may be made in open-market or private transactions from time to time. During the fourth quarter of 2022, we made repurchases of 86,124 shares of our common stock at a total cost of $ 1.6 million under this program. The repurchase program was discontinued. Repurchases of Company Common Stock In addition to the repurchases of our common stock in the open market during 2023 discussed above, during 2023 and 2022, we repurchased 241,290 shares and 95,001 shares, respectively, of our common stock at a total cost of $ 7.2 million and $ 1.9 million, respectively, all relating to purchases from employees to satisfy tax withholding obligations in connection with the vesting of restricted stock awards. Those shares were immediately retired. Shareholder Rights Plan On March 30, 2023, we announced that our Board of Directors had unanimously approved the adoption of a limited-duration shareholder rights plan (the “Rights Plan”) which includes the declaration of a dividend distribution of one right (each, a “Right”) for each outstanding share of the Company’s common stock to stockholders of record as of the close of business on April 10, 2023. Each Right entitles the registered holder to purchase from the Company 0.001 of a share of Series A Participating Preferred Stock, par value $ 0.01 per share, of the Company at an exercise price of $ 90.00 , subject to adjustment. The complete terms of the Rights are set forth in a Rights Agreement, dated as of March 30, 2023, between the Company and American Stock Transfer & Trust Company, LLC, as rights agent (the "Rights Agreement"). The Rights expire on the earliest of (1) March 30, 2024, unless such date is extended, or (2) the redemption or exchange of the Rights as described above. The Board adopted the Rights Plan in response to a likely accumulation of the Company's shares by a strategic investor. The intent of the Rights Plan is to reduce the likelihood that any entity, person or group gains control of the Company through open market accumulation of the Company's shares without paying all other shareholders an appropriate control premium or without providing the Board sufficient time to make informed judgments and take actions that it believes are in the best interests of its other shareholders. Under the Rights Plan, the rights will become exercisable if an entity, person or group acquires beneficial ownership of 10 % or more of the Company's outstanding common stock in a transaction not approved by the Board. In the event that the Rights become exercisable due to the triggering ownership threshold being crossed, each Right will entitle its holder (other than the person, entity or group triggering the Rights Plan, whose Rights will become void and will not be exercisable) to purchase, at the then-current exercise price, additional shares of common stock having a then-current market value of twice the exercise price of the Right. |
Stock Based Compensation
Stock Based Compensation | 12 Months Ended |
Dec. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock Based Compensation | 17. Stock-Based Compensation 2019 Equity Plan On May 22, 2019, our shareholders approved, and we adopted the 2019 Equity and Incentive Compensation Plan (the “2019 Equity Plan”) whereby equity-based awards of up to a total of 1,550,000 shares may be granted by the Board to eligible non-employee directors, selected officers and other employees, advisors and consultants of ours. A summary of certain key features and terms of the 2019 Equity Plan is set forth below. A more complete discussion about the 2019 Equity Plan is set forth in the Company’s proxy statement for its 2019 annual meeting of stockholders, which was filed with the SEC on April 23, 2019. On June 10, 2022, our shareholders approved, and we adopted, the Amended and Restated 2019 Equity and Incentive Compensation Plan (the "Amended and Restated 2019 Equity Plan") which, among other things, increase the total number of shares of common stock available for grant by 3,000,000 shares. A more complete discussion about the Amended and Restated 2019 Equity Plan is set forth in the Company’s proxy statement for its 2019 annual meeting of stockholders, which was filed with the SEC on June April 29, 2022. Amended and Restated 2019 Equity and Incentive Compensation Plan sets forth the total number of shares of common stock available for grant thereunder, at 4,550,000 shares, sets forth the types of awards eligible under the plan, including issuances of options, share appreciation rights, restricted shares, restricted share units, share bonuses, other share-based awards and cash awards, and sets forth the maximum number of shares that may be made subject to awards in any calendar year to any “covered employee” (within the meaning of Section 162(m) of the Internal Revenue Code). shares previously granted under predecessor plans, including the 2014 Equity Plan and the 2006 Equity Plan, may be available for issuance under the 2019 Equity Plan under certain circumstances described below. There were 2,766,235 shares available for grant under the Amended and Restated 2019 Equity Plan at December 30, 2023. Issuances On February 15, 2023, we issued 524,114 shares of restricted stock to certain executive and non-executive employees of the Company, under the Company’s 2023 long-term incentive plan (“2023 LTIP”). The final number of half of the shares awarded under the 2023 LTIP, or 262,057 shares, is subject to adjustment based on the performance of the Company for the 2023 fiscal year and was not final as of December 30, 2023. Additionally, the 262,057 performance shares issued under the 2023 LTIP are subject to a total shareholder return ("TSR") component, which will not be finalized until the third anniversary of the February 15, 2023 grant date. Specifically, 37.5 % of the one-half of the restricted stock awarded in the 2022 LTIP are performance restricted shares which will not be earned unless certain financial performance metrics are met by the Company for the 2023 fiscal year. The performance criteria, as defined in the share awards, provide for a graded awarding of shares based on the percentage by which the Company meets earnings before interest, taxes, depreciation and amortization ("EBITDA") as defined in our 2023 business plan. The percentages, ranging from less than 80 % to greater than or equal to 120 % of the target amount of that EBITDA metric, provide for the awarding of shares ranging from 0 % to 200 % of the target amount of shares with respect to 37.5 % of half of the 524,114 shares, or 98,273 shares. The remaining 62.5 % of the one-half of the restricted stock awarded in the 2022 LTIP, or 163,784 shares, are subject to the same EBITDA metric, but are also subject to a TSR component which stratifies the performance of the Company's common stock price compared to a defined peer group of companies over the three-year period subsequent to February 15, 2023, such that if the Company's TSR falls at the 75th percentile or higher compared to the peer group, grantees will receive an additional 25 % of total company-performance adjusted shares. If the Company's TSR falls at the 25th percentile or lower compared to the peer group, grantees will forfeit 25 % of total company-performance adjusted shares. If the Company's TSR falls within the 75th and 25th percentiles, there will be no additional adjustment and grantees will receive their performance shares as per the EBITDA metric previously discussed. The final award is also affected by forfeitures upon the termination of a grantee’s employment with the Company. The remaining 262,057 shares from the 2023 LTIP are not subject to adjustment based on any performance or other criteria, but rather, vest in three equal installments on each of the first, second and third anniversaries of the grant date, assuming the grantee is employed by the Company on those vesting dates. The grant date fair value of the 2023 LTIP was $ 22.64 per share for those shares not subject to adjustment based on any performance or other criteria except the passage of time, and the 37.5 % of shares subject only to the EBITDA criteria of Company performance. For the 62.5 % of performance shares subject to both the EBITDA criteria of Company performance and the TSR component, the grant date fair value was $ 26.08 per share as determined by a third-party valuation specialist engaged by the Company, which used Monte Carlo simulation techniques to determine the fair value of such shares, which we consider to be a Level 3 input. We record stock compensation expense over an equity award’s vesting period using the award’s fair value at the date of grant. We recorded compensation expense for stock-based awards of $ 12.2 million, $ 9.7 million and $ 7.8 million for the years ended December 30, 2023, December 31, 2022, and January 1, 2022, respectively. Of the $ 12.2 million, $ 9.7 million and $ 7.8 million in stock-based compensation expense in the years ended December 30, 2023, December 31, 2022, and January 1, 2022, respectively, $ 10.5 million, $ 8.2 million and $ 6.4 million, respectively, are classified within selling, general and administrative expense in the accompanying consolidated statements of operations for those years, with the remainder classified within cost of sales. Restricted Share Awards A summary of the status of restricted share awards as of December 30, 2023, and changes during the year then ended, are presented below: Number of Weighted Outstanding at December 31, 2022 1,268,258 $ 18.75 Granted 1,064,169 $ 23.94 Vested ( 767,734 ) $ 18.86 Forfeited/Performance adjustment ( 418,164 ) $ 19.18 Outstanding at December 30, 2023 1,146,529 $ 24.60 As of December 30, 2023, the remaining compensation cost related to non-vested share awards was $ 18.9 million which is expected to be recognized in earnings using an accelerated method resulting in higher levels of compensation costs occurring in earlier periods over a weighted average period of 2.1 years. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 30, 2023 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | 18. Accumulated Other Comprehensive Income (Loss) The following table shows the components of accumulated other comprehensive income (loss) for the years ended December 30, 2023, December 31, 2022, and January 1, 2022: Aluminum Forward MTP (in thousands) Contracts Contracts Total Accumulated other comprehensive income at January 2, 2021 $ 2,403 $ 317 $ 2,720 Change in fair value of derivatives 14,012 10,443 24,455 Amounts reclassified from accumulated other comprehensive earnings ( 12,373 ) ( 6,265 ) ( 18,638 ) Tax effect ( 432 ) ( 1,099 ) ( 1,531 ) Net current-period other comprehensive income 1,207 3,079 4,286 Accumulated other comprehensive income at January 1, 2022 $ 3,610 $ 3,396 $ 7,006 Accumulated other comprehensive income at January 1, 2022 $ 3,610 $ 3,396 $ 7,006 Change in fair value of derivatives ( 7,732 ) 42 ( 7,690 ) Amounts reclassified from accumulated other comprehensive earnings 2,903 ( 4,341 ) ( 1,438 ) Tax effect 1,219 1,126 2,345 Net current-period other comprehensive loss ( 3,610 ) ( 3,173 ) ( 6,783 ) Accumulated other comprehensive income at December 31, 2022 $ - $ 223 $ 223 Accumulated other comprehensive income at December 31, 2022 $ - $ 223 $ 223 Change in fair value of derivatives ( 361 ) ( 94 ) ( 455 ) Amounts reclassified from accumulated other comprehensive earnings 618 ( 206 ) 412 Tax effect ( 66 ) 77 11 Net current-period other comprehensive loss 191 ( 223 ) ( 32 ) Accumulated other comprehensive income at December 30, 2023 $ 191 $ - $ 191 |
Segments
Segments | 12 Months Ended |
Dec. 30, 2023 | |
Segment Reporting [Abstract] | |
Segments | 19. Segments We have two reportable segments: the Southeast segment, and the Western segment. The Southeast reporting segment, which is also an operating segment, is composed of sales from our manufacturing facilities in Florida. The Western reporting segment, also an operating segment, is composed of sales from our manufacturing facilities in Arizona, California and Utah. Centralized financial and operational oversight, including resource allocation and assessment of performance on an income (loss) from operations basis, is performed by our CEO, whom we have determined to be our chief operating decision maker (“CODM”), with oversight by the Board of Directors. The following table represents summary financial data attributable to our operating segments for the years ended December 30, 2023, December 31, 2022, and January 1, 2022. Results of the Southeast segment for the year ended January 1, 2022 includes the results of Eco for its post-acquisition period from February 1, 2021. Results of the Western segment for the year ended December 31, 2022 includes the results of Martin for its post-acquisition period from October 14, 2022, and for the year ended January 1, 2022, includes the results of Anlin for its post-acquisition period from October 25, 2021. Corporate overhead has been allocated to each segment using an allocation method we believe is reasonable (in thousands): Year Ended December 30, December 31, January 1, 2023 2022 2022 Net sales: Southeast segment $ 1,130,394 $ 1,110,355 $ 968,693 Western segment 373,847 381,599 192,771 Total net sales $ 1,504,241 $ 1,491,954 $ 1,161,464 Income from operations: Southeast segment $ 137,150 $ 112,593 $ 74,815 Western segment 49,298 55,190 25,641 Impairment of trade name (1) ( 5,500 ) ( 7,423 ) — Restructuring costs and charges, net (2) ( 1,722 ) — — Total income from operations 179,226 160,360 100,456 Interest expense, net 31,077 28,879 30,029 Debt extinguishment costs - 410 25,472 Total income before income taxes $ 148,149 $ 131,071 $ 44,955 (1) In 2023, impairment to our Martin trade name, which is part of our Western segment. In 2022, impairment relates to our WinDoor trade name, which is part of our Southeast segment. (2) Restructuring costs and charges, net, relates to our NewSouth brand, which is part of our Southeast segment. Depreciation expense for the years ended December 30, 2023, December 31, 2022, and January 1, 2022, was $ 27.9 million, $ 27.4 million, and $ 26.5 million for our Southeast segment, respectively, and $ 8.1 million, $ 6.7 million, and $ 4.0 million for our Western segment, respectively. Amortization expense for the years ended December 30, 2023, December 31, 2022, and January 1, 2022, was $ 7.9 million, $ 10.1 million, and $ 10.7 million for our Southeast segment, respectively, and $ 18.4 million, $ 16.0 million, and $ 10.4 million for our Western segment, respectively. Total assets of our Southeast segment as of December 30, 2023 and December 31, 2022 were $ 899.7 million and $ 909.6 million, respectively. Total assets of our Western segment as of December 30, 2023 and December 31, 2022 were $ 678.2 million and $ 730.6 million, respectively. |
Redeemable Non-Controlling Inte
Redeemable Non-Controlling Interest | 12 Months Ended |
Dec. 30, 2023 | |
Noncontrolling Interest [Abstract] | |
Redeemable Non-Controlling Interest | 20. Redeemable Non-Controlling Interest On February 1, 2021, we completed an acquisition of a 75 % ownership stake in Eco. The seller of Eco obtained the remaining equity interest in the newly formed company, Eco Enterprises. The seller’s redeemable non-controlling interest ("RNCI") was initially established at fair value. The agreement between PGT Innovations, Inc. and the seller provided the Company with a call right for seller’s equity interest during the third year following the acquisition date . If the Company did not exercise its right to call by the third anniversary, the agreement provided the seller with a put right which could have been exercised during the 15 -day period following the third anniversary. Effective on May 26, 2023, the Company exercised its call-right to purchase the remaining 25 % ownership stake in Eco it previously did not own. The redemption price of the remaining 25 % was calculated by the Company pursuant to the operating agreement based on the performance metric included therein, and was determined to be $ 37.5 million, which was agreed with by the seller. Subsequent to this redemption, the Company's ownership of Eco Enterprises is now 100 % . Prior to the redemption effective on May 26, 2023, the Company calculated the estimated future redemption value of the non-controlling interest on a quarterly basis. The redeemable non-controlling interest was accreted to the future redemption value using the effective interest method up to the date on which the put-right became effective. Any accretion adjustment in the current reporting period of the redeemable non-controlling interest was offset against retained earnings and impacted earnings used in the calculation of earnings per share attributable to common shareholders in the reporting period. The following table presents the changes in the Company’s redeemable non-controlling interest for the period presented: Year Ended December 30, December 31, (in thousands) 2023 2022 Balance at beginning of year $ 34,721 $ 36,863 Net income attributable to RNCI 1,101 1,523 Change in value of RNCI 1,637 ( 2,000 ) Distribution to non-controlling interest — ( 1,665 ) Redemption of RNCI ( 37,459 ) — Balance at end of year $ — $ 34,721 |
Restructuring Costs and Charges
Restructuring Costs and Charges, Net | 12 Months Ended |
Dec. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Costs and Charges, Net | 21. Restructuring Costs and Charges, Net During the second quarter of 2023, the Company’s management approved a plan to exit the North Carolina market relating to its NewSouth brand. As a result of this decision, the Company determined to close its NewSouth showrooms in Raleigh-Durham and Charlotte, North Carolina, which resulted in restructuring costs and charges, net, totaling $ 1.7 million in 2023, which includes a gain of $ 0.8 million relating to the forgiveness of a portion of the operating lease liability by the landlord of the Charlotte, NC location, which we satisfied in the third quarter of 2023. Of the $ 1.7 million, after consideration of the lease liability forgiveness, restructuring costs and charges, net, includes $ 2.0 million of total impairments of the right-of-use assets of the leases of the Raleigh-Durham and Charlotte, North Carolina showroom facilities, and $ 0.4 relating to write-offs of the related leasehold improvements. The remainder represents personnel-related costs, which were paid in 2023. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 30, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Event | 22. Subsequent Event MITER Merger Agreement On January 17, 2024, the Company and MITER Brands (“MITER”), a nationwide manufacturer of precision-built windows and doors, announced they entered into a definitive merger agreement for MITER to acquire all of the Company's outstanding shares at a price of $ 42.00 per share in cash, or an enterprise value of approximately $ 3.1 billion. The purchase price represents a premium of 60 % the Company's unaffected closing share price on October 9, 2023, the last trading day prior to the public disclosure of a proposal for the acquisition of the Company. The merger agreement has been unanimously approved by the boards of directors of both companies. The transaction is expected to be financed in part by an equity investment from Koch Equity Development LLC, the principal investment and acquisition arm of Koch Industries, Inc., and a current investor in MITER. The Company also announced that it had terminated its merger agreement with Masonite International Corp. (“Masonite”) dated December 17, 2023. MITER and the Company entered into their agreement after the Company's Board unanimously determined that MITER’s proposal constituted a “Superior Proposal” as defined in its merger agreement with Masonite, dated December 17, 2023. We notified Masonite of our determination on January 16, 2024, and Masonite waived its right to improve the terms of its offer. In accordance with our merger agreement with Masonite, concurrent with the signing of the definitive merger agreement with MITER, we terminated our merger agreement with Masonite and MITER, on behalf of the Company, paid the termination fee of $ 84.0 million due to Masonite. MITER’s transaction with the Company is expected to close by mid-year 2024, subject to approval by the shareholders of the Company, regulatory approval, including satisfaction of the antitrust provisions of the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the “HSR Act”), and customary closing conditions. The 30-day waiting period under the HSR Act, in connection with the Merger expired at 11:59 p.m. on February 22, 2024. The expiration of the HSR Act waiting period satisfies one of the conditions to the closing of the Merger. MITER has obtained commitment letters for the financing necessary to complete the transaction, which is not subject to a financing condition. Upon completion of the transaction, the Company will become a privately held subsidiary of MITER and its common stock will no longer be traded on the New York Stock Exchange. The accompanying financial statements have been prepared under the assumption that the Company will continue as a going concern, and no adjustments have been made to reflect the effects, if any, from entering into the aforementioned merger agreement with MITER. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 30, 2023 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | (2) Schedule II – Valuation and Qualifying Accounts Balance at Balance at Beginning Costs and End of Allowance for Doubtful Accounts of Period expenses Deductions* Period (in thousands) Year ended December 30, 2023 $ 13,656 $ 3,132 $ ( 2,610 ) $ 14,178 Year ended December 31, 2022 $ 4,702 $ 10,979 $ ( 2,025 ) $ 13,656 Year ended January 1, 2022 $ 3,716 $ 3,834 $ ( 2,848 ) $ 4,702 * Represents uncollectible accounts charged against the allowance for doubtful accounts, net of recoveries. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). |
Fiscal period | Fiscal period Our fiscal year consists of 52 or 53 weeks ending on the Saturday nearest December 31 of the related year. The years ended December 30, 2023, December 31, 2022, and January 1, 2022, consisted of 52 weeks. |
Principles of consolidation | Principles of consolidation The consolidated financial statements present the results of the operations, financial position and cash flows of PGTI, and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. We consolidate all wholly owned subsidiaries. |
Segment information | Segment information We operate as two segments based on geography: the Southeast segment and the Western segment. See Note 19 for more information. |
Use of estimates | Use of estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could materially differ from those estimates. |
Revenue recognition | Revenue Recognition Accounting Policy The Company primarily manufactures fully customized windows and doors based on design specifications, measurements, colors, finishes, framing materials, glass-types, and other options selected by the customer at the point in time an order is received. The Company has an enforceable right to payment at the time an order is received and accepted at the agreed-upon sales prices contained in our agreements with our customers for all manufacturing efforts expended on behalf of its customers. Due to the customized build-to-order nature of these products, the Company’s assessment is that the substantial portion of its finished goods and certain unused glass components have no alternative use, and that control of these products and components passes to the customer over time during the manufacturing of the products in an order, or upon our receipt of certain pre-cut glass components from our supplier attributed to specific customer orders. We give our customers 30-day payment terms, which is typical in our industry. Based on these factors, the Company recognizes a substantial portion of revenue over time during the manufacturing process once customization begins, generally based on the cost of material and labor inputs to the manufacturing process, and for certain unused glass components on hand, at the end of a reporting period. Revenue on work-in-process at the end of a reporting period is recognized in proportion to costs incurred to total estimated cost of the product being manufactured. Except for the Western segment’s volume products, discussed in the section titled Disaggregation of Revenue from Contracts with Customers below, revenue recognized at a point in time is immaterial. |
Cost of sales | Cost of sales Cost of sales represents costs directly related to the production of our products. Primary costs include raw materials, direct labor, and manufacturing overhead, which consist of salaries, wages, employee benefits, utilities, maintenance, lease costs and depreciation. |
Shipping and handling costs | Shipping and handling costs Shipping and handling costs incurred in the purchase of materials used in the manufacturing process are included in cost of sales. Costs relating to shipping, handling and distribution of finished products to our customers are included in selling, general and administrative expenses and totaled $ 69.7 million, $ 75.1 million and $ 62.4 million for the years ended December 30, 2023, December 31, 2022, and January 1, 2022, respectively. |
Advertising | Advertising We expense advertising costs as incurred. Advertising expense, which is included in selling, general and administrative expenses, was $ 29.3 million, $ 22.7 million and $ 15.8 million for the years ended December 30, 2023, December 31, 2022, and January 1, 2022, respectively. |
Research and development costs | Research and development costs We expense research and development costs as incurred. Research and development costs in the years ended December 30, 2023, December 31, 2022, and January 1, 2022, were not material. |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents consist of cash on hand or highly liquid investments with an original maturity date of three months or less when purchased. |
Accounts receivable, net | Accounts receivable, net In the ordinary course of business, we extend credit to qualified dealers and distributors, generally on a non-collateralized basis. The Company maintains an allowance for credit losses which is based on management’s assessments of the amount which may become uncollectible in the future and is determined through consideration of our write-off history, specific identification of uncollectible accounts based in part on the customer’s past due balance (based on contractual terms), and consideration of prevailing economic and industry conditions. Uncollectible accounts are written off after repeated attempts to collect from the customer have been unsuccessful. December 30, December 31, 2023 2022 (in thousands) Accounts receivable $ 131,795 $ 173,763 Less: Allowance for credit losses ( 14,178 ) ( 13,656 ) Accounts receivable, net $ 117,617 $ 160,107 |
Self-insurance reserves | Self-insurance reserves We are primarily self-insured for employee health benefits and workers’ compensation claims prior to 2010 and after 2017. Provisions for losses under these programs are recorded based on the Company’s estimates of the aggregate liabilities for the claims incurred. Accruals for healthcare claims and workers’ compensation are included in accrued liabilities in the accompanying consolidated balance sheets. |
Warranty expense | Warranty expense We have warranty obligations with respect to most of our manufactured products. Warranty periods, which vary by product components, generally range from 1 to 10 years , although the warranty period for a limited number of specifically identified components in certain applications is a lifetime. However, the majority of the products sold have warranties on components which range from 1 to 3 years . The Company has recorded a reserve for estimated warranty and related costs based on historical experience and periodically adjusts these provisions to reflect actual experience. During 2023, we recorded warranty expense at an average rate of 2.4 % of sales, compared to 2.1 % of sales recorded in 2022 and 2.0 % of sales recorded in 2021. The increase in our warranty expense rate in 2023, compared to 2022 was a result of servicing a higher number of overall warranty claims in 2023, resulting in a higher level of service warranty expense, whereas the rate in 2022 was lower on average as there was a decrease in the use of higher-cost contract labor. We assess the adequacy of our warranty accrual on a quarterly basis, and adjust the previous amounts recorded, if necessary, to reflect the change in estimate of the future costs of claims yet to be serviced. The following provides information with respect to our warranty accrual. Accrued Warranty Beginning of Acquired (Acquisition Charged to Adjustments Settlements End of (in thousands) Year ended December 30, 2023 $ 15,388 $ - $ 36,261 $ ( 285 ) $ ( 36,128 ) $ 15,236 Year ended December 31, 2022 $ 13,504 $ ( 2,537 ) $ 31,223 $ 698 $ ( 27,500 ) $ 15,388 Year ended January 1, 2022 $ 8,001 $ 4,150 $ 23,637 $ ( 1,440 ) $ ( 20,844 ) $ 13,504 During the third quarter of 2022, we finalized our calculation of the reserve for warranty obligations assumed in the Anlin Acquisition. As a result, we recorded an acquisition adjustment to decrease Anlin's warranty reserve by $ 2.5 million from its initial estimate in our then preliminary allocation of the fair value of assets acquired and liabilities assumed, resulting in an equal decrease in goodwill. In 2021, we assumed warranty reserves totaling $ 4.2 million in our acquisitions of Anlin and ECO. The accrual for warranty is included in accrued liabilities and other liabilities, depending on estimated settlement date, in the consolidated balance sheets as of December 30, 2023 and December 31, 2022. The portion of warranty expense related to the issuance of product of $ 3.2 million, $ 3.9 million and $ 3.0 million is included in cost of sales in the consolidated statements of operations for the years ended December 30, 2023, December 31, 2022, and January 1, 2022, respectively. The portion related to servicing warranty claims including costs of the service department personnel is included in selling, general and administrative expenses in the consolidated statements of operations, and is $ 32.8 million, $ 28.1 million and $ 19.2 million, respectively, for the years ended December 30, 2023, December 31, 2022, and January 1, 2022. |
Inventories | Inventories Inventories consist principally of raw materials purchased for the manufacture of our products. We have limited work-in-progress and finished goods inventory as most products are custom, made-to-order products manufactured under noncancelable purchase orders and therefore are recognized as costs of sales relating to revenue recognized over time during the manufacturing process. All inventories are stated at the lower of cost (first-in, first-out method) or net realizable value. The reserve for obsolescence, which was immaterial at December 30, 2023 and December 31, 2022, is based on management’s assessment of the amount of inventory that may become obsolete in the future and is determined through Company history, specific identification and consideration of prevailing economic and industry conditions. Inventories consist of the following: December 30, December 31, 2023 2022 (in thousands) Raw materials $ 108,796 $ 109,679 Work in progress 1,771 916 Finished goods 1,214 2,077 Inventories $ 111,781 $ 112,672 |
Property, plant and equipment | Property, plant and equipment Property, plant and equipment are recorded at cost and depreciated using the straight-line method over the estimated useful lives of the related assets. Depreciable assets are assigned estimated lives as follows: Building and improvements 5 to 40 years Leasehold improvements Shorter of lease term or estimated useful life Furniture and equipment 3 to 10 years Vehicles 5 to 10 years Computer software 3 years Maintenance and repair expenditures are charged to expense as incurred. |
Leases | Leases We determine if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use assets, current portion of operating lease liability, and operating lease liability, less current portion, on our consolidated balance sheets. The Company currently does not have any finance leases. Operating lease right-of-use assets and operating lease liabilities are recognized based on the present value of lease payments over the lease term at commencement date. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. The operating lease right-of-use asset also includes any up-front lease payments made and initial direct costs incurred, less lease incentives received. Our lease terms may include options to extend or terminate the lease. Lease expense is recognized on a straight-line basis over the lease term. We elected the practical expedient to not separate lease and non-lease components for all classes of underlying assets. |
Long-lived assets | Long-lived assets We review long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of long-lived assets to future undiscounted net cash flows expected to be generated . If such assets are considered to be impaired, the impairment recognized is the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less cost to sell, and depreciation is no longer recorded. |
Computer software | Computer software We capitalize costs associated with software developed or obtained for internal use when both the preliminary project stage is complete, and it is probable that computer software being developed will be completed and placed in service. Capitalized costs include: (i) external direct costs of materials and services consumed in developing or obtaining computer software, (ii) payroll and other related costs for employees who are directly associated with and who devote time to the software project, and (iii) interest costs incurred, when material, while developing internal-use software. Capitalization of such costs ceases no later than the point at which the project is substantially complete and ready for its intended purpose. Capitalized software as of December 30, 2023, and December 31, 2022, was $ 32.3 million and $ 31.7 million, respectively. Accumulated depreciation of capitalized software was $ 32.0 million and $ 30.3 million as of December 30, 2023, and December 31, 2022, respectively. Amortization expense for capitalized software was $ 1.7 million, $ 3.0 million, and $ 3.7 million for the years ended December 30, 2023, December 31, 2022, and January 1, 2022, respectively. We review the carrying value of capitalized software and development costs for impairment in accordance with our policy pertaining to the impairment of long-lived assets. |
Goodwill | Goodwill Goodwill is calculated as the excess of the consideration paid in a business combination over the fair value of the identifiable net assets acquired. We test goodwill for impairment at the reporting unit level at least annually or whenever events or circumstances indicate that the carrying value of goodwill may not be recoverable. Our annual test for impairment is done on the first date of our fiscal fourth quarter. We consider various qualitative factors, including macroeconomic and industry conditions, financial performance of the Company and changes in the stock price of the Company to determine whether it is necessary to perform a quantitative test for goodwill impairment. If we believe, as a result of our qualitative assessment, that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the quantitative impairment test is required. Under the quantitative test, goodwill is tested under a one-step method for impairment at a level of reporting referred to as a reporting unit. This quantitative analysis involves identifying potential impairment by comparing the fair value of each reporting unit with its carrying amount and, if the carrying amount of a reporting unit exceeds its fair value, then a charge for goodwill impairment will be recognized in the amount by which a reporting unit’s carrying value exceeds its fair value. For our Southeast and Western reporting units, based on qualitative assessments, we concluded that quantitative assessments were not required to be performed. See Note 7 for further discussion of the goodwill of our reporting units. |
Trade names | Trade names The Company has indefinite-lived intangible assets in the form of certain trade names. The impairment evaluation of the carrying amount of our indefinite-lived trade names is conducted annually, or more frequently, if events or changes in circumstances indicate that they might be impaired. We have the option of performing a qualitative assessment of impairment to determine whether any further quantitative testing for impairment is necessary. If we elect to bypass the qualitative assessment or if we determine, based on qualitative factors, that it is more likely than not that the fair value of our indefinite-lived trade names is less than the carrying amount, an evaluation is performed by comparing their carrying amount to their estimated fair values. If the estimated fair value is less than the carrying amount of the indefinite-lived trade name, then an impairment charge is recorded to reduce the carrying value to its estimated fair value. The estimated fair value is determined using the relief from royalty method that is based upon the discounted projected cost savings (value) attributable to ownership of our trade names, our only indefinite-lived intangible assets. Other than the Martin trade name, based on qualitative assessments for 2023, the Company concluded it was more likely than not the fair value of the indefinite-lived intangible assets exceeded their carrying values. For the Martin trade name, we concluded that a quantitative assessment was required, given the post-acquisition sales levels were below those used in its initial valuation, which resulted in an impairment charge of $ 5.5 million in the year ended December 30, 2023. We review the carrying value of our finite-lived trade name in accordance with our policy for long-lived assets. See Note 7 for further discussion of our trade names. |
Derivative financial instruments | Derivative financial instruments We utilize certain derivative instruments, from time to time, including forward contracts to manage variability in cash flow associated with commodity market price risk exposure in the aluminum market. We do not enter into derivatives for speculative purposes. |
Concentrations of credit risk | Concentrations of credit risk Financial instruments, which potentially subject us to concentrations of credit risk, consist principally of cash and cash equivalents, trade accounts receivable and contract assets. Accounts receivable and contract assets are due primarily from dealers and distributors of building materials, and other companies in the construction industry, primarily located in Florida, California, Texas, Arizona and Utah. Credit is extended based on an evaluation of the customer’s financial condition and credit history, and generally collateral is not required. The Company maintains an allowance for potential credit losses on trade receivables and contract assets. We maintain our cash with several financial institutions, the balance of which exceeds federally insured limits. At December 30, 2023 and December 31, 2022, our cash balance exceeded the insured limit by $ 29.8 million and $ 61.4 million, respectively. |
Comprehensive income (loss) | Comprehensive income (loss) The Company reports comprehensive income (loss), defined as the total of net income and other comprehensive income (loss), which is composed of all other non-owner changes in equity, and the components thereof, in its consolidated statements of comprehensive income. The components of other comprehensive income (loss) relate to gains and losses on cash flow hedges. Reclassification adjustments reflecting such gains and losses are recorded as income in the same period as the hedged items affect earnings. |
Stock-based compensation | Stock-based compensation We use a fair-value based approach for measuring stock-based compensation and record compensation expense over an award’s vesting period based on the award’s fair value at the date of grant. Our Company’s awards vest based on service conditions and certain performance conditions and compensation expense is recognized generally on a straight-line basis for each separately vesting portion of an award. Stock-based compensation expense is recognized only for those awards that ultimately vest. |
Income and Sales Taxes | Income and Sales Taxes We account for income taxes utilizing the liability method. Deferred income taxes are recorded to reflect consequences on future years of differences between financial reporting and the tax basis of assets and liabilities measured using the enacted statutory tax rates and tax laws applicable to the periods in which differences are expected to affect taxable earnings. We have no liability for unrecognized tax benefits. However, should we accrue for such liabilities, when and if they arise in the future, we will recognize interest and penalties associated with uncertain tax positions as part of our income tax provision. Income taxes relating to gains and losses on our cash flow hedges are released at the same time as the underlying transactions are realized. Interest and penalties on income taxes, if any, are recorded as income taxes. Refer to Note 12 for additional information regarding the Company’s income taxes. Sales taxes collected from customers have been recorded on a net basis. |
Net income per common share | Net income per common share Basic earnings per share (“EPS”) attributable to PGT Innovations, Inc. common stockholders for the years ended December 30, 2023, December 31, 2022 and January 1, 2022 is computed using the two-class method by dividing net income attributable to common shareholders, after deducting the redemption adjustment related to the redeemable noncontrolling interest, by the average number of common shares outstanding during the period. Diluted EPS attributable to PGT Innovations, Inc. common stockholders for the years ended December 30, 2023, December 31, 2022 and January 1, 2022, is computed using the two-class method by dividing net income attributable to common shareholders, after deducting the redemption adjustment related to the redeemable noncontrolling interest, by the average number of common shares outstanding, including the dilutive effect of common stock equivalents computed using the treasury stock method and the average share price during the period Anti-dilutive securities were insignificant for the years ended December 30, 2023 and December 31, 2022. The table below presents the calculation of basic and diluted earnings per share, including a reconciliation of weighted average common shares: Year Ended December 30, December 31, January 1, 2023 2022 2022 (in thousands, except per share amounts) Net income $ 110,139 $ 98,405 $ 35,196 Less: Net income attributable to RNCI ( 1,101 ) ( 1,523 ) ( 2,318 ) Net income attributable to the Company 109,038 96,882 32,878 Change in redemption value of RNCI ( 1,637 ) 2,000 ( 6,081 ) Net income attributable to common shareholders $ 107,401 $ 98,882 $ 26,797 Weighted-average common shares - Basic 58,363 59,926 59,518 Add: Dilutive shares from equity plans 337 393 540 Weighted-average common shares - Diluted 58,700 60,319 60,058 Weighted average number of common shares outstanding: Basic $ 1.84 $ 1.65 $ 0.45 Diluted $ 1.83 $ 1.64 $ 0.45 |
Supplemental cash flow information and non-cash activity | Supplemental cash flow information and non-cash activity The table below presents supplemental cash flow information and non-cash activity for the years ended December 30, 2023, December 31, 2022, and January 1, 2022: Year Ended December 30, December 31, January 1, (in thousands) 2023 2022 2022 Supplemental cash flow information: Interest paid (net of interest income) $ 30,246 $ 27,948 $ 32,636 Income tax payments, net of refunds $ 40,617 $ 21,499 $ 12,166 Non-cash activity: Establish right-of-use asset $ 44,424 $ 29,031 $ 65,678 Establish operating lease liability $ ( 44,424 ) $ ( 29,031 ) $ ( 65,678 ) Property, plant and equipment additions in accounts payable $ 387 $ 565 $ 772 |
Accounting Pronouncements Recently Adopted | Accounting Pronouncements Recently Adopted Disclosure of Supplier Finance Program Obligations In September 2022, the FASB issued ASU 2022-04, “Supplier Finance Programs: Disclosure of Supplier Finance Program Obligations,” to improve the disclosures of supplier finance programs. Specifically, the ASU requires disclosure of key terms of the supplier finance programs and a rollforward of the related obligations. The amendments in this ASU do not affect the recognition, measurement, or financial statement presentation of obligations covered by supplier finance programs. The ASU was effective for us for fiscal years, and interim periods within those years, beginning after December 15, 2022, except for the amendment on rollforward information, which was effective for fiscal years beginning after December 15, 2023. Early adoption was permitted. The Company does not engage in supplier finance programs and, therefore, did not add any incremental disclosures required by ASU 2022-04. Accounting Pronouncements Recently Issued, Not Yet Adopted Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures In November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update (ASU) No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires a public entity to disclose significant segment expenses and other segment items on an annual and interim basis and provide in interim periods all disclosures about a reportable segment’s profit or loss and assets that are currently required annually. Additionally, it requires a public entity to disclose the title and position of the Chief Operating Decision Maker (CODM). The ASU does not change how a public entity identifies its operating segments, aggregates them, or applies the quantitative thresholds to determine its reportable segments. The new standard is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. A public entity should apply the amendments in this ASU retrospectively to all prior periods presented in the financial statements. We expect this ASU to only impact our disclosures with no impacts to our results of operations, cash flows and financial condition. Income Taxes (Topic 740) - Improvements to Income Tax Disclosures In December 2023, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2023-09, “Income Taxes - Improvements to Income Tax Disclosures” requiring enhancements and further transparency to certain income tax disclosures, most notably the tax rate reconciliation and income taxes paid. This ASU is effective for fiscal years beginning after December 15, 2024 on a prospective basis and retrospective application is permitted. We are currently evaluating the impact of the adoption of this standard. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Accounts, Notes Receivable and Allowance for Doubtful Accounts | December 30, December 31, 2023 2022 (in thousands) Accounts receivable $ 131,795 $ 173,763 Less: Allowance for credit losses ( 14,178 ) ( 13,656 ) Accounts receivable, net $ 117,617 $ 160,107 |
Information Regarding Warranty Accrual | The following provides information with respect to our warranty accrual. Accrued Warranty Beginning of Acquired (Acquisition Charged to Adjustments Settlements End of (in thousands) Year ended December 30, 2023 $ 15,388 $ - $ 36,261 $ ( 285 ) $ ( 36,128 ) $ 15,236 Year ended December 31, 2022 $ 13,504 $ ( 2,537 ) $ 31,223 $ 698 $ ( 27,500 ) $ 15,388 Year ended January 1, 2022 $ 8,001 $ 4,150 $ 23,637 $ ( 1,440 ) $ ( 20,844 ) $ 13,504 During the third quarter of 2022, we finalized our calculation of the reserve for warranty obligations assumed in the Anlin Acquisition. As a result, we recorded an acquisition adjustment to decrease Anlin's warranty reserve by $ 2.5 million from its initial estimate in our then preliminary allocation of the fair value of assets acquired and liabilities assumed, resulting in an equal decrease in goodwill. In 2021, we assumed warranty reserves totaling $ 4.2 million in our acquisitions of Anlin and ECO. |
Inventories | Inventories consist of the following: December 30, December 31, 2023 2022 (in thousands) Raw materials $ 108,796 $ 109,679 Work in progress 1,771 916 Finished goods 1,214 2,077 Inventories $ 111,781 $ 112,672 |
Schedule of Property, Plant and Equipment | Property, plant and equipment are recorded at cost and depreciated using the straight-line method over the estimated useful lives of the related assets. Depreciable assets are assigned estimated lives as follows: Building and improvements 5 to 40 years Leasehold improvements Shorter of lease term or estimated useful life Furniture and equipment 3 to 10 years Vehicles 5 to 10 years Computer software 3 years |
Calculation of EPS and Reconciliation of Weighted Average Common Shares Used in the Calculation of Basic and Diluted EPS | The table below presents the calculation of basic and diluted earnings per share, including a reconciliation of weighted average common shares: Year Ended December 30, December 31, January 1, 2023 2022 2022 (in thousands, except per share amounts) Net income $ 110,139 $ 98,405 $ 35,196 Less: Net income attributable to RNCI ( 1,101 ) ( 1,523 ) ( 2,318 ) Net income attributable to the Company 109,038 96,882 32,878 Change in redemption value of RNCI ( 1,637 ) 2,000 ( 6,081 ) Net income attributable to common shareholders $ 107,401 $ 98,882 $ 26,797 Weighted-average common shares - Basic 58,363 59,926 59,518 Add: Dilutive shares from equity plans 337 393 540 Weighted-average common shares - Diluted 58,700 60,319 60,058 Weighted average number of common shares outstanding: Basic $ 1.84 $ 1.65 $ 0.45 Diluted $ 1.83 $ 1.64 $ 0.45 |
Schedule of Supplemental Cash Flow Information and Non-Cash Activity | The table below presents supplemental cash flow information and non-cash activity for the years ended December 30, 2023, December 31, 2022, and January 1, 2022: Year Ended December 30, December 31, January 1, (in thousands) 2023 2022 2022 Supplemental cash flow information: Interest paid (net of interest income) $ 30,246 $ 27,948 $ 32,636 Income tax payments, net of refunds $ 40,617 $ 21,499 $ 12,166 Non-cash activity: Establish right-of-use asset $ 44,424 $ 29,031 $ 65,678 Establish operating lease liability $ ( 44,424 ) $ ( 29,031 ) $ ( 65,678 ) Property, plant and equipment additions in accounts payable $ 387 $ 565 $ 772 |
Revenue Recognition and Contr_2
Revenue Recognition and Contracts with Customers (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Net Sales by Reporting Segment, Product Category and Market | The following table provides information about our net sales by reporting segment and product category for the years ended December 30, 2023, December 31, 2022, and January 1, 2022 (in millions): Year Ended December 30, December 31, January 1, Disaggregation of revenue: 2023 2022 2022 Reporting segment: Southeast $ 1,130.4 $ 1,110.4 $ 968.7 Western 373.8 381.6 192.8 Total net sales $ 1,504.2 $ 1,492.0 $ 1,161.5 Product category: Impact-resistant window and door products $ 926.3 $ 878.8 $ 787.2 Non-impact window and door products 577.9 613.2 374.3 Total net sales $ 1,504.2 $ 1,492.0 $ 1,161.5 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Business Combinations [Abstract] | |
Schedule of Fair Value of Assets and Liabilities Assumed | The fair value of assets acquired, and liabilities assumed as of the closing date, are as follows: Initial Adjustments to Final Accounts receivable $ 6,653 $ ( 194 ) $ 6,459 Inventories 9,543 ( 364 ) 9,179 Contract assets, net 5,242 — 5,242 Prepaid expenses and other assets 90 — 90 Property and equipment 11,422 ( 1,196 ) 10,226 Operating lease right-of-use asset 12,259 — 12,259 Intangible assets 91,900 — 91,900 Total assets acquired 137,109 ( 1,754 ) 135,355 Accounts payable ( 2,482 ) — ( 2,482 ) Accrued and other liabilities ( 1,270 ) 283 ( 987 ) Deferred tax liabilities ( 23,604 ) — ( 23,604 ) Operating lease liability ( 12,259 ) — ( 12,259 ) Total liabilities assumed ( 39,615 ) 283 ( 39,332 ) Net assets acquired 97,494 ( 1,471 ) 96,023 Goodwill 90,300 2,215 92,515 Fair value of consideration transferred $ 187,794 $ 744 $ 188,538 Consideration: Cash $ 187,794 $ 744 $ 188,538 Fair value of consideration transferred $ 187,794 $ 744 $ 188,538 |
Schedule for Valuation of Identifiable Intangible Assets Acquired and Estimate of Useful Lives | The valuation of the identifiable intangible assets acquired in the Martin Acquisition and our estimate of their respective useful lives are as follows: Initial Final Useful Life Valuation (in years) (in thousands) Trade name $ 24,000 indefinite Customer relationships 52,700 15 Customer-related backlog (amortized in 2022) 400 < 1 Developed technology 14,600 3 - 14 Non-compete-related intangible 200 5 Intangible assets, net $ 91,900 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | The following table presents the composition of property, plant and equipment as of: December 30, December 31, 2023 2022 (in thousands) Land $ 10,563 $ 10,563 Buildings and improvements 114,506 108,629 Machinery and equipment 195,223 185,229 Vehicles 26,462 24,975 Software 32,286 31,729 Construction in progress 69,069 33,628 Property, plant and equipment 448,109 394,753 Less: Accumulated depreciation ( 209,983 ) ( 186,399 ) Property, plant and equipment, net $ 238,126 $ 208,354 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill and Intangible Assets Net | Goodwill and intangible assets are as follows as of: Initial December 30, December 31, WA Useful Life 2023 2022 (in years) (in thousands) Goodwill $ 462,630 $ 460,415 indefinite Other intangible assets: Trade names (indefinite-lived) $ 219,518 $ 225,018 indefinite Customer relationships and customer-related assets 340,047 340,047 < 1 - 15 Trade name (amortizable) 22,200 22,200 15 Developed technology 20,500 20,500 3 - 14 Non-compete agreements 3,538 3,538 2 - 5 Software license 590 590 2 Total amortizable intangibles 386,875 386,875 13 Less: Accumulated amortization ( 191,148 ) ( 164,841 ) Total amortizable intangibles, net 195,727 222,034 Other intangible assets, net $ 415,245 $ 447,052 Goodwill at December 31, 2022 $ 460,415 Increase from Martin Acquisition net working capital payment 744 Net other measurement period changes in Martin Acquisition 1,471 Goodwill at December 30, 2023 $ 462,630 Trade names (indefinite-lived) at December 31, 2022 $ 225,018 Decrease due to impairment of Martin trade name ( 5,500 ) Trade names (indefinite-lived) at December 30, 2023 $ 219,518 |
Estimated Amortization for Future Fiscal Year | Estimated amortization of our amortizable intangible assets is as follows for future fiscal years: (in thousands) Total 2024 $ 25,971 2025 25,640 2026 21,241 2027 20,987 2028 16,771 Thereafter 85,117 Total $ 195,727 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consisted of the following as of: December 30, December 31, 2023 2022 Accrued liabilities (in thousands) Accrued payroll and benefits $ 18,834 $ 34,741 Customer deposits, net of those classified within contract assets 17,125 33,387 Accrued federal and state income taxes 7,016 16,375 Accrued warranty 12,164 12,379 Contingent consideration, current - 9,455 Accrued interest 6,332 6,594 Advance supplier consideration 2,594 2,808 Accrued health claims insurance payable 2,193 2,068 Other 6,932 7,427 Accrued liabilities $ 73,190 $ 125,234 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | Long-term debt consists of the following: December 30, December 31, 2023 2022 (in thousands) 2021 Senior Notes Due 2029 - Senior notes issued on September 24, 2021, 4.375 % per annum $ 575,000 $ 575,000 2016 Credit Agreement Due 2027 - Revolving credit facility 7.11 %, including a SOFR rate of 5.36 % and an applicable margin of 1.75 %. At December 31, 6.07 %, including a SOFR rate of 4.32 % and an applicable margin of 1.75 %. 45,000 76,352 Long-term debt 620,000 651,352 Fees, costs, and discount (1) ( 7,898 ) ( 9,218 ) Long-term debt, net 612,102 642,134 Less current portion of long-term debt — — Long-term debt, net, less current portion $ 612,102 $ 642,134 (1) Fees, costs, and discount represents third-party fees, lender fees, other debt-related costs, and original issue premium and discount, recorded as a net reduction of the carrying value of debt and are amortized over the lives of the debt instruments to which they relate under the effective interest method. |
Activity Relating to Deferred Financing Costs | Activity relating to deferred financing costs, which is classified as a reduction of the carrying value of long-term debt, for year ended December 30, 2023, are as follows: (in thousands) Total At beginning of year $ 9,218 Less: Amortization expense ( 1,320 ) At end of year $ 7,898 |
Estimated Amortization Expense Relating to Third-Party Fees and Costs, Lender Fees and Discount | Estimated amortization expense relating to third-party fees and costs, lender fees and discount for the years indicated, as of December 30, 2023, is as follows: (in thousands) Total 2024 $ 1,366 2025 1,442 2026 1,466 2027 1,440 2028 1,222 Thereafter 962 Total $ 7,898 |
Future Maturities of Long-Term Debt | The following represents future maturities of long-term debt as of December 30, 2023 (at face value): (in thousands) Total 2024 $ — 2025 — 2026 — 2027 45,000 2028 — Thereafter 575,000 Total $ 620,000 |
Schedule of Interest Expense, Net | Interest expense, net consisted of the following: Year Ended December 30, December 31, January 1, 2023 2022 2022 (in thousands) Long-term debt $ 30,527 $ 27,866 $ 28,625 Debt fees 697 433 474 Amortization and write-offs of deferred financing costs and debt discount 1,320 1,242 978 Interest income ( 1,245 ) ( 620 ) ( 27 ) Interest expense 31,299 28,921 30,050 Capitalized interest ( 222 ) ( 42 ) ( 21 ) Interest expense, net $ 31,077 $ 28,879 $ 30,029 |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Fair Value of Hedges | The fair values of our aluminum hedges and MTP contracts are classified in the accompanying consolidated balance sheets at December 30, 2023, and December 31, 2022, as follows (in thousands): Derivative Assets Derivative (Liabilities) December 30, 2023 December 30, 2023 Derivatives designated as hedging instruments under Subtopic 815-20: Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivative instruments: Aluminum forward contracts Other current assets $ 257 Accrued liabilities $ — MTP contracts Other current assets — Accrued liabilities — Aluminum forward contracts Other assets — Other liabilities — MTP contracts Other assets — Other liabilities — Total derivative instruments Total derivative assets $ 257 Total derivative liabilities $ — Derivative Assets Derivative (Liabilities) December 31, 2022 December 31, 2022 Derivatives designated as hedging instruments under Subtopic 815-20: Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivative instruments: Aluminum forward contracts Other current assets $ — Accrued liabilities $ — MTP contracts Other current assets 300 Accrued liabilities — Aluminum forward contracts Other assets — Other liabilities — MTP contracts Other assets — Other liabilities — Total derivative instruments Total derivative assets $ 300 Total derivative liabilities $ — |
Gains (Losses) on Derivative Financial Instruments | The following represents the gains (losses) on derivative financial instruments, and their classifications within the accompanying consolidated financial statements for the three years ended December 30, 2023 (in thousands): Derivatives in Cash Flow Hedging Relationships Amount of Gain or (Loss) Recognized in OCI(L) on Derivatives Location of Gain or (Loss) Reclassified from Accumulated OCI(L) into Income Amount of Gain or (Loss) Reclassified from Accumulated OCI(L) into Income Year Ended Year Ended January 1, 2022 January 1, 2022 Aluminum contracts $ 14,012 Cost of sales $ 12,373 MTP contracts $ 10,443 Cost of sales $ 6,265 December 31, 2022 December 31, 2022 Aluminum contracts ($ 7,732 ) Cost of sales ($ 2,903 ) MTP contracts $ 42 Cost of sales $ 4,341 December 30, 2023 December 30, 2023 Aluminum contracts ($ 361 ) Cost of sales ($ 618 ) MTP contracts ($ 94 ) Cost of sales $ 206 We classify cash flows related to derivative instruments as operating activities in the accompanying consolidated statements of cash flows. |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value on Recurring Basis | The carrying amounts for financial instruments measured at fair value are as follows: Fair Value Measurements Assets (Liabilities) Quoted Significant Prices in Other Significant Active Observable Unobservable Markets Inputs Inputs December 30, 2023 Total (Level 1) (Level 2) (Level 3) Description Aluminum forward contracts $ 257 $ — $ 257 $ — MTP contracts — — — — $ 257 $ — $ 257 $ — December 31, 2022 Total (Level 1) (Level 2) (Level 3) Description Aluminum forward contracts, net $ — $ — $ — $ — MTP contracts, net 300 — 300 — $ 300 $ — $ 300 $ — |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Components of Income Tax Expense | The components of income tax expense are as follows (in thousands): Year Ended December 30, December 31, January 1, 2023 2022 2022 Current: Federal $ 24,402 $ 34,411 $ 790 State 6,856 9,595 1,337 Total current tax expense 31,258 44,006 2,127 Deferred: Federal 5,506 ( 8,661 ) 7,142 State 1,246 ( 2,679 ) 490 Total deferred tax expense (benefit) 6,752 ( 11,340 ) 7,632 Income tax expense $ 38,010 $ 32,666 $ 9,759 |
Summary of Income Taxes Included in Consolidated Statement of Operations and Consolidated Statement of Equity | The aggregate amount of income taxes included in the consolidated statements of operations and consolidated statements of shareholders’ equity are as follows (in thousands): Year Ended December 30, December 31, January 1, 2023 2022 2022 Consolidated statements of operations: Income tax expense relating to continuing operations $ 38,010 $ 32,666 $ 9,759 Consolidated statements of shareholders' equity: Income tax benefit (expense) relating to derivatives $ 11 $ 2,345 $ ( 1,531 ) |
Reconciliation of Statutory Federal Income Tax Rate | A reconciliation of the statutory federal income tax rate to our effective rate is provided below: Year Ended December 30, December 31, January 1, 2023 2022 2022 Statutory federal income tax rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal income tax benefit 4.6 % 4.7 % 3.2 % Non-deductible expenses 3.0 % 1.3 % 1.3 % Research activities credits ( 0.9 )% ( 1.2 )% ( 0.8 )% Florida excess tax refund relating to the Tax Cuts and Jobs Act — ( 0.4 )% — Eco partnership income attributable to non-controlling interest ( 0.2 )% ( 0.3 )% ( 1.2 )% Excess stock-based compensation tax benefits ( 1.4 )% ( 0.1 )% ( 2.0 )% Other ( 0.4 )% ( 0.1 )% 0.2 % Consolidated effective tax rate 25.7 % 24.9 % 21.7 % |
Components of Net Deferred Tax Asset and Liability | Significant components of our net deferred tax liability are as follows: December 30, December 31, 2023 2022 (in thousands) Deferred tax assets: Operating lease liability $ 34,517 $ 21,496 Deferrals and accruals relating to ASC 606, net 5,530 5,707 State bonus depreciation and tax credits 3,897 3,926 Stock-based compensation expense 2,113 2,926 Accrued warranty 3,900 3,564 Acquisition costs 3,354 2,236 Advance supplier consideration 664 1,388 Other deferrals and accruals, net 9,247 10,039 Obsolete inventory, UNICAP and other related items — 4,054 Allowance for credit losses 4,216 3,885 Total deferred tax assets 67,438 59,221 Deferred tax liabilities: Property, plant and equipment ( 21,453 ) ( 21,257 ) Trade names and other intangible assets, net ( 38,221 ) ( 39,193 ) Goodwill ( 23,823 ) ( 21,303 ) Operating lease right-of-use asset ( 31,741 ) ( 19,655 ) Obsolete inventory, UNICAP and other related items ( 2,612 ) — Eco partnership basis difference — ( 2,921 ) Derivative financial instruments ( 66 ) ( 77 ) Prepaid expenses ( 2,207 ) ( 2,222 ) Total deferred tax liabilities ( 120,123 ) ( 106,628 ) Total deferred tax liabilities, net $ ( 52,685 ) $ ( 47,407 ) |
Leases, Commitments and Conti_2
Leases, Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Leases Commitments And Contingencies Disclosure [Abstract] | |
Components of Lease Expense | The components of lease expense for the years ended December 30, 2023, December 31, 2022 and January 1, 2022, are as follows (in thousands): Year Ended December 30, December 31, January 1, 2023 2022 2022 Operating lease cost $ 23,944 $ 20,490 $ 15,254 Short-term lease cost 10,493 10,175 9,872 Total lease cost $ 34,437 $ 30,665 $ 25,126 |
Other Information Relating to Leases | Other information relating to leases for the years ended December 30, 2023, December 31, 2022 and January 1, 2022,, are as follows (in thousands, except years and percentages): Year Ended December 30, December 31, January 1, 2023 2022 2022 Supplemental cash flows information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows relating to operating leases $ ( 22,966 ) $ ( 19,635 ) $ ( 13,750 ) Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 44,424 $ 29,031 $ 65,678 Weighted average remaining lease term in years Operating leases 6.91 7.12 7.04 Weighted average discount rate Operating leases 5.3 % 5.2 % 5.5 % |
Future Minimum Lease Commitments for Non-Cancelable Operating Leases | Future minimum lease commitments for operating leases are as follows (in thousands): December 30, 2023 2024 $ 26,687 2025 25,943 2026 24,480 2027 23,400 2028 19,376 Thereafter 39,849 Total future minimum lease payments 159,735 Less: Imputed interest ( 25,337 ) Operating lease liability - total $ 134,398 Reported as of December 30, 2023: Current portion of operating lease liability $ 20,368 Operating lease liability, less current portion 114,030 Operating lease liability - total $ 134,398 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of the Status of Restricted Share Awards | A summary of the status of restricted share awards as of December 30, 2023, and changes during the year then ended, are presented below: Number of Weighted Outstanding at December 31, 2022 1,268,258 $ 18.75 Granted 1,064,169 $ 23.94 Vested ( 767,734 ) $ 18.86 Forfeited/Performance adjustment ( 418,164 ) $ 19.18 Outstanding at December 30, 2023 1,146,529 $ 24.60 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Income (Loss) | The following table shows the components of accumulated other comprehensive income (loss) for the years ended December 30, 2023, December 31, 2022, and January 1, 2022: Aluminum Forward MTP (in thousands) Contracts Contracts Total Accumulated other comprehensive income at January 2, 2021 $ 2,403 $ 317 $ 2,720 Change in fair value of derivatives 14,012 10,443 24,455 Amounts reclassified from accumulated other comprehensive earnings ( 12,373 ) ( 6,265 ) ( 18,638 ) Tax effect ( 432 ) ( 1,099 ) ( 1,531 ) Net current-period other comprehensive income 1,207 3,079 4,286 Accumulated other comprehensive income at January 1, 2022 $ 3,610 $ 3,396 $ 7,006 Accumulated other comprehensive income at January 1, 2022 $ 3,610 $ 3,396 $ 7,006 Change in fair value of derivatives ( 7,732 ) 42 ( 7,690 ) Amounts reclassified from accumulated other comprehensive earnings 2,903 ( 4,341 ) ( 1,438 ) Tax effect 1,219 1,126 2,345 Net current-period other comprehensive loss ( 3,610 ) ( 3,173 ) ( 6,783 ) Accumulated other comprehensive income at December 31, 2022 $ - $ 223 $ 223 Accumulated other comprehensive income at December 31, 2022 $ - $ 223 $ 223 Change in fair value of derivatives ( 361 ) ( 94 ) ( 455 ) Amounts reclassified from accumulated other comprehensive earnings 618 ( 206 ) 412 Tax effect ( 66 ) 77 11 Net current-period other comprehensive loss 191 ( 223 ) ( 32 ) Accumulated other comprehensive income at December 30, 2023 $ 191 $ - $ 191 |
Segments (Tables)
Segments (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Segment Reporting [Abstract] | |
Summary of Financial Data Attributable to Operating Segments | The following table represents summary financial data attributable to our operating segments for the years ended December 30, 2023, December 31, 2022, and January 1, 2022. Results of the Southeast segment for the year ended January 1, 2022 includes the results of Eco for its post-acquisition period from February 1, 2021. Results of the Western segment for the year ended December 31, 2022 includes the results of Martin for its post-acquisition period from October 14, 2022, and for the year ended January 1, 2022, includes the results of Anlin for its post-acquisition period from October 25, 2021. Corporate overhead has been allocated to each segment using an allocation method we believe is reasonable (in thousands): Year Ended December 30, December 31, January 1, 2023 2022 2022 Net sales: Southeast segment $ 1,130,394 $ 1,110,355 $ 968,693 Western segment 373,847 381,599 192,771 Total net sales $ 1,504,241 $ 1,491,954 $ 1,161,464 Income from operations: Southeast segment $ 137,150 $ 112,593 $ 74,815 Western segment 49,298 55,190 25,641 Impairment of trade name (1) ( 5,500 ) ( 7,423 ) — Restructuring costs and charges, net (2) ( 1,722 ) — — Total income from operations 179,226 160,360 100,456 Interest expense, net 31,077 28,879 30,029 Debt extinguishment costs - 410 25,472 Total income before income taxes $ 148,149 $ 131,071 $ 44,955 (1) In 2023, impairment to our Martin trade name, which is part of our Western segment. In 2022, impairment relates to our WinDoor trade name, which is part of our Southeast segment. (2) Restructuring costs and charges, net, relates to our NewSouth brand, which is part of our Southeast segment. |
Redeemable Non-Controlling In_2
Redeemable Non-Controlling Interest (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Noncontrolling Interest [Abstract] | |
Summary of Changes in Redeemable Non-Controlling Interest | The following table presents the changes in the Company’s redeemable non-controlling interest for the period presented: Year Ended December 30, December 31, (in thousands) 2023 2022 Balance at beginning of year $ 34,721 $ 36,863 Net income attributable to RNCI 1,101 1,523 Change in value of RNCI 1,637 ( 2,000 ) Distribution to non-controlling interest — ( 1,665 ) Redemption of RNCI ( 37,459 ) — Balance at end of year $ — $ 34,721 |
Description of Business - Addit
Description of Business - Additional Information (Detail) - North Venice [Member] | 12 Months Ended |
Dec. 30, 2023 Plant | |
Glass Tempering and Laminating Plant [Member] | |
Description Of Business [Line Items] | |
Number of plants | 2 |
Insulation Glass Plants [Member] | |
Description Of Business [Line Items] | |
Number of plants | 1 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | ||
Oct. 01, 2022 USD ($) | Dec. 30, 2023 USD ($) Segment | Dec. 31, 2022 USD ($) | Jan. 01, 2022 USD ($) | |
Business Description And Accounting Policies [Line Items] | ||||
Number of operating segments | Segment | 2 | |||
Cost of sales | $ 913,600,000 | $ 921,285,000 | $ 757,965,000 | |
Advertising Expense | $ 29,300,000 | 22,700,000 | 15,800,000 | |
Original maturity date of cash and cash equivalents | three months or less | |||
Acquisition adjustment to decrease warranty reserve | $ (2,500,000) | $ (2,537,000) | 4,150,000 | |
Assumed warranty reserves | $ 4,200,000 | |||
Warranty expense, average rate | 2.40% | 2.10% | 2% | |
Portion of warranty expense related to issuance of product | $ 3,200,000 | $ 3,900,000 | $ 3,000,000 | |
Servicing warranty claims | $ 32,800,000 | 28,100,000 | 19,200,000 | |
Lessee, operating lease, option to extend, description | Our lease terms may include options to extend or terminate the lease. | |||
Operating lease existence of option to extend | true | |||
Lessee, operating lease, option to terminate, description | Our lease terms may include options to extend or terminate the lease. | |||
Operating lease existence of option to terminate | true | |||
Capitalization of software | $ 32,300,000 | 31,700,000 | ||
Accumulated depreciation of capitalized software | 32,000,000 | 30,300,000 | ||
Amortization expense for capitalized software | 1,700,000 | 3,000,000 | 3,700,000 | |
The amount of insured limit exceeds by the balance | 29,800,000 | 61,400,000 | ||
Material liability for unrecognized tax benefits | 0 | |||
Impairment of trade name | 5,500,000 | 7,423,000 | ||
Trade Name [Member] | ||||
Business Description And Accounting Policies [Line Items] | ||||
Impairment of trade name | $ 5,500,000 | |||
Minimum [Member] | ||||
Business Description And Accounting Policies [Line Items] | ||||
Warranty periods | 1 year | |||
Warranty period of the majority of products sold | 1 year | |||
Maximum [Member] | ||||
Business Description And Accounting Policies [Line Items] | ||||
Warranty periods | 10 years | |||
Warranty period of the majority of products sold | 3 years | |||
Lessee, operating lease, option to extend, description | 5 years | |||
Lessee, operating lease, option to terminate, description | 1 year | |||
Shipping, Handling and Distribution [Member] | ||||
Business Description And Accounting Policies [Line Items] | ||||
Cost of sales | $ 69,700,000 | $ 75,100,000 | $ 62,400,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Accounts, Notes Receivable and Allowance for Doubtful Accounts (Detail) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Accounting Policies [Abstract] | ||
Accounts receivable | $ 131,795 | $ 173,763 |
Less: Allowance for credit losses | (14,178) | (13,656) |
Accounts receivable, net | $ 117,617 | $ 160,107 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Information Regarding Warranty Accrual (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Oct. 01, 2022 | Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Guarantees [Abstract] | ||||
Accrued Warranty, Beginning of Period | $ 15,388 | $ 13,504 | $ 8,001 | |
Accrued Warranty, Acquired (Acquisition Adjustment) | $ (2,500) | (2,537) | 4,150 | |
Accrued Warranty, Charged to Expense | 36,261 | 31,223 | 23,637 | |
Accrued Warranty, Adjustments | (285) | 698 | (1,440) | |
Accrued Warranty, Settlements | (36,128) | (27,500) | (20,844) | |
Accrued Warranty, End of Period | $ 15,236 | $ 15,388 | $ 13,504 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Inventories (Detail) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 108,796 | $ 109,679 |
Work in progress | 1,771 | 916 |
Finished goods | 1,214 | 2,077 |
Inventories | $ 111,781 | $ 112,672 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Schedule of Property, Plant and Equipment (Detail) | Dec. 30, 2023 |
Property, Plant and Equipment [Line Items] | |
Property, Plant, and Equipment, Useful Life, Term, Description [Extensible Enumeration] | Leasehold Improvements [Member] |
Computer Software [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated life | 3 years |
Minimum [Member] | Building and Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated life | 5 years |
Minimum [Member] | Furniture and Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated life | 3 years |
Minimum [Member] | Vehicles [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated life | 5 years |
Maximum [Member] | Building and Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated life | 40 years |
Maximum [Member] | Furniture and Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated life | 10 years |
Maximum [Member] | Vehicles [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated life | 10 years |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Calculation of EPS and Reconciliation of Weighted Average Common Shares Used in Calculation of Basic and Diluted EPS (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Earnings Per Share [Abstract] | |||
Net income | $ 110,139 | $ 98,405 | $ 35,196 |
Less: Net income attributable to RNCI | (1,101) | (1,523) | (2,318) |
Net income attributable to the Company | 109,038 | 96,882 | 32,878 |
Change in redemption value of RNCI | (1,637) | 2,000 | (6,081) |
Net income attributable to common shareholders | $ 107,401 | $ 98,882 | $ 26,797 |
Weighted-average common shares - Basic | 58,363 | 59,926 | 59,518 |
Add: Dilutive shares from equity plans | 337 | 393 | 540 |
Weighted-average common shares - Diluted | 58,700 | 60,319 | 60,058 |
Weighted average number of common shares outstanding: | |||
Basic | $ 1.84 | $ 1.65 | $ 0.45 |
Diluted | $ 1.83 | $ 1.64 | $ 0.45 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Schedule of Supplemental Cash Flow Information and Non-Cash Activity (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Supplemental cash flow information: | |||
Interest paid (net of interest income) | $ 30,246 | $ 27,948 | $ 32,636 |
Income tax payments, net of refunds | 40,617 | 21,499 | 12,166 |
Non-cash activity: | |||
Establish right-of-use asset | 44,424 | 29,031 | 65,678 |
Establish operating lease liability | (44,424) | (29,031) | (65,678) |
Property, plant and equipment additions in accounts payable | $ 387 | $ 565 | $ 772 |
Revenue Recognition and Contr_3
Revenue Recognition and Contracts with Customers - Additional Information (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 USD ($) Segment | Dec. 31, 2022 USD ($) | Jan. 01, 2022 USD ($) | |
Disaggregation Of Revenue [Line Items] | |||
Number of reportable segments | Segment | 2 | ||
Net sales | $ 1,504,241 | $ 1,491,954 | $ 1,161,464 |
Contract liabilities | 21,900 | 39,100 | |
Contract assets, net | 37,733 | 47,919 | |
Accrued Liabilities [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Contract liabilities | 17,100 | 33,400 | |
Contract Assets, Net [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Contract assets, net | 4,800 | 5,700 | |
Western Segment [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | 373,847 | 381,599 | 192,771 |
Western Segment [Member] | Volume Products [Member] | Passes at Point in Time [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | $ 79,400 | $ 111,500 | $ 83,000 |
Revenue Recognition and Contr_4
Revenue Recognition and Contracts with Customers - Net Sales by Reporting Segment, Product Category and Market (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Disaggregation Of Revenue [Line Items] | |||
Net sales | $ 1,504,241 | $ 1,491,954 | $ 1,161,464 |
Southeast Segment [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | 1,130,394 | 1,110,355 | 968,693 |
Western Segment [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | 373,847 | 381,599 | 192,771 |
Impact-Resistant Window and Door Products [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | 926,300 | 878,800 | 787,200 |
Non-Impact Window and Door Products [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | $ 577,900 | $ 613,200 | $ 374,300 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Oct. 14, 2022 | Oct. 13, 2022 | Oct. 25, 2021 | Apr. 01, 2024 | Oct. 01, 2022 | Jul. 01, 2023 | Dec. 31, 2022 | Dec. 30, 2023 | Apr. 02, 2022 | |
Business Acquisition [Line Items] | |||||||||
Goodwill | $ 460,415 | $ 462,630 | |||||||
Martin Acquisition [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Business combination, effective date of acquisition | Oct. 14, 2022 | ||||||||
Fair value of consideration | $ 188,538 | ||||||||
Cash payment to acquire business | 188,538 | $ 98,400 | |||||||
Business combination, acquisition related costs | 4,800 | ||||||||
Goodwill | 92,515 | $ 92,500 | |||||||
Martin Acquisition [Member] | Cash On Hand [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Cash payment to acquire business | 90,100 | ||||||||
Martin Acquisition [Member] | 2016 Credit Agreement Due 2027 [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Cash payment to acquire business | $ 98,400 | ||||||||
Martin Acquisition [Member] | 2016 Credit Agreement Due 2027 [Member] | Cash On Hand [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Cash payment to acquire business | 90,100 | ||||||||
Martin Acquisition [Member] | SPA [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Fair value of consideration | 188,500 | ||||||||
Enterprise value | 185,000 | ||||||||
Payment for estimated net working capital | 2,800 | $ 700 | |||||||
Working capital adjustments | $ 3,500 | ||||||||
Anlin Windows & Doors [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Business combination, effective date of acquisition | Oct. 25, 2021 | ||||||||
Fair value of consideration | $ 121,700 | ||||||||
Estimated fair value of contingent consideration | 6,700 | 9,500 | |||||||
Earn-out contingency payment due in one year | 3,200 | ||||||||
Earn-out contingency payment due in two year | 9,500 | ||||||||
Fair value of contingent consideration | 5,900 | $ 6,700 | |||||||
Earn-out contingency liability adjustment | $ 800 | ||||||||
Contingent consideration payment | $ 2,700 | ||||||||
Business combination, acquisition related costs | $ 5,100 | ||||||||
Goodwill | 9,600 | ||||||||
Business combination contingent consideration liability paid | 12,100 | ||||||||
Anlin Windows & Doors [Member] | 2021 Anlin EBITDA [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Contingent consideration | 2,400 | ||||||||
Anlin Windows & Doors [Member] | 2022 Anlin EBITDA [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Contingent consideration | 4,300 | ||||||||
Anlin Windows & Doors [Member] | Selling, General and Administrative Expenses [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Contingent consideration | $ 300 | ||||||||
Anlin Windows & Doors [Member] | Asset Purchase Agreement [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Business combination, purchase price | 113,500 | ||||||||
Working capital adjustments | 1,500 | ||||||||
Additional payment on working capital adjustments | $ 800 | ||||||||
Cash payment to acquire business | $ 115,000 |
Acquisitions - Schedule of Fair
Acquisitions - Schedule of Fair Value of Assets and Liabilities Assumed (Detail) - USD ($) $ in Thousands | Oct. 14, 2022 | Oct. 13, 2022 | Dec. 30, 2023 | Dec. 31, 2022 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 462,630 | $ 460,415 | ||
Martin Acquisition [Member] | ||||
Business Acquisition [Line Items] | ||||
Accounts receivable | $ 6,459 | |||
Inventories | 9,179 | |||
Contract assets, net | 5,242 | |||
Prepaid expenses and other assets | 90 | |||
Property and equipment | 10,226 | |||
Operating lease right-of-use asset | 12,259 | |||
Intangible assets | 91,900 | |||
Total assets acquired | 135,355 | |||
Accounts payable | (2,482) | |||
Accrued and other liabilities | (987) | |||
Deferred tax liabilities | (23,604) | |||
Operating lease liability | (12,259) | |||
Total liabilities assumed | (39,332) | |||
Net assets acquired | 96,023 | |||
Goodwill | 92,515 | $ 92,500 | ||
Fair value of consideration transferred | 188,538 | |||
Cash | 188,538 | $ 98,400 | ||
Fair value of consideration transferred | 188,538 | |||
Martin Acquisition [Member] | Previously Reported [Member] | ||||
Business Acquisition [Line Items] | ||||
Accounts receivable | 6,653 | |||
Inventories | 9,543 | |||
Contract assets, net | 5,242 | |||
Prepaid expenses and other assets | 90 | |||
Property and equipment | 11,422 | |||
Operating lease right-of-use asset | 12,259 | |||
Intangible assets | 91,900 | |||
Total assets acquired | 137,109 | |||
Accounts payable | (2,482) | |||
Accrued and other liabilities | (1,270) | |||
Deferred tax liabilities | (23,604) | |||
Operating lease liability | (12,259) | |||
Total liabilities assumed | (39,615) | |||
Net assets acquired | 97,494 | |||
Goodwill | 90,300 | |||
Fair value of consideration transferred | 187,794 | |||
Cash | 187,794 | |||
Fair value of consideration transferred | 187,794 | |||
Martin Acquisition [Member] | Adjustments to Allocation [Member] | ||||
Business Acquisition [Line Items] | ||||
Accounts receivable | (194) | |||
Inventories | (364) | |||
Property and equipment | (1,196) | |||
Total assets acquired | (1,754) | |||
Accrued and other liabilities | 283 | |||
Total liabilities assumed | 283 | |||
Net assets acquired | (1,471) | |||
Goodwill | 2,215 | |||
Fair value of consideration transferred | 744 | |||
Cash | 744 | |||
Fair value of consideration transferred | $ 744 |
Acquisitions - Schedule for Val
Acquisitions - Schedule for Valuation of Identifiable Intangible Assets Acquired and Estimate of Useful Lives (Detail) - Martin Acquisition [Member] $ in Thousands | Oct. 14, 2022 USD ($) |
Business Acquisition [Line Items] | |
Final Valuation Amount | $ 91,900 |
Trade Name [Member] | |
Business Acquisition [Line Items] | |
Final Valuation Amount | 24,000 |
Customer-related backlog [Member] | |
Business Acquisition [Line Items] | |
Final Valuation Amount | $ 400 |
Customer-related backlog [Member] | Maximum [Member] | |
Business Acquisition [Line Items] | |
Initial Useful Life (in years) | 1 year |
Customer relationships [Member] | |
Business Acquisition [Line Items] | |
Final Valuation Amount | $ 52,700 |
Initial Useful Life (in years) | 15 years |
Developed Technology [Member] | |
Business Acquisition [Line Items] | |
Final Valuation Amount | $ 14,600 |
Developed Technology [Member] | Minimum [Member] | |
Business Acquisition [Line Items] | |
Initial Useful Life (in years) | 3 years |
Developed Technology [Member] | Maximum [Member] | |
Business Acquisition [Line Items] | |
Initial Useful Life (in years) | 14 years |
Non-compete-related intangible | |
Business Acquisition [Line Items] | |
Final Valuation Amount | $ 200 |
Initial Useful Life (in years) | 5 years |
Property, Plant and Equipment -
Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Detail) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 448,109 | $ 394,753 |
Less: Accumulated depreciation | (209,983) | (186,399) |
Property, plant and equipment, net | 238,126 | 208,354 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 10,563 | 10,563 |
Building and Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 114,506 | 108,629 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 195,223 | 185,229 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 26,462 | 24,975 |
Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 32,286 | 31,729 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 69,069 | $ 33,628 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 35,991 | $ 34,048 | $ 30,487 |
Depreciation classified within cost of sales | $ 24,400 | $ 22,300 | $ 19,300 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Schedule of Goodwill and Intangible Assets Net (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jul. 01, 2023 | Dec. 30, 2023 | Dec. 31, 2022 | |
Indefinite-lived Intangible Assets [Line Items] | |||
Total amortizable intangibles | $ 386,875 | $ 386,875 | |
Less: Accumulated amortization | (191,148) | (164,841) | |
Total amortizable intangibles, net | 195,727 | 222,034 | |
Other intangible assets, net | $ 415,245 | 447,052 | |
Initial WA Useful Life (in years) | 13 years | ||
Goodwill at January 2, 2021 | $ 460,415 | $ 460,415 | |
Goodwill at January 1, 2022 | 462,630 | ||
Anlin [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Goodwill at January 1, 2022 | $ 9,600 | ||
Martin Acquisition [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Increase in goodwill | 744 | ||
Net decrease in other allocation changes | 1,471 | ||
Goodwill at January 1, 2022 | 92,500 | ||
Increase (decease) in trade names | (5,500) | ||
Trade Name [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Intangible assets | 219,518 | 225,018 | |
Customer Relationships and Customer-related Assets [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Total amortizable intangibles | $ 340,047 | 340,047 | |
Customer Relationships and Customer-related Assets [Member] | Minimum [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Initial WA Useful Life (in years) | 1 year | ||
Customer Relationships and Customer-related Assets [Member] | Maximum [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Initial WA Useful Life (in years) | 15 years | ||
Trade Name [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Total amortizable intangibles | $ 22,200 | 22,200 | |
Less: Accumulated amortization | $ (5,800) | (4,300) | |
Initial WA Useful Life (in years) | 15 years | ||
Developed Technology [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Total amortizable intangibles | $ 20,500 | 20,500 | |
Developed Technology [Member] | Minimum [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Initial WA Useful Life (in years) | 3 years | ||
Developed Technology [Member] | Maximum [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Initial WA Useful Life (in years) | 14 years | ||
Noncompete Agreements [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Total amortizable intangibles | $ 3,538 | 3,538 | |
Less: Accumulated amortization | $ (3,000) | (2,600) | |
Noncompete Agreements [Member] | Minimum [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Initial WA Useful Life (in years) | 2 years | ||
Noncompete Agreements [Member] | Maximum [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Initial WA Useful Life (in years) | 5 years | ||
Software License [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Total amortizable intangibles | $ 590 | 590 | |
Less: Accumulated amortization | $ (600) | $ (600) | |
Initial WA Useful Life (in years) | 2 years |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Indefinite-lived Intangible Assets [Line Items] | |||||
Impairment of intangible assets | $ 0 | $ 0 | $ 0 | ||
Amortization of intangible assets | 26,300,000 | 26,200,000 | $ 21,100,000 | ||
Goodwill | $ 462,630,000 | $ 460,415,000 | 462,630,000 | 460,415,000 | |
Impairment of trade name | 5,500,000 | 7,423,000 | |||
Accumulated amortization | 191,148,000 | 164,841,000 | 191,148,000 | 164,841,000 | |
Customer Relationships and Customer-Related Assets [Member] | |||||
Indefinite-lived Intangible Assets [Line Items] | |||||
Accumulated amortization | 174,900,000 | 153,600,000 | 174,900,000 | 153,600,000 | |
Trade Names [Member] | |||||
Indefinite-lived Intangible Assets [Line Items] | |||||
Accumulated amortization | 5,800,000 | 4,300,000 | 5,800,000 | 4,300,000 | |
Developed Technology [Member] | |||||
Indefinite-lived Intangible Assets [Line Items] | |||||
Accumulated amortization | 6,900,000 | 3,700,000 | 6,900,000 | 3,700,000 | |
Noncompete Agreements [Member] | |||||
Indefinite-lived Intangible Assets [Line Items] | |||||
Accumulated amortization | 3,000,000 | 2,600,000 | 3,000,000 | 2,600,000 | |
Software License [Member] | |||||
Indefinite-lived Intangible Assets [Line Items] | |||||
Accumulated amortization | 600,000 | 600,000 | 600,000 | 600,000 | |
Western Window Systems [Member] | |||||
Indefinite-lived Intangible Assets [Line Items] | |||||
Carrying value of windoor trade name | 11,000,000 | 11,000,000 | 11,000,000 | 11,000,000 | |
Trade Names [Member] | |||||
Indefinite-lived Intangible Assets [Line Items] | |||||
Impairment of trade name | 5,500,000 | ||||
Other Indefinite-lived Intangible Assets | 201,000,000 | 201,000,000 | 201,000,000 | 201,000,000 | |
Trade Names [Member] | COVID-19 [Member] | |||||
Indefinite-lived Intangible Assets [Line Items] | |||||
Impairment of trade name | 7,400,000 | ||||
Martin Trade Name [Member] | |||||
Indefinite-lived Intangible Assets [Line Items] | |||||
Goodwill | 18,500,000 | 24,000,000 | 18,500,000 | 24,000,000 | |
Impairment of trade name | 5,500,000 | ||||
Southeast Segment [Member] | |||||
Indefinite-lived Intangible Assets [Line Items] | |||||
Goodwill | 228,300,000 | 228,300,000 | 228,300,000 | 228,300,000 | |
Western Segment [Member] | |||||
Indefinite-lived Intangible Assets [Line Items] | |||||
Goodwill | $ 234,300,000 | $ 232,100,000 | $ 234,300,000 | $ 232,100,000 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Estimated Amortization for Future Fiscal Year (Detail) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2024 | $ 25,971 | |
2025 | 25,640 | |
2026 | 21,241 | |
2027 | 20,987 | |
2028 | 16,771 | |
Thereafter | 85,117 | |
Total amortizable intangibles, net | $ 195,727 | $ 222,034 |
Accrued Liabilities - Schedule
Accrued Liabilities - Schedule of Accrued Liabilities (Detail) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Schedule of Accrued Liabilities [Line Items] | ||
Accrued payroll and benefits | $ 18,834 | $ 34,741 |
Customer deposits, net of those classified within contract assets | 17,125 | 33,387 |
Accrued federal and state income taxes | 7,016 | 16,375 |
Accrued warranty | 12,164 | 12,379 |
Contingent consideration, current | 9,455 | |
Accrued interest | 6,332 | 6,594 |
Accrued health claims insurance payable | 2,193 | 2,068 |
Other | 6,932 | 7,427 |
Accrued liabilities | 73,190 | 125,234 |
Related Party [Member] | ||
Schedule of Accrued Liabilities [Line Items] | ||
Advance supplier consideration | $ 2,594 | $ 2,808 |
Long Term Debt - Schedule of Lo
Long Term Debt - Schedule of Long-term Debt (Detail) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 620,000 | $ 651,352 |
Fees, costs, and discount | (7,898) | (9,218) |
Long-term debt, net | 612,102 | 642,134 |
Long-term debt, net, less current portion | 612,102 | 642,134 |
2021 Senior Notes Due 2029 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 575,000 | 575,000 |
2016 Credit Agreement Due 2027 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 45,000 | $ 76,352 |
Long Term Debt - Schedule of _2
Long Term Debt - Schedule of Long-term Debt (Parenthetical) (Detail) | 12 Months Ended | |
Dec. 30, 2023 | Dec. 31, 2022 | |
2021 Senior Notes Due 2029 [Member] | ||
Debt Instrument [Line Items] | ||
Accrued Interest rate | 4.375% | 4.375% |
2016 Credit Agreement Due 2027 [Member] | ||
Debt Instrument [Line Items] | ||
Average rate of interest payable | 7.11% | 6.07% |
2016 Credit Agreement Due 2027 [Member] | SOFR [Member] | ||
Debt Instrument [Line Items] | ||
Average rate of interest payable | 5.36% | 4.32% |
Margin of interest payable | 1.75% | 1.75% |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||||
Oct. 14, 2022 | Oct. 13, 2022 | Sep. 24, 2021 | Feb. 16, 2016 | Dec. 30, 2023 | Dec. 31, 2022 | Oct. 31, 2019 | |
Line of Credit Facility [Line Items] | |||||||
Face value of debt outstanding | $ 620,000 | $ 651,352 | |||||
Accrued interest | 73,190 | 125,234 | |||||
Letters of credit outstanding | 8,500 | ||||||
Term Loans [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Payments of term loan | $ 61,600 | ||||||
Prepayments of term loan | 60,000 | ||||||
Fees and costs relating to prepayment of term loan | 1,600 | ||||||
2016 Credit Agreement Due 2024 [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Prepayment of term loan | 60,000 | ||||||
2016 Credit Agreement Due 2027 [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Face value of debt outstanding | $ 45,000 | $ 76,352 | |||||
Credit agreement date | Feb. 16, 2016 | ||||||
Debt instrument, covenant compliance | the ability of the Company and any guarantors to, (i) incur additional indebtedness; (ii) pay dividends on or make distributions in respect of capital stock or make certain other restricted payments or investments; (iii) sell or otherwise dispose of assets; (iv) enter into transactions with affiliates; (v) create or incur liens; (vi) merge, consolidate or sell all or substantially all of the Company’s assets; (vii) place restrictions on the ability of subsidiaries to pay dividends or make other payments to the Company; (viii) make investments and (ix) designate the Company’s subsidiaries as unrestricted subsidiaries. These covenants are subject to a number of important exceptions and qualifications. | ||||||
2016 Credit Agreement Due 2027 [Member] | SOFR [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable rate | 1.75% | 1.75% | |||||
2016 Credit Agreement Due 2027 [Member] | Maximum [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Threshold net leverage ratio | 4 | ||||||
2016 Credit Agreement Due 2027 [Member] | Minimum [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Threshold net leverage ratio | 1 | ||||||
Term Loan Facility [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Proceeds from lines of credit | $ 160,000 | ||||||
Proceeds of term loan | 61,600 | ||||||
Repayments of term loan | 60,000 | ||||||
Fees and costs relating to prepayment of term loan | 1,600 | ||||||
Revolving Credit Facility [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Weighted average interest rate | 7.11% | 6.07% | |||||
Revolving Credit Facility due 2024 [Member] | Maximum [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Face value of debt outstanding | $ 80,000 | ||||||
New Revolving Credit Facility [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Face value of debt outstanding | 250,000 | $ 45,000 | |||||
Accrued interest | 43 | ||||||
Proceeds from lines of credit | $ 160,000 | ||||||
Repayments of term loan | 115,000 | ||||||
Term of credit facility | 5 years | ||||||
Credit available under the credit facility | 196,500 | ||||||
New Revolving Credit Facility [Member] | Base Rate [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis points, floor | 100% | ||||||
New Revolving Credit Facility [Member] | SOFR [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis points, floor | 0% | ||||||
New Revolving Credit Facility [Member] | Maximum [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Credit facility amortization percentage | 0.35% | ||||||
New Revolving Credit Facility [Member] | Maximum [Member] | Base Rate [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable rate | 1.75% | ||||||
New Revolving Credit Facility [Member] | Maximum [Member] | SOFR [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable rate | 2.75% | ||||||
New Revolving Credit Facility [Member] | Minimum [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Credit facility amortization percentage | 0.25% | ||||||
New Revolving Credit Facility [Member] | Minimum [Member] | Base Rate [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable rate | 0.75% | ||||||
New Revolving Credit Facility [Member] | Minimum [Member] | SOFR [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable rate | 1.75% | ||||||
Revolving Credit Facility due 2027 [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Face value of debt outstanding | 250,000 | ||||||
Martin Acquisition [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Cash payment to acquire business | 188,538 | $ 98,400 | |||||
Martin Acquisition [Member] | SPA [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Fair value of consideration | 188,500 | ||||||
Martin Acquisition [Member] | 2016 Credit Agreement Due 2027 [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Cash payment to acquire business | $ 98,400 | ||||||
Martin Acquisition [Member] | New Revolving Credit Facility [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Cash payment to acquire business | 98,400 | ||||||
Face value of debt outstanding | 250,000 | ||||||
Proceeds from lines of credit | 160,000 | ||||||
Martin Acquisition [Member] | Cash On Hand [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Cash payment to acquire business | 90,100 | ||||||
Martin Acquisition [Member] | Cash On Hand [Member] | 2016 Credit Agreement Due 2027 [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Cash payment to acquire business | $ 90,100 | ||||||
2021 Senior Notes Due 2029 [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Long-term debt | $ 575,000 | ||||||
Accrued Interest rate | 4.375% | ||||||
Percentage of principal amount issued | 100% | ||||||
Debt instrument, maturity date | Oct. 01, 2029 | ||||||
Face value of debt outstanding | 575,000 | ||||||
Accrued interest | $ 6,300 | ||||||
Financing Costs | $ 8,700 | ||||||
Percentage of lender spread on principal amount | 1.25% | ||||||
Financing costs lender spread | $ 7,200 | ||||||
Financing costs other | $ 1,500 | ||||||
Repurchase notes percentage of aggregate principal amount | 101% | ||||||
2021 Senior Notes Due 2029 [Member] | Prior to October 1, 2024 [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis points, floor | 50% | ||||||
2021 Senior Notes Due 2029 [Member] | On or After August 1, 2024 [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt instrument, redemption percentage | 102.188% | ||||||
2021 Senior Notes Due 2029 [Member] | On or After August 2025 [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt instrument, redemption percentage | 101.094% | ||||||
2021 Senior Notes Due 2029 [Member] | On or After August 1, 2026 [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt instrument, redemption percentage | 100% | ||||||
2018 Senior Notes Due 2026 [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Repayments of debt | $ 425,000 | ||||||
Repurchase notes percentage of aggregate principal amount | 5.063% | ||||||
Debt instrument, face amount | $ 425,000 | ||||||
Prepayment of term loan | $ 21,500 |
Long-Term Debt - Activity Relat
Long-Term Debt - Activity Relating to Third-Party Fees and Costs, Lender Fees and Discount (Detail) $ in Thousands | 12 Months Ended |
Dec. 30, 2023 USD ($) | |
Debt Instrument [Line Items] | |
At beginning of year | $ 9,218 |
Less: Amortization expense | (1,320) |
At end of year | $ 7,898 |
Long-Term Debt - Estimated Amor
Long-Term Debt - Estimated Amortization Expense Relating to Third-Party Fees and Costs, Lender Fees and Discount (Detail) $ in Thousands | Dec. 30, 2023 USD ($) |
Debt Disclosure [Abstract] | |
2024 | $ 1,366 |
2025 | 1,442 |
2026 | 1,466 |
2027 | 1,440 |
2028 | 1,222 |
Thereafter | 962 |
Total | $ 7,898 |
Long-Term Debt - Future Maturit
Long-Term Debt - Future Maturities of Long-Term Debt (Detail) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Debt Disclosure [Abstract] | ||
2024 | $ 0 | |
2025 | 0 | |
2026 | 0 | |
2027 | 45,000 | |
2028 | 0 | |
Thereafter | 575,000 | |
Total | $ 620,000 | $ 651,352 |
Long Term Debt - Interest Expen
Long Term Debt - Interest Expense, Net (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Debt Disclosure [Abstract] | |||
Long-term debt | $ 30,527 | $ 27,866 | $ 28,625 |
Debt fees | 697 | 433 | 474 |
Amortization and write-offs of deferred financing costs and debt discount | 1,320 | 1,242 | 978 |
Interest income | (1,245) | (620) | (27) |
Interest expense | 31,299 | 28,921 | 30,050 |
Capitalized interest | (222) | (42) | (21) |
Interest expense, net | $ 31,077 | $ 28,879 | $ 30,029 |
Derivatives - Additional Inform
Derivatives - Additional Information (Detail) $ in Thousands, lb in Millions | 12 Months Ended | |
Dec. 30, 2023 USD ($) Forwardcontract lb $ / lb | Dec. 31, 2022 USD ($) | |
Derivative [Line Items] | ||
Derivative assets | $ 257 | $ 300 |
Fair Value of Derivative | $ 300 | |
MTP Contracts [Member] | ||
Derivative [Line Items] | ||
Typical order quantities payment terms net | 30 days | |
Number of outstanding forward contracts | Forwardcontract | 0 | |
Aluminum Forward Contracts [Member] | ||
Derivative [Line Items] | ||
Derivative assets | $ 300 | |
Number of outstanding forward contracts | Forwardcontract | 9 | |
Derivative, amount of hedged item | lb | 6.6 | |
Derivative average price | $ / lb | 1.04 | |
Maturity period of contract, minimum | 1 month | |
Maturity period of contract, maximum | 6 months | |
Aluminum Contracts and MTP Contracts [Member] | ||
Derivative [Line Items] | ||
Accumulated other comprehensive income, net of tax | $ 200 | $ 200 |
Derivatives - Summary of Fair V
Derivatives - Summary of Fair Value of Hedges (Detail) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Derivative Instruments And Hedging Activities [Line Items] | ||
Total derivative instruments Assets | $ 257 | $ 300 |
Aluminum Forward Contracts [Member] | ||
Derivative Instruments And Hedging Activities [Line Items] | ||
Total derivative instruments Assets | $ 257 | |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other current assets | |
MTP Contracts [Member] | ||
Derivative Instruments And Hedging Activities [Line Items] | ||
Total derivative instruments Assets | $ 300 | |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other current assets |
Derivatives - Gains (Losses) on
Derivatives - Gains (Losses) on Derivative Financial Instruments (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain or (Loss) Recognized in OCI(L) on Derivatives | $ (455) | $ (7,690) | $ 24,455 |
Aluminum Contracts [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain or (Loss) Reclassified from Accumulated OCI(L) into Income | $ (618) | $ (2,903) | $ 12,373 |
Derivative Instrument, Gain (Loss) Reclassified from AOCI into Income, Effective Portion, Statement of Income or Comprehensive Income [Extensible Enumeration] | Cost of Goods and Services Sold | Cost of Goods and Services Sold | Cost of Goods and Services Sold |
Aluminum Contracts [Member] | Inventory Classified as Cost of Sales [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain or (Loss) Recognized in OCI(L) on Derivatives | $ (361) | $ (7,732) | $ 14,012 |
MTP Contracts [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain or (Loss) Reclassified from Accumulated OCI(L) into Income | $ 206 | $ 4,341 | $ 6,265 |
Derivative Instrument, Gain (Loss) Reclassified from AOCI into Income, Effective Portion, Statement of Income or Comprehensive Income [Extensible Enumeration] | Cost of Goods and Services Sold | Cost of Goods and Services Sold | Cost of Goods and Services Sold |
MTP Contracts [Member] | Inventory Classified as Cost of Sales [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain or (Loss) Recognized in OCI(L) on Derivatives | $ (94) | $ 42 | $ 10,443 |
Fair Value - Additional Informa
Fair Value - Additional Information (Detail) - USD ($) | Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Fair value of assets, level 1 to level 2 or level 3 transfers | $ 0 | $ 0 | $ 0 |
Long-term debt | 620,000,000 | 651,352,000 | |
2016 Credit Agreement Due 2027 [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Fair value of current long-term debt | 45,000,000 | 76,400,000 | |
Long-term debt | 45,000,000 | 76,352,000 | |
2021 Senior Notes Due 2029 [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Fair value of current long-term debt | 549,100,000 | 480,800,000 | |
Long-term debt | $ 575,000,000 | $ 575,000,000 |
Fair Value - Schedule of Fair V
Fair Value - Schedule of Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets (Liabilities) | $ 257 | $ 300 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets (Liabilities) | 257 | 300 |
Aluminum Forward Contracts [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets (Liabilities) | 257 | |
Aluminum Forward Contracts [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets (Liabilities) | $ 257 | |
MTP Contracts [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets (Liabilities) | 300 | |
MTP Contracts [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets (Liabilities) | $ 300 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Income Tax Disclosure [Abstract] | |||
Federal | $ 24,402 | $ 34,411 | $ 790 |
State | 6,856 | 9,595 | 1,337 |
Total current tax expense | 31,258 | 44,006 | 2,127 |
Federal | 5,506 | (8,661) | 7,142 |
State | 1,246 | (2,679) | 490 |
Total deferred tax expense (benefit) | 6,752 | (11,340) | 7,632 |
Income tax expense | $ 38,010 | $ 32,666 | $ 9,759 |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Taxes Included in Consolidated Statement of Operations and Consolidated Statement of Equity (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Consolidated statements of operations: | |||
Income tax expense relating to continuing operations | $ 38,010 | $ 32,666 | $ 9,759 |
Consolidated statements of shareholders' equity: | |||
Income tax benefit (expense) relating to derivatives | $ 11 | $ 2,345 | $ (1,531) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Statutory Federal Income Tax Rate (Detail) | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Income Tax Disclosure [Abstract] | |||
Statutory federal income tax rate | 21% | 21% | 21% |
State income taxes, net of federal income tax benefit | 4.60% | 4.70% | 3.20% |
Non-deductible expenses | 3% | 1.30% | 1.30% |
Research activities credits | (0.90%) | (1.20%) | (0.80%) |
Florida excess tax refund relating to the Tax Cuts and Jobs Act | (0.40%) | ||
Eco partnership income attributable to non-controlling interest | (0.20%) | (0.30%) | (1.20%) |
Excess stock-based compensation tax benefits | (1.40%) | (0.10%) | (2.00%) |
Other | (0.40%) | (0.10%) | 0.20% |
Consolidated effective tax rate | 25.70% | 24.90% | 21.70% |
Income Taxes - Components of Ne
Income Taxes - Components of Net Deferred Tax Asset and Liability (Detail) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Deferred tax assets: | ||
Operating lease liability | $ 34,517 | $ 21,496 |
Deferrals and accruals relating to ASC 606, net | 5,530 | 5,707 |
State bonus depreciation and tax credits | 3,897 | 3,926 |
Stock-based compensation expense | 2,113 | 2,926 |
Accrued warranty | 3,900 | 3,564 |
Acquisition costs | 3,354 | 2,236 |
Advance supplier consideration | 664 | 1,388 |
Other deferrals and accruals, net | 9,247 | 10,039 |
Obsolete inventory, UNICAP and other related items | 4,054 | |
Allowance for credit losses | 4,216 | 3,885 |
Total deferred tax assets | 67,438 | 59,221 |
Deferred tax liabilities: | ||
Property, plant and equipment | (21,453) | (21,257) |
Trade names and other intangible assets, net | (38,221) | (39,193) |
Goodwill | (23,823) | (21,303) |
Operating lease right-of-use asset | (31,741) | (19,655) |
Obsolete inventory, UNICAP and other related items | (2,612) | |
Eco partnership basis difference | (2,921) | |
Derivative financial instruments | (66) | (77) |
Prepaid expenses | (2,207) | (2,222) |
Total deferred tax liabilities | (120,123) | (106,628) |
Total deferred tax liabilities, net | $ (52,685) | $ (47,407) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Income Taxes [Line Items] | |||||
Income taxes current | $ 7,016 | $ 16,375 | $ 7,016 | $ 16,375 | |
Payments of income taxes | $ 40,600 | $ 21,500 | |||
Internal Revenue Service (IRS) [Member] | Earliest Tax Year [Member] | |||||
Income Taxes [Line Items] | |||||
Open tax years for examination | 2019 | ||||
Internal Revenue Service (IRS) [Member] | Latest Tax Year [Member] | |||||
Income Taxes [Line Items] | |||||
Open tax years for examination | 2022 | ||||
ASU 2016-09 [Member] | |||||
Income Taxes [Line Items] | |||||
Excess tax benefits | $ 2,000 | $ 200 | $ 900 |
Leases, Commitments and Conti_3
Leases, Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Commitments Contingencies And Other Matters | |||
Operating lease existence of option to extend | true | ||
Operating lease extension period | Our lease terms may include options to extend or terminate the lease. | ||
Operating lease existence of option to terminate | true | ||
Operating lease termination period | Our lease terms may include options to extend or terminate the lease. | ||
Operating lease not yet commenced description | no additional operating or finance leases that have not yet commenced | ||
Finance lease not yet commenced description | no additional operating or finance leases that have not yet commenced | ||
Lease expenses | $ 34.4 | $ 30.7 | $ 25.1 |
Amount required for payment of materials | 30.6 | 26.1 | |
Purchase of materials | 459.9 | 454.6 | 262.4 |
Letters of credit | 8.5 | ||
Cost of Sales [Member] | |||
Commitments Contingencies And Other Matters | |||
Lease expenses | $ 18.1 | $ 15.6 | $ 10.6 |
Minimum [Member] | |||
Commitments Contingencies And Other Matters | |||
Operating lease term | 1 year | ||
Maximum [Member] | |||
Commitments Contingencies And Other Matters | |||
Operating lease term | 12 years | ||
Operating lease extension period | 5 years | ||
Operating lease termination period | 1 year |
Leases, Commitments and Conti_4
Leases, Commitments and Contingencies - Components of Lease Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Leases Commitments And Contingencies Disclosure [Abstract] | |||
Operating lease cost | $ 23,944 | $ 20,490 | $ 15,254 |
Short-term lease cost | 10,493 | 10,175 | 9,872 |
Total lease cost | $ 34,437 | $ 30,665 | $ 25,126 |
Leases, Commitments and Conti_5
Leases, Commitments and Contingencies - Other Information Relating to Leases (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows relating to operating leases | $ (22,966) | $ (19,635) | $ (13,750) |
Right-of-use assets obtained in exchange for lease obligations: | |||
Operating leases | $ 44,424 | $ 29,031 | $ 65,678 |
Weighted average remaining lease term in years | |||
Operating leases | 6 years 10 months 28 days | 7 years 1 month 13 days | 7 years 14 days |
Weighted average discount rate | |||
Operating leases | 5.30% | 5.20% | 5.50% |
Leases, Commitments and Conti_6
Leases, Commitments and Contingencies - Future Minimum Lease Commitments for Non-Cancelable Operating Leases (Detail) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Leases Commitments And Contingencies Disclosure [Abstract] | ||
Year one | $ 26,687 | |
Year Two | 25,943 | |
Year Three | 24,480 | |
Year Four | 23,400 | |
Year Five | 19,376 | |
Thereafter | 39,849 | |
Total future minimum lease payments | 159,735 | |
Less: Imputed interest | (25,337) | |
Operating lease liability - total | 134,398 | |
Current portion of operating lease liability | 20,368 | $ 16,393 |
Operating lease liability, less current portion | $ 114,030 | $ 95,159 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
May 22, 2019 | Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Age of employees | 401(k) plan covering substantially all employees 18 years of age or older who have at least three months of service. | |||
Service period required | 3 months | |||
Employee's contribution | 80% | |||
Matching contribution | 3% | 3% | 3% | |
Vesting rate | 20% | |||
Requisite hours of work | at least 1,000 hours | |||
Recognized employee benefit | $ 6.8 | $ 6.5 | $ 4.5 | |
2019 Employee Stock Purchase Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Common stock issued under ESPP, Shares | 700,000 | 157,677 | ||
2019 Employee Stock Purchase Plan [Member] | Minimum [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Purchase price of common stock as percentage of fair market value | 85% |
Related Parties - Additional In
Related Parties - Additional Information (Detail) - Builders FirstSource, Inc [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Related Party Transaction [Line Items] | |||
Total net sales to Builders FirstSource | $ 25.6 | $ 54 | $ 25.9 |
Accounts receivable due from Builders FirstSource | $ 3.2 | $ 5.6 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | ||||
Mar. 30, 2023 Right $ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 30, 2023 USD ($) $ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | Feb. 07, 2023 USD ($) | May 22, 2019 USD ($) | |
Schedule Of Equity [Line Items] | ||||||
Acquisition of treasury stock | $ 83,090,000 | $ 1,565,000 | ||||
Preferred stock, par value | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | |||
2023 Share Repurchase Program [Member] | ||||||
Schedule Of Equity [Line Items] | ||||||
Shares repurchased | shares | 3,300,233 | |||||
Stock repurchase program, authorized amount | $ 250,000,000 | |||||
Total cost of common stock repurchased | $ 82,300,000 | |||||
Percentage excise tax imposed | 1% | |||||
Share repurchase program an initial term | 3 years | |||||
2019 Share Repurchase Program [Member] | ||||||
Schedule Of Equity [Line Items] | ||||||
Shares repurchased | shares | 86,124 | |||||
Stock repurchase program, authorized amount | $ 30,000,000 | |||||
Total cost of common stock repurchased | $ 1,600,000 | |||||
Restricted Stock [Member] | ||||||
Schedule Of Equity [Line Items] | ||||||
Shares repurchased | shares | 241,290 | 95,001 | ||||
Acquisition of treasury stock | $ 7,200,000 | $ 1,900,000 | ||||
Common Stock [Member] | ||||||
Schedule Of Equity [Line Items] | ||||||
Shares repurchased | shares | 3,300,233 | 86,124 | ||||
Shareholder Rights Plan [Member] | ||||||
Schedule Of Equity [Line Items] | ||||||
Number of dividend rights declared | Right | 1 | |||||
Rights expiration, description | The Rights expire on the earliest of (1) March 30, 2024, unless such date is extended, or (2) the redemption or exchange of the Rights as described above. | |||||
Rights exercisable upon minimum percentage of beneficial ownership acquired | 10% | |||||
Series A Participating Preferred Stock [Member] | Shareholder Rights Plan [Member] | ||||||
Schedule Of Equity [Line Items] | ||||||
Preferred Stock Dividends, Shares | shares | 0.001 | |||||
Preferred stock, par value | $ / shares | $ 0.01 | |||||
Shares issued, exercise price | $ / shares | $ 90 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||||
Feb. 15, 2023 | Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | Jun. 10, 2022 | May 22, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Compensation expense for stock based awards | $ 12,240 | $ 9,670 | $ 7,819 | |||
Selling, General and Administrative Expenses [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Compensation expense for stock based awards | $ 10,500 | $ 8,200 | $ 6,400 | |||
Restricted Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Restricted stock awards | 1,064,169 | |||||
Weighted-average period | 2 years 1 month 6 days | |||||
Weighted average fair value of common stock | $ 18.86 | |||||
Total unrecognized compensation | $ 18,900 | |||||
2019 Equity and Incentive Compensation Plan [Member] | Maximum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Common shares available for grant | 1,550,000 | |||||
2019 Amended and Restated Equity Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Common shares available for grant | 2,766,235 | |||||
Increase in total number of shares of common stock available for grant | 3,000,000 | |||||
2021 Long Term Incentive Plan [Member] | Restricted Stock [Member] | Executive and Non-Executive Employees [Member] | EBITDA Criteria [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Percentage of shares issuable based on target performance | 37.50% | |||||
2022 Long Term Incentive Plan | Restricted Stock [Member] | Executive and Non-Executive Employees [Member] | EBITDA Criteria of Performance and TSR component [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Restricted stock awards | 163,784 | |||||
Percentage of shares issuable based on target performance | 62.50% | |||||
2023 Long Term Incentive Plan | Restricted Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Performance criteria defined in share awards | The percentages, ranging from less than 80% to greater than or equal to 120% of the target amount of that EBITDA metric, provide for the awarding of shares ranging from 0% to 200% of the target amount of shares with respect to 37.5% of half of the 524,114 shares, or 98,273 shares. | |||||
2023 Long Term Incentive Plan | Restricted Stock [Member] | Executive and Non-Executive Employees [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares awarded subject to performance adjustment | 262,057 | |||||
Shares awarded subject to total shareholder return | 262,057 | |||||
Restricted stock awards | 524,114 | |||||
2023 Long Term Incentive Plan | Restricted Stock [Member] | Executive and Non-Executive Employees [Member] | Minimum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Performance percentage | 80% | |||||
Percentage of shares issuable based on target performance | 0% | |||||
2023 Long Term Incentive Plan | Restricted Stock [Member] | Executive and Non-Executive Employees [Member] | Maximum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Performance percentage | 120% | |||||
Percentage of shares issuable based on target performance | 200% | |||||
2023 Long Term Incentive Plan | Restricted Stock [Member] | Executive and Non-Executive Employees [Member] | EBITDA Criteria [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Restricted stock awards | 98,273 | |||||
Percentage of shares issuable based on target performance | 37.50% | |||||
2023 Long Term Incentive Plan | Restricted Stock [Member] | Executive and Non-Executive Employees [Member] | EBITDA Criteria of Performance and TSR component [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Percentage of shares issuable based on target performance | 62.50% | |||||
Weighted average fair value of common stock | $ 26.08 | |||||
2023 Long Term Incentive Plan | Restricted Stock [Member] | Executive and Non-Executive Employees [Member] | Company Performance Criteria [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Restricted stock awards | 262,057 | |||||
Weighted average fair value of common stock | $ 22.64 | |||||
2023 Long Term Incentive Plan | Restricted Stock [Member] | Executive and Non-Executive Employees [Member] | TSR Falls at 75th Percentile or Higher [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Percentage of additional performance shares to be received by grantee | 25% | |||||
2023 Long Term Incentive Plan | Restricted Stock [Member] | Executive and Non-Executive Employees [Member] | TSR Falls at 25th Percentile or Lower [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Percentage of performance shares to be forfeiture by grantee | 25% | |||||
Amended and Restated 2019 Equity and Incentive Compensation Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Common shares available for grant | 4,550,000 |
Stock Based Compensation - Summ
Stock Based Compensation - Summary of the Status of Restricted Share Awards (Detail) - Restricted Stock [Member] | 12 Months Ended |
Dec. 30, 2023 $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding at December 31, 2022 | shares | 1,268,258 |
Granted | shares | 1,064,169 |
Vested | shares | (767,734) |
Forfeited/Performance adjustment | shares | (418,164) |
Outstanding at December 30, 2023 | shares | 1,146,529 |
Weighted Average Fair Value, Outstanding Beginning balance | $ / shares | $ 18.75 |
Weighted Average Fair Value, Granted | $ / shares | 23.94 |
Weighted Average Fair Value, Vested | $ / shares | 18.86 |
Weighted Average Fair Value, Forfeited/Performance adjustment | $ / shares | 19.18 |
Weighted Average Fair Value, Outstanding Ending balance | $ / shares | $ 24.6 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Components of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Components of Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated other comprehensive income (loss), Beginning Balance | $ 628,015 | ||
Increase (decrease) in fair value of derivatives | (455) | $ (7,690) | $ 24,455 |
Amounts reclassified from accumulated other comprehensive earnings | 412 | (1,438) | (18,638) |
Tax effect | 11 | 2,345 | (1,531) |
Other comprehensive income (loss), net of tax | (32) | (6,783) | 4,286 |
Accumulated other comprehensive income (loss), Ending Balance | 659,867 | 628,015 | |
Accumulated Other Comprehensive Loss [Member] | |||
Components of Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated other comprehensive income (loss), Beginning Balance | 223 | 7,006 | 2,720 |
Other comprehensive income (loss), net of tax | (32) | (6,783) | 4,286 |
Accumulated other comprehensive income (loss), Ending Balance | 191 | 223 | 7,006 |
Aluminum Forward Contracts [Member] | |||
Components of Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Increase (decrease) in fair value of derivatives | (361) | (7,732) | 14,012 |
Amounts reclassified from accumulated other comprehensive earnings | 618 | 2,903 | (12,373) |
Tax effect | (66) | 1,219 | (432) |
Other comprehensive income (loss), net of tax | 191 | (3,610) | 1,207 |
Aluminum Forward Contracts [Member] | Accumulated Other Comprehensive Loss [Member] | |||
Components of Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated other comprehensive income (loss), Beginning Balance | 3,610 | 2,403 | |
Accumulated other comprehensive income (loss), Ending Balance | 191 | 3,610 | |
MTP Contracts [Member] | |||
Components of Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Increase (decrease) in fair value of derivatives | (94) | 42 | 10,443 |
Amounts reclassified from accumulated other comprehensive earnings | (206) | (4,341) | (6,265) |
Tax effect | 77 | 1,126 | (1,099) |
Other comprehensive income (loss), net of tax | (223) | (3,173) | 3,079 |
MTP Contracts [Member] | Accumulated Other Comprehensive Loss [Member] | |||
Components of Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated other comprehensive income (loss), Beginning Balance | $ 223 | 3,396 | 317 |
Accumulated other comprehensive income (loss), Ending Balance | $ 223 | $ 3,396 |
Segments - Additional Informati
Segments - Additional Information (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 USD ($) Segment | Dec. 31, 2022 USD ($) | Jan. 01, 2022 USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of reportable segments | Segment | 2 | ||
Depreciation expense | $ 35,991 | $ 34,048 | $ 30,487 |
Amortization expense | 26,307 | 26,150 | 21,082 |
Assets | 1,577,879 | 1,640,249 | |
Southeast Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Depreciation expense | 27,900 | 27,400 | 26,500 |
Amortization expense | 7,900 | 10,100 | 10,700 |
Assets | 899,700 | 909,600 | |
Western Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Depreciation expense | 8,100 | 6,700 | 4,000 |
Amortization expense | 18,400 | 16,000 | $ 10,400 |
Assets | $ 678,200 | $ 730,600 |
Segments - Summary of Financial
Segments - Summary of Financial Data Attributable to Operating Segments (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Net sales: | |||
Total net sales | $ 1,504,241 | $ 1,491,954 | $ 1,161,464 |
Income from operations: | |||
Total income from operations | 179,226 | 160,360 | 100,456 |
Impairment of trade name | (5,500) | (7,423) | |
Restructuring costs and charges | (1,722) | ||
Interest expense, net | 31,077 | 28,879 | 30,029 |
Debt extinguishment costs | 410 | 25,472 | |
Total income before income taxes | 148,149 | 131,071 | 44,955 |
Southeast Segment [Member] | |||
Net sales: | |||
Total net sales | 1,130,394 | 1,110,355 | 968,693 |
Income from operations: | |||
Total income from operations | 137,150 | 112,593 | 74,815 |
Western Segment [Member] | |||
Net sales: | |||
Total net sales | 373,847 | 381,599 | 192,771 |
Income from operations: | |||
Total income from operations | $ 49,298 | $ 55,190 | $ 25,641 |
Redeemable Non-Controlling In_3
Redeemable Non-Controlling Interest - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
May 26, 2023 | Feb. 01, 2021 | Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Redeemable Noncontrolling Interest [Line Items] | |||||
Accretion value of redeemable non-controlling interest | $ 34,721 | $ 36,863 | |||
ECO [Member] | |||||
Redeemable Noncontrolling Interest [Line Items] | |||||
Sellers equity interest call right exercise description | The agreement between PGT Innovations, Inc. and the seller provided the Company with a call right for seller’s equity interest during the third year following the acquisition date | ||||
Sellers equity interest put right exercise period following call right exercise period | 15 days | ||||
Eco Enterprises, LLC [Member] | |||||
Redeemable Noncontrolling Interest [Line Items] | |||||
Noncontrolling interest, ownership percentage by parent | 25% | 75% | 100% | ||
Redeemable noncontrolling interest value | $ 37,500 | ||||
Eco Enterprises, LLC [Member] | ECO [Member] | |||||
Redeemable Noncontrolling Interest [Line Items] | |||||
Sellers equity interest call right exercise purchase price description | Effective on May 26, 2023, the Company exercised its call-right to purchase the remaining 25% ownership stake in Eco it previously did not own. The redemption price of the remaining 25% was calculated by the Company pursuant to the operating agreement based on the performance metric included therein, and was determined to be $37.5 million, which was agreed with by the seller. Subsequent to this redemption, the Company's ownership of Eco Enterprises is now 100% |
Redeemable Non-Controlling In_4
Redeemable Non-Controlling Interest - Summary of Changes in Redeemable Non-Controlling Interest (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Noncontrolling Interest [Abstract] | |||
Balance at beginning of period | $ 34,721 | $ 36,863 | |
Net income attributable to RNCI | 1,101 | 1,523 | $ 2,318 |
Change in value of RNCI | 1,637 | (2,000) | 6,081 |
Distribution to non-controlling interest | (1,665) | ||
Redemption of RNCI | $ (37,459) | ||
Balance at end of period | $ 34,721 | $ 36,863 |
Restructuring Costs and Charg_2
Restructuring Costs and Charges, Net - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 30, 2023 | |
Restructuring Cost And Reserve [Line Items] | ||
Restructuring costs and charges, net | $ 1,722 | |
Gain of Forgiveness Portion of Operating Lease Liability by Landlord of the Charlotte, NC [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Restructuring costs and charges, net | $ (800) | |
Consideration of Lease Liability Forgiveness [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Restructuring costs and charges, net | 1,700 | |
Impairments of Right-of-use Assets of Leases of Raleigh-durham and Charlotte, North Carolina Showroom Facilities [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Restructuring costs and charges, net | 2,000 | |
Write-offs of Leasehold Improvements [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Restructuring costs and charges, net | $ 400 |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Details) - Subsequent Event [Member] - Miter Merger Agreement [Member] $ / shares in Units, $ in Millions | Jan. 17, 2024 USD ($) $ / shares |
Subsequent Event [Line Items] | |
Outstanding share, price per share | $ / shares | $ 42 |
Value of merger amount | $ 3,100 |
Percentage of purchase price of unaffected closing share price | 60% |
Merger agreement, termination fee | $ 84 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Detail) - Allowance for Doubtful Accounts [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | $ 13,656 | $ 4,702 | $ 3,716 |
Costs and expenses | 3,132 | 10,979 | 3,834 |
Deductions | (2,610) | (2,025) | (2,848) |
Balance at End of Period | $ 14,178 | $ 13,656 | $ 4,702 |