Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2021 | Aug. 03, 2021 | |
Cover [Abstract] | |||
Document Type | 10-Q | ||
Document Quarterly Report | true | ||
Document Period End Date | Jun. 30, 2021 | ||
Document Transition Report | false | ||
Entity File Number | 1-13429 | ||
Entity Registrant Name | SIMPSON MANUFACTURING CO INC /CA/ | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 94-3196943 | ||
Entity Address, Address | 5956 W. Las Positas Blvd. | ||
Entity Address, City or Town | Pleasanton | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 94588 | ||
City Area Code | 925 | ||
Local Phone Number | 560-9000 | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Title of 12(b) Security | Common Stock, par value $0.01 per share | ||
Trading Symbol | SSD | ||
Security Exchange Name | NYSE | ||
Entity Common Stock, Shares Outstanding | 43,439,655 | ||
Amendment Flag | false | ||
Document Fiscal Period Focus | Q1 | ||
Document Fiscal Year Focus | 2021 | ||
Entity Central Index Key | 0000920371 | ||
Current Fiscal Year End Date | --12-31 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 |
Current assets | |||
Cash and cash equivalents | $ 305,796 | $ 274,639 | $ 315,448 |
Trade accounts receivable, net | 249,931 | 165,128 | 233,867 |
Inventories | 310,254 | 283,742 | 265,365 |
Other current assets | 35,722 | 29,630 | 20,222 |
Total current assets | 901,703 | 753,139 | 834,902 |
Property, plant and equipment, net | 255,353 | 255,184 | 247,119 |
Operating lease right-of-use assets | 43,374 | 45,792 | 36,930 |
Goodwill | 134,121 | 135,844 | 132,335 |
Intangible assets, net | 23,749 | 26,800 | 22,139 |
Other noncurrent assets | 15,674 | 15,810 | 11,078 |
Total Assets | 1,373,974 | 1,232,569 | 1,284,503 |
Current liabilities | |||
Trade accounts payable | 60,268 | 48,271 | 49,149 |
Accrued liabilities and other current liabilities | 172,186 | 145,790 | 144,265 |
Total current liabilities | 232,454 | 194,061 | 193,414 |
Operating lease liabilities | 34,087 | 37,199 | 28,893 |
Long term debt, net of current portion | 0 | 0 | 150,000 |
Deferred income tax and other long-term liabilities | 20,528 | 20,366 | 17,984 |
Total liabilities | 287,069 | 251,626 | 390,291 |
Commitments and contingencies (see Note 13) | |||
Stockholders’ equity | |||
Common stock, at par value | 435 | 433 | 444 |
Additional paid-in capital | 289,261 | 284,007 | 277,625 |
Retained earnings | 822,497 | 720,441 | 716,038 |
Treasury stock | (13,510) | (13,510) | (72,058) |
Accumulated other comprehensive loss | (11,778) | (10,428) | (27,837) |
Total stockholders’ equity | 1,086,905 | 980,943 | 894,212 |
Total liabilities and stockholders’ equity | $ 1,373,974 | $ 1,232,569 | $ 1,284,503 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Statement [Abstract] | ||||
Net sales | $ 410,281 | $ 326,076 | $ 757,922 | $ 609,744 |
Cost of sales | 213,835 | 176,276 | 399,195 | 330,278 |
Gross profit | 196,446 | 149,800 | 358,727 | 279,466 |
Operating expenses: | ||||
Research and development and other engineering | 14,169 | 12,191 | 28,758 | 25,573 |
Selling | 33,167 | 26,834 | 63,990 | 55,361 |
General and administrative | 47,410 | 38,636 | 95,975 | 77,107 |
Total operating expenses | 94,746 | 77,661 | 188,723 | 158,041 |
Net gain on disposal of assets | (28) | (73) | (108) | (137) |
Income from operations | 101,728 | 72,212 | 170,112 | 121,562 |
Interest expense, net and other | (2,636) | (151) | (4,413) | (2,684) |
Income before taxes | 99,092 | 72,061 | 165,699 | 118,878 |
Provision for income taxes | 26,609 | 18,582 | 42,827 | 28,573 |
Net income | 72,483 | 53,479 | 122,872 | 90,305 |
Translation adjustment | 7,505 | 4,525 | (1,759) | (3,069) |
Unamortized pension adjustments | (102) | (213) | 390 | 61 |
Unrealized gains (losses) on derivative instruments | (7) | 0 | 19 | 0 |
Comprehensive net income | $ 79,879 | $ 57,791 | $ 121,522 | $ 87,297 |
Net income per common share: | ||||
Basic | $ 1.67 | $ 1.23 | $ 2.83 | $ 2.06 |
Diluted | $ 1.66 | $ 1.22 | $ 2.82 | $ 2.05 |
Number of shares outstanding | ||||
Basic | 43,434,000 | 43,471,000 | 43,406,000 | 43,787,000 |
Diluted | 43,641,000 | 43,663,000 | 43,620,000 | 43,980,000 |
Cash dividends declared per common share | $ 0.25 | $ 0.23 | $ 0.48 | $ 0.46 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock |
Balance at March 31, 2021 at Dec. 31, 2019 | $ 891,957,000 | $ 442,000 | $ 280,216,000 | $ 645,507,000 | $ (24,829,000) | $ (9,379,000) |
Balance (in shares) at Dec. 31, 2019 | 44,209 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 90,305,000 | 90,305,000 | ||||
Translation adjustment | (3,069,000) | (3,069,000) | ||||
Translation adjustment, net of tax | 61,000 | 61,000 | ||||
Unrealized gains (losses) on derivative instruments | 0 | |||||
Stock-based compensation | 4,830,000 | 4,830,000 | ||||
Shares issued from release of Restricted Stock Units | (7,741,000) | $ 2,000 | (7,743,000) | |||
Shares issued from release of Restricted Stock Units (in shares) | 162 | |||||
Repurchase of common stock | (62,679,000) | (62,679,000) | ||||
Repurchase of common stock (in shares) | (902) | |||||
Dividends, Common Stock, Cash | (19,774,000) | (19,774,000) | ||||
Common stock issued | 322,000 | 322,000 | ||||
Common stock issued (in shares) | 4 | |||||
Balance at Jun. 30, 2020 | 894,212,000 | $ 444,000 | 277,625,000 | 716,038,000 | (27,837,000) | (72,058,000) |
Balance (in shares) at Jun. 30, 2020 | 43,473 | |||||
Balance at March 31, 2021 at Mar. 31, 2020 | 841,594,000 | $ 444,000 | 272,872,000 | 672,485,000 | (32,149,000) | (72,058,000) |
Balance (in shares) at Mar. 31, 2020 | 43,464 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 53,479,000 | 53,479,000 | ||||
Translation adjustment | 4,525,000 | 4,525,000 | ||||
Translation adjustment, net of tax | (213,000) | (213,000) | ||||
Unrealized gains (losses) on derivative instruments | 0 | |||||
Stock-based compensation | 4,797,000 | 4,797,000 | ||||
Shares issued from release of Restricted Stock Units | (44,000) | $ 0 | (44,000) | |||
Shares issued from release of Restricted Stock Units (in shares) | 9 | |||||
Dividends, Common Stock, Cash | (9,926,000) | (9,926,000) | ||||
Balance at Jun. 30, 2020 | 894,212,000 | $ 444,000 | 277,625,000 | 716,038,000 | (27,837,000) | (72,058,000) |
Balance (in shares) at Jun. 30, 2020 | 43,473 | |||||
Balance at March 31, 2021 at Dec. 31, 2020 | 980,943,000 | $ 433,000 | 284,007,000 | 720,441,000 | (10,428,000) | (13,510,000) |
Balance (in shares) at Dec. 31, 2020 | 43,326 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 122,872,000 | 122,872,000 | ||||
Translation adjustment | (1,759,000) | (1,759,000) | ||||
Translation adjustment, net of tax | 409,000 | 409,000 | ||||
Unrealized gains (losses) on derivative instruments | 19,000 | |||||
Stock-based compensation | 9,826,000 | 9,826,000 | ||||
Shares issued from release of Restricted Stock Units | (5,262,000) | $ 1,000 | (5,263,000) | |||
Shares issued from release of Restricted Stock Units (in shares) | 104 | |||||
Common stock issued at $93.45 per share for stock bonus | 1,000 | |||||
Dividends, Common Stock, Cash | (20,816,000) | (20,816,000) | ||||
Common stock issued | 692,000 | 691,000 | ||||
Common stock issued (in shares) | 7 | |||||
Balance at Jun. 30, 2021 | 1,086,905,000 | $ 435,000 | 289,261,000 | 822,497,000 | (11,778,000) | (13,510,000) |
Balance (in shares) at Jun. 30, 2021 | 43,437 | |||||
Balance at March 31, 2021 at Mar. 31, 2021 | 1,014,509,000 | $ 435,000 | 285,896,000 | 760,862,000 | (19,174,000) | (13,510,000) |
Balance (in shares) at Mar. 31, 2021 | 43,430 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 72,483,000 | 72,483,000 | ||||
Translation adjustment | 7,505,000 | 7,505,000 | ||||
Translation adjustment, net of tax | (109,000) | (109,000) | ||||
Unrealized gains (losses) on derivative instruments | (7,000) | |||||
Stock-based compensation | 3,365,000 | 3,365,000 | ||||
Shares issued from release of Restricted Stock Units | 0 | $ 0 | 0 | |||
Shares issued from release of Restricted Stock Units (in shares) | 7 | |||||
Dividends, Common Stock, Cash | (10,848,000) | (10,848,000) | ||||
Balance at Jun. 30, 2021 | $ 1,086,905,000 | $ 435,000 | $ 289,261,000 | $ 822,497,000 | $ (11,778,000) | $ (13,510,000) |
Balance (in shares) at Jun. 30, 2021 | 43,437 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended |
Jun. 30, 2020 | Jun. 30, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends declared per common share | $ 0.23 | $ 0.48 |
Common stock issued per share for stock bonus (in USD per share) | $ 80.38 | $ 93.45 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Statement of Cash Flows [Abstract] | ||
Net income | $ 122,872 | $ 90,305 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Loss/(gain) on sale of assets and other | 118 | (147) |
Depreciation and amortization | 22,753 | 19,739 |
Noncash lease expense | 4,914 | 4,025 |
Loss in equity method investment, before tax | 2,653 | 0 |
Deferred income taxes | 1,144 | 1,973 |
Noncash compensation related to stock plans | 10,245 | 5,428 |
Provision of doubtful accounts | (377) | (35) |
Changes in operating assets and liabilities: | ||
Trade accounts receivable | (84,702) | (95,875) |
Inventories | (27,270) | (14,377) |
Trade accounts payable | 10,774 | 15,268 |
Other current assets | (14,802) | (4,529) |
Accrued liabilities and other current liabilities | 35,879 | 22,923 |
Other noncurrent assets and liabilities | (2,569) | (1,932) |
Net cash provided by operating activities | 81,632 | 42,766 |
Cash flows from investing activities | ||
Capital expenditures | (19,296) | (14,083) |
Asset acquisitions, net of cash acquired | (218) | 0 |
Equity method investments | (6,829) | 0 |
Proceeds from sale of property and equipment | 129 | 639 |
Net cash used in investing activities | (26,214) | (13,444) |
Cash flows from financing activities | ||
Repurchase of common stock | 0 | (62,679) |
Proceeds from lines of credit | 0 | 159,412 |
Repayments of lines of credit and capital leases | (384) | (10,387) |
Debt issuance costs | 0 | (712) |
Dividends paid | (19,956) | (20,158) |
Cash paid on behalf of employees for shares withheld | (5,263) | (7,743) |
Net cash provided by (used in) financing activities | (25,603) | 57,733 |
Effect of exchange rate changes on cash and cash equivalents | 1,342 | (1,817) |
Net increase in cash and cash equivalents | 31,157 | 85,238 |
Cash and cash equivalents at beginning of period | 274,639 | 230,210 |
Cash and cash equivalents at end of period | 305,796 | 315,448 |
Noncash activity during the period | ||
Noncash capital expenditures | 1,462 | 1,308 |
Dividends declared but not paid | 10,847 | 9,989 |
Issuance of Company’s common stock for compensation | $ 692 | $ 322 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of Simpson Manufacturing Co., Inc. and its subsidiaries (collectively, the “Company”). Investments in 50% or less owned entities are accounted for using either cost or the equity method. All significant intercompany transactions have been eliminated. Use of Estimates The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Management believes that these consolidated financial statements include all normal and recurring adjustments necessary for a fair presentation under GAAP. We assessed certain accounting matters that require the use of estimates and assumptions in context with the known and projected future impacts of COVID-19. The Company's actual results could differ materially from those estimates. Interim Reporting Period The accompanying unaudited quarterly condensed consolidated financial statements have been prepared pursuant to the rules and regulations for reporting on Form 10-Q. Accordingly, certain information and footnotes required by GAAP have been condensed or omitted. These interim statements should be read in conjunction with the audited consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020 (the “2020 Form 10-K”). The unaudited quarterly condensed consolidated financial statements have been prepared on the same basis as the audited annual consolidated financial statements and, in the opinion of management, contain all adjustments (consisting of only normal recurring adjustments) necessary to state fairly the financial information set forth therein in accordance with GAAP. Certain prior period amounts in the condensed consolidated financial statements and the accompanying notes have been reclassified to conform to the current period’s presentation. The year-end condensed consolidated balance sheet data provided herein were derived from audited financial statements included in the 2020 Form 10-K, but do not include all disclosures required by GAAP. The Company’s quarterly results fluctuate. As a result, the Company believes the results of operations for this interim period presented are not indicative of the results to be expected for any future periods. Revenue Recognition Generally, the Company’s revenue contract with a customer exists when goods are shipped, and services (if any) are rendered; and its related invoice is generated. The duration of the contract does not extend beyond the promised goods or services already transferred. The transaction price of each distinct promised product or service specified in the invoice is based on its relative stated standalone selling price. The Company recognizes revenue when it satisfies a performance obligation by transferring control over a product to a customer at a point in time. The Company’s shipping terms provide the primary indicator of the transfer of control. The Company’s general shipping terms are F.O.B. shipping point, where title and risk and rewards of ownership transfer at the point when the products leave the Company’s warehouse. The Company recognizes revenue based on the consideration specified in the invoice with a customer, excluding any sales incentives, discounts, and amounts collected on behalf of third parties (i.e., governmental tax authorities). Based on historical experience with the customer, the customer's purchasing pattern and its significant experience selling products, the Company concluded that a significant reversal in the cumulative amount of revenue recognized will not occur when the uncertainty (if any) is resolved (that is, when the total amount of purchases is known). Refer to Note 2 for additional information. Net Income Per Common Share The Company calculates net income per common share based on the weighted-average number of shares of the Company's common stock outstanding during the period. Potentially dilutive securities are included in the diluted per-share calculations using the treasury stock method for all periods when the effect is dilutive. Accounting for Leases The Company has operating leases for certain facilities, equipment, and autos. As an accounting policy for short-term leases, the Company elected to not recognize the right-of-use asset and liability, if, at the commencement date, the lease (1) has a term of 12 months or less and (2) does not include renewal and purchase options that the Company is reasonably certain to exercise. Monthly payments on short-term leases are recognized on the straight-line basis over the full lease term. Accounting for Stock-Based Compensation The Company recognizes stock-based compensation expense related to the estimated fair value of restricted stock awards on a straight-line basis, net of estimated forfeitures, over the requisite service period of the awards, which is generally the vesting term of four years. Stock-based expense related to performance share grants are measured based on grant date fair value and expensed on a graded basis over the service period of the awards, which is generally a performance period of three years. The performance conditions are based on the Company's achievement of revenue growth and return on invested capital over the performance period, and are evaluated for the probability of vesting at each reporting period end with changes in expected results recognized as an adjustment to expense. The assumptions used to calculate the fair value of restricted stock grants are evaluated and revised, as necessary, to reflect market conditions and the Company’s experience. Fair Value of Financial Instruments Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that is determined based on assumptions that market participants would use in pricing an asset or a liability. Assets and liabilities recorded at fair value are measured and classified under a three-tier fair valuation hierarchy based on the observability of the inputs available in the market: Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument; and Level 3 inputs are unobservable inputs based on the Company’s assumptions used to measure assets and liabilities at fair value. The fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The carrying amounts of trade accounts receivable, accounts payable, accrued liabilities and other current liabilities approximate fair value due to the short-term nature of these instruments. The fair value of the Company’s contingent consideration related to acquisitions and equity investment are classified as Level 3 within the fair value hierarchy as it is based on unobserved inputs such as management estimates and entity-specific assumptions and is evaluated on an ongoing basis. The fair value of foreign currency forward contracts, calculated based on Level 1 inputs, was not material as of June 30, 2021. Derivative Instruments - Foreign Currency Contracts The Company uses derivative instruments as a risk management tool to mitigate the potential impact of certain market risks. Foreign currency exchange rate risk is the primary market risk the Company manages through the use of derivative instruments, which are accounted for as cash flow hedges under the accounting standards and carried at fair value as other current assets or other current liabilities in the consolidated balance sheets. Net deferred gains and losses related to changes in fair value are included in accumulated other comprehensive loss, a component of shareholders' equity in the consolidated balance sheets, and are reclassified into the line item in the consolidated statement of income in which the hedged items are recorded in the same period the hedged item affects earnings. Changes in fair value of any derivatives that are determined to be ineffective are immediately reclassified from other comprehensive income into earnings. The cash flow impact of the Company's derivative instruments is primarily included in the consolidated statement of cash flows in net cash provided by operating activities. Refer to Note 8. Cash and Cash Equivalents The Company classifies investments that are highly liquid and have maturities of three months or less at the date of purchase as cash equivalents. As of June 30, 2021 and 2020, the value of these investments were $57.1 million and $76.9 million, respectively, consisting of U.S. Treasury securities and money market funds. The value of the investments is based on cost, which approximates fair value based on Level 1 inputs. Current Estimated Credit Loss - Allowance for doubtful accounts The Company maintains an allowance for doubtful accounts receivable for estimated future expected credit losses resulting from customers' failure to make payments on its accounts receivable. The Company determines the estimate of the allowance for doubtful accounts receivable by considering several factors, including (1) specific information on the financial condition and the current creditworthiness of customers, (2) credit rating, (3) payment history and historical experience, (4) aging of the accounts receivable, and (5) reasonable and supportable forecasts about collectability. The Company also reserves 100% of the amounts deemed uncollectible due to a customer's deteriorating financial condition or bankruptcy. Every quarter, the Company evaluates the customer group using the accounts receivable aging report and its best judgment when considering changes in customers' credit ratings, level of delinquency, customers' historical payments and loss experience, current market and economic conditions, and expectations of future market and economic conditions. The changes in the allowance for doubtful accounts receivable for the year ended June 30, 2021 are outlined in the table below: Balance at Balance at (in thousands) December 31, 2020 Expense (Deductions), net Write-Offs 1 June 30, 2021 Allowance for Doubtful Accounts $ 2,110 (377) 287 $ 1,446 1 Amount is net of recoveries and the effect of foreign currency fluctuations for the year ended June 30, 2021. Income Taxes The Company uses an estimated annual tax rate to measure the tax benefit or tax expense recognized in each interim period. Accounting Standards Not Yet Adopted In March 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2020-04, Reference Rate Reform (Topic 848). ASU 2020-04 provides optional guidance to ease the potential burden in accounting for reference rate reform on financial reporting in response to the risk of cessation of the London Interbank Offered Rate (“LIBOR”) on December 31, 2021. The ASU allows the option to account for and present a modification that meets the scope of the standard as an event that does not require contract remeasurement at the modification date or reassessment of a previous accounting determination required under the relevant topic or subtopic. Entities are permitted to apply the amendments to all contracts, cash flow and net investment hedge relationships that exist as of March 12, 2020. The relief provided in this ASU is only available for a limited time, generally through December 31, 2022. The Company's primary credit facility is the $300 million revolving line of credit (the "Credit Facility") with Wells Fargo Bank, which matures on July 12, 2026. Borrowings under the Credit Facility bear interest using LIBOR plus an applicable margin. The Credit Facility currently includes a provision for the determination of a successor LIBOR rate or an alternative rate of interest. On March 5, 2021, ICE Benchmark Administration, the administrator of the LIBOR and the Financial Conduct Authority, announced some USD LIBOR tenors (overnight, 1 month, 3 month, and 12 month) will continue to be published until June 30, 2023. We do not expect a material impact to our consolidated operating results, financial position or cash flow from the transition from LIBOR to alternative reference interest rates, but we will continue to monitor the impact of the transition until it is completed. All issued and effective accounting standards during the second quarter of 2021 were determined to be not relevant or material to the Company. |
Revenue from Contract with Cust
Revenue from Contract with Customer Revenue from Contract with Customer | 6 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer | Revenue from Contracts with Customers Disaggregated revenue The Company disaggregates net sales into the following major product groups as described in the footnote for segment information included in these interim financial statements under Note 14. Wood Construction Products Revenue . Wood construction products represented 87% and 86% of total net sales in the six months ended June 30, 2021 and 2020, respectively. Concrete Construction Products Revenue. Concrete construction products represented 13% and 14% of total net sales in the six months ended June 30, 2021 and 2020, respectively. Customer acceptance criteria. Generally, there are no customer acceptance criteria included in the Company's standard sales agreement with customers. When an arrangement with the customer does not meet the criteria to be accounted for as a revenue contract under the standard, the Company recognizes revenue in the amount of nonrefundable consideration received when the Company has transferred control of the goods or services and has stopped transferring (and has no obligation to transfer) additional goods or services. The Company offers certain customers discounts for paying invoices ahead of the due date, which are generally between 30 to 60 days after the issue date. Other revenue . Service sales, representing after-market repair and maintenance, engineering activities and software license sales and services were less than 1.0% of net sales and recognized as the services are completed or by transferring control over a product to a customer at a point in time. Services may be sold separately or in bundled packages. The typical contract length for a service is generally less than one year. For bundled packages, the Company accounts for individual services separately when they are distinct within the context of the contract. A distinct service is separately identifiable from other items in the bundled package if a customer can benefit from the service on its own or with other resources that are readily available to the customer. The consideration (including any discounts) is allocated between separate services in a bundle based on their relative stand-alone selling prices. The stand-alone selling prices are determined based on the prices at which the Company separately sells the services. Reconciliation of contract balances Contract assets are the rights to consideration in exchange for goods or services that the Company has transferred to a customer when that right is conditional on something other than the passage of time. Contract liabilities are recorded for any services billed to customers and not yet recognizable if the contract period has commenced or for the amount collected from customers in advance of the contract period commencing. As of June 30, 2021, the Company had no contract assets or contract liabilities from contracts with customers . |
Net income Per Share (Notes)
Net income Per Share (Notes) | 3 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | 3. Net Income Per Share The following table reconciles basic net income per share of the Company's common stock to diluted net income per share for the three and six months ended June 30, 2021 and 2020, respectively: Three Months Ended Six Months Ended (in thousands, except per share amounts) 2021 2020 2021 2020 Net income available to common stockholders $ 72,483 $ 53,479 $ 122,872 $ 90,305 Basic weighted-average shares outstanding 43,434 43,471 43,406 43,787 Dilutive effect of potential common stock equivalents — restricted stock units 207 192 214 193 Diluted weighted-average shares outstanding 43,641 43,663 43,620 43,980 Net income per common share: Basic $ 1.67 $ 1.23 $ 2.83 $ 2.06 Diluted $ 1.66 $ 1.22 $ 2.82 $ 2.05 |
Stockholders' Equity Stockholde
Stockholders' Equity Stockholders' Equity | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity Treasury Shares As of June 30, 2021, the Company held 150,974 shares of its common stock as treasury shares. |
Stock-Based Compensation Stock-
Stock-Based Compensation Stock-Based Compensation | 3 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Company allocates stock-based compensation expense related to equity plans for employees and non-employee directors among the cost of sales, research and development and other engineering expense, selling expense, or general and administrative expense based on the job functions performed by the employees or non-employee directors to whom the stock-based compensation is awarded. The Company recognized stock-based compensation expense related to its equity plans for employees of $3.3 million and $5.2 million for the three months June 30, 2021 and 2020, respectively, and $9.8 million and $5.4 million for the six months ended June 30, 2021 and 2020. During the six months ended June 30, 2021, the Company granted 133,717 restricted stock units ("RSUs") to the Company's employees, including officers at an estimated weighted average fair value of $100.93 per share based on the closing price (adjusted for the present value of dividends) of the Company's common stock on the grant date. The RSUs granted to the Company's employees may be performance-based and/or time-based. Certain performance-based RSUs are granted to officers and key employees, where the number of performance-based awards to be issued is based on the achievement of certain Company performance criteria established in the RSU agreement over a cumulative three-year period. These awards cliff vest after three years. In addition, these same officers and key employees also receive time-based RSUs, which vest pursuant to a three-year graded vesting schedule. Time-based RSUs that are granted to the Company's employees excluding officers and certain key employees, vest ratably over the four year vesting-term of the award. The Company’s seven non-employee directors are entitled to receive approximately $690 thousand in equity compensation annually. The number of shares ultimately granted are based on the average closing share price for the Company over the 60 day period prior to approval of the award in the second quarter of each year. In May and June 2021, the Company granted 6,601 shares of the Company's common stock to the non-employee directors, based on the average closing price of $114.60 per share and recognized a total expense of $756 thousand. |
Trade Accounts Receivable, Net
Trade Accounts Receivable, Net | 3 Months Ended |
Jun. 30, 2021 | |
Receivables [Abstract] | |
Trade Accounts Receivable, Net | Trade Accounts Receivable, Net Trade accounts receivable at the dates indicated consisted of the following: At June 30, At December 31, (in thousands) 2021 2020 2020 Trade accounts receivable $ 255,077 $ 239,220 $ 170,001 Allowance for doubtful accounts (1,446) (2,007) (2,110) Allowance for sales discounts and returns (3,700) (3,346) (2,763) $ 249,931 $ 233,867 $ 165,128 |
Inventories
Inventories | 3 Months Ended |
Jun. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories at the dates indicated consisted of the following: At June 30, At December 31, (in thousands) 2021 2020 2020 Raw materials $ 101,163 $ 110,883 $ 95,777 In-process products 24,117 18,661 21,803 Finished products 184,974 135,821 166,162 $ 310,254 $ 265,365 $ 283,742 |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 3 Months Ended |
Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, Net | Property, Plant and Equipment, Net Property, plant and equipment, net, at the dates indicated consisted of the following: At June 30, At December 31, (in thousands) 2021 2020 2020 Land $ 28,373 $ 28,068 $ 28,553 Buildings and site improvements 202,573 200,205 203,421 Leasehold improvements 5,961 5,817 7,091 Machinery, equipment, and software 392,860 359,997 372,923 629,767 594,087 611,988 Less accumulated depreciation and amortization (393,653) (360,719) (377,460) 236,114 233,368 234,528 Capital projects in progress 19,239 13,751 20,656 Total $ 255,353 $ 247,119 $ 255,184 |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, Net | 6 Months Ended |
Jun. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets, Net | Goodwill and Intangible Assets, Net Goodwill at the dates indicated was as follows: At June 30, At December 31, (in thousands) 2021 2020 2020 North America $ 96,393 $ 96,099 $ 96,311 Europe 36,296 34,929 38,059 Asia/Pacific 1,432 1,307 1,474 Total $ 134,121 $ 132,335 $ 135,844 Intangible assets, net, at the dates indicated were as follows: At June 30, 2021 Gross Net Carrying Accumulated Carrying (in thousands) Amount Amortization Amount North America $ 41,003 $ (24,715) $ 16,288 Europe 26,499 (19,038) 7,461 Total $ 67,502 $ (43,753) $ 23,749 At June 30, 2020 Gross Net (in thousands) Carrying Accumulated Carrying North America $ 33,755 $ (20,898) $ 12,857 Europe 25,582 (16,300) 9,282 Total $ 59,337 $ (37,198) $ 22,139 At December 31, 2020 Gross Net (in thousands) Carrying Accumulated Carrying North America $ 40,786 $ (22,697) $ 18,089 Europe 26,341 (17,630) 8,711 Total $ 67,127 $ (40,327) $ 26,800 Intangible assets consist of definite-lived and indefinite-lived assets. Definite-lived intangible assets include customer relationships, patents, unpatented technology, and non-compete agreements. Amortization expense of definite-lived intangible assets was $1.7 million and $1.6 million for the three months ended June 30, 2021 and 2020, respectively, and was $3.4 million and $3.0 million for the six months ended June 30, 2021 and 2020, respectively. The weighted-average amortization period for all amortizable intangibles on a combined basis is 6.4 years. The only indefinite-lived intangible asset, consisting of a trade name, totaled $0.6 million at June 30, 2021. At June 30, 2021, the estimated future amortization of definite-lived intangible assets was as follows: (in thousands) Remaining six months of 2021 $ 3,157 2022 4,339 2023 3,514 2024 2,462 2025 2,233 2026 1,492 Thereafter 5,936 $ 23,133 The changes in the carrying amount of goodwill and intangible assets for the six months ended June 30, 2021, were as follows: Intangible (in thousands) Goodwill Assets Balance at December 31, 2020 $ 135,844 $ 26,800 Acquisitions — 218 Reclassifications (106) 348 Amortization — (3,426) Foreign exchange (1,617) (191) Balance at June 30, 2021 $ 134,121 $ 23,749 |
Leases Leases
Leases Leases | 3 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Leases | 11. Leases Operating Lease Obligations The Company has operating leases for certain facilities, equipment and autos. The existing operating leases expire at various dates through 2025, some of which include options to extend the leases for up to 5 years. The Company measured the lease liability at the present value of the lease payments to be made over the lease term. The lease payments are discounted using the Company's incremental borrowing rate. The Company measured the right-of-use ("ROU") assets at the amount at which the lease liability is recognized plus initial direct costs incurred or prepayment amounts. The ROU assets are amortized on a straight-line basis over the lease term. The following table provides a summary of leases included on the condensed consolidated balance sheets as of June 30, 2021 and 2020 and December 31, 2020, condensed consolidated statements of earnings and comprehensive income, and condensed consolidated statements of cash flows as of three and six months ended June 30, 2021 and 2020: Condensed Consolidated Balance Sheets Line Item June 30, December 31, (in thousands) 2021 2020 2020 Operating leases Assets Operating leases Operating lease right-of-use assets $ 43,374 $ 36,930 $ 45,792 Liabilities Operating - current Accrued expenses and other current liabilities $ 9,777 $ 8,099 $ 9,143 Operating - noncurrent Operating lease liabilities 34,087 28,893 37,199 Total operating lease liabilities $ 43,864 $ 36,992 $ 46,342 Finance leases Assets Property and equipment, gross Property, plant and equipment, net $ 3,569 $ 3,569 $ 3,569 Accumulated amortization Property, plant and equipment, net (3,264) (2,953) (3,112) Property and equipment, net Property, plant and equipment, net $ 305 $ 616 $ 457 Liabilities Other current liabilities Accrued expenses and other current liabilities $ 48 $ 998 $ 384 Total finance lease liabilities $ 48 $ 998 $ 384 The components of lease expense were as follows: Condensed Consolidated Statements of Earnings and Comprehensive Income Line Item Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2021 2020 2021 2020 Operating lease cost General administrative expenses and $ 3,055 $ 2,625 $ 6,017 $ 5,051 Finance lease cost: Amortization of right-of-use General administrative expenses $ 107 $ 218 $ 214 $ 436 Interest on lease liabilities Interest expense, net 1 9 2 21 Total finance lease $ 108 $ 227 $ 216 $ 457 Other information Supplemental cash flow information related to leases as follows: Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2021 2020 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 2,994 $ 2,506 $ 5,905 $ 4,857 Finance cash flows for finance leases 146 290 292 580 Operating right-of-use assets obtained in exchange for lease 3,307 4,510 4,093 7,112 The following is a schedule, by years, of maturities of lease liabilities as of June 30, 2021: (in thousands) Finance Leases Operating Leases Remaining six months of 2021 $ 48 $ 5,807 2022 — 10,019 2023 — 7,640 2024 — 5,917 2025 — 5,364 Thereafter — 18,004 Total lease payments 48 52,751 Less: Present value discount — (8,887) Total lease liabilities $ 48 $ 43,864 The following table summarizes the Company's lease terms and discount rates as of June 30, 2021 and 2020: Weighted-average remaining lease terms (in years): 2021 2020 Operating leases 6.91 6.59 Finance leases 0 0.95 Weighted-average discount rate: Operating leases 5.28 % 5.36 % Finance leases 3.50 % 3.25 % |
Leases | Leases Operating Lease Obligations The Company has operating leases for certain facilities, equipment and autos. The existing operating leases expire at various dates through 2025, some of which include options to extend the leases for up to 5 years. The Company measured the lease liability at the present value of the lease payments to be made over the lease term. The lease payments are discounted using the Company's incremental borrowing rate. The Company measured the right-of-use ("ROU") assets at the amount at which the lease liability is recognized plus initial direct costs incurred or prepayment amounts. The ROU assets are amortized on a straight-line basis over the lease term. The following table provides a summary of leases included on the condensed consolidated balance sheets as of June 30, 2021 and 2020 and December 31, 2020, condensed consolidated statements of earnings and comprehensive income, and condensed consolidated statements of cash flows as of three and six months ended June 30, 2021 and 2020: Condensed Consolidated Balance Sheets Line Item June 30, December 31, (in thousands) 2021 2020 2020 Operating leases Assets Operating leases Operating lease right-of-use assets $ 43,374 $ 36,930 $ 45,792 Liabilities Operating - current Accrued expenses and other current liabilities $ 9,777 $ 8,099 $ 9,143 Operating - noncurrent Operating lease liabilities 34,087 28,893 37,199 Total operating lease liabilities $ 43,864 $ 36,992 $ 46,342 Finance leases Assets Property and equipment, gross Property, plant and equipment, net $ 3,569 $ 3,569 $ 3,569 Accumulated amortization Property, plant and equipment, net (3,264) (2,953) (3,112) Property and equipment, net Property, plant and equipment, net $ 305 $ 616 $ 457 Liabilities Other current liabilities Accrued expenses and other current liabilities $ 48 $ 998 $ 384 Total finance lease liabilities $ 48 $ 998 $ 384 The components of lease expense were as follows: Condensed Consolidated Statements of Earnings and Comprehensive Income Line Item Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2021 2020 2021 2020 Operating lease cost General administrative expenses and $ 3,055 $ 2,625 $ 6,017 $ 5,051 Finance lease cost: Amortization of right-of-use General administrative expenses $ 107 $ 218 $ 214 $ 436 Interest on lease liabilities Interest expense, net 1 9 2 21 Total finance lease $ 108 $ 227 $ 216 $ 457 Other information Supplemental cash flow information related to leases as follows: Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2021 2020 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 2,994 $ 2,506 $ 5,905 $ 4,857 Finance cash flows for finance leases 146 290 292 580 Operating right-of-use assets obtained in exchange for lease 3,307 4,510 4,093 7,112 The following is a schedule, by years, of maturities of lease liabilities as of June 30, 2021: (in thousands) Finance Leases Operating Leases Remaining six months of 2021 $ 48 $ 5,807 2022 — 10,019 2023 — 7,640 2024 — 5,917 2025 — 5,364 Thereafter — 18,004 Total lease payments 48 52,751 Less: Present value discount — (8,887) Total lease liabilities $ 48 $ 43,864 The following table summarizes the Company's lease terms and discount rates as of June 30, 2021 and 2020: Weighted-average remaining lease terms (in years): 2021 2020 Operating leases 6.91 6.59 Finance leases 0 0.95 Weighted-average discount rate: Operating leases 5.28 % 5.36 % Finance leases 3.50 % 3.25 % |
Debt Debt
Debt Debt | 3 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Debt As previously disclosed, the Credit Facility is the $300.0 million revolving line of credit with Wells Fargo Bank and is the Company's primary credit facility. I n addition to the Credit Facility, certain of the Company’s domestic subsidiaries are guarantors for a credit agreement between certain of its foreign subsidiaries and institutional lenders. Together, these credit facilities provide the Company with a total of $304.0 million in revolving credit lines and an irrevocable standby letter of credit in support of various insurance deductibles. There were no outstanding balances as of June 30, 2021 and December 31, 2020, respectively. The Company was in compliance with its financial covenants under the Credit Facility as of June 30, 2021. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Environmental The Company’s policy with regard to environmental liabilities is to accrue for future environmental assessments and remediation costs when information becomes available that indicates that it is probable that the Company is liable for any related claims and assessments and the amount of the liability is reasonably estimable. The Company does not believe that any such matters will have a material adverse effect on the Company’s financial condition, cash flows or results of operations. Litigation and Potential Claims From time to time, the Company is involved in various legal proceedings and other matters arising in the normal course of business. Corrosion, hydrogen embrittlement, cracking, material hardness, wood pressure-treating chemicals, misinstallations, misuse, design and assembly flaws, manufacturing defects, labeling defects, product formula defects, inaccurate chemical mixes, adulteration, environmental conditions, or other factors can contribute to failure of fasteners, connectors, anchors, adhesives, specialty chemicals, such as fiber reinforced polymers, and tool products. In addition, inaccuracies may occur in product information, descriptions and instructions found in catalogs, packaging, data sheets, and the Company’s website. The resolution of any claim or litigation is subject to inherent uncertainty and could have a material adverse effect on the Company’s financial condition, cash flows or results of operations. Gentry Homes, Ltd. v. Simpson Strong-Tie Company Inc., et al. , Case No. 17-cv-00566, was filed in a federal district court in Hawaii against Simpson Strong-Tie Company Inc. and the Company on November 20, 2017. The Gentry case is a product of a previous state court class action, Nishimura v. Gentry Homes, Ltd., et al. , Civil No. 11-1-1522-07, which is now closed. The Nishimura case concerned alleged corrosion of the Company’s galvanized “hurricane straps” and mudsill anchor products used in a residential project in Ewa by Gentry, Honolulu, Hawaii. In the Nishimura case, the plaintiff homeowners and the developer, Gentry Homes, Ltd. (“Gentry”), arbitrated their dispute and agreed on a settlement in the amount of approximately $90 million. In the subsequent Gentry case, Gentry alleges breach of warranty and negligent misrepresentation by the Company related to its “hurricane strap” and mudsill anchor products. At this time, the Company and the plaintiffs have reached a settlement in principle and are currently negotiating a definitive written agreement memorializing the settlement. Should the parties be unable to reach an accord on terms of the written agreement, further negotiations may take place that could result in a different settlement, or the case may continue on to trial. Based on the facts currently known, and subject to future events and circumstances, the Company believes that all or part of the damages for the claims brought against it in the Gentry case may be covered by its insurance policies. |
Segment Information
Segment Information | 3 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company is organized into three reporting segments defined by the regions where the Company’s products are manufactured, marketed and distributed to the Company’s customers. The three regional segments are the North America segment (comprised primarily of the Company’s operations in the U.S. and Canada), the Europe segment and the Asia/Pacific segment (comprised of the Company’s operations in Asia, the South Pacific, and the Middle East). These segments are similar in several ways, including the types of materials used, the production processes, the distribution channels and the product applications. The following tables illustrate certain measurements used by management to assess the performance of its reportable segments as of or for the following periods: Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2021 2020 2021 2020 Net Sales North America $ 350,557 $ 286,807 $ 651,120 $ 535,857 Europe 56,438 37,379 100,734 70,111 Asia/Pacific 3,286 1,890 6,068 3,776 Total $ 410,281 $ 326,076 $ 757,922 $ 609,744 Sales to Other Segments* North America $ 221 $ 671 $ 917 $ 1,311 Europe 1,551 1,308 3,160 2,562 Asia/Pacific 5,465 5,664 13,993 10,477 Total $ 7,237 $ 7,643 $ 18,070 $ 14,350 Income (Loss) from Operations North America $ 95,123 $ 72,196 $ 164,533 $ 125,757 Europe 5,873 2,696 8,164 1,026 Asia/Pacific 203 (75) 628 (679) Administrative and all other 529 (2,605) (3,213) (4,542) Total $ 101,728 $ 72,212 $ 170,112 $ 121,562 * Sales to other segments are eliminated in consolidation. At At June 30, December 31, (in thousands) 2021 2020 2020 Total Assets North America $ 1,189,835 $ 1,382,051 $ 1,059,967 Europe 205,065 169,757 198,647 Asia/Pacific 31,774 27,957 32,754 Administrative and all other (52,700) (295,262) (58,799) Total $ 1,373,974 $ 1,284,503 $ 1,232,569 Cash collected by the Company’s United States subsidiaries is routinely transferred into the Company’s cash management accounts and, therefore, has been included in the total assets of “Administrative and all other.” Cash and cash equivalent balances in the “Administrative and all other” segment were $238.3 million, $261.8 million, and $199.8 million, as of June 30, 2021 and 2020, and December 31, 2020, respectively. Total "Administrative and all other" assets are net of inter-segment due to and from accounts eliminated in consolidation. While the Company manages its business by geographic segment, the following table illustrates the distribution of the Company’s net sales by product group as additional information for the following periods: Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2021 2020 2021 2020 Wood construction products $ 355,787 $ 280,724 $ 657,365 $ 523,244 Concrete construction products 54,305 45,304 99,828 86,316 Other 189 48 729 184 Total $ 410,281 $ 326,076 $ 757,922 $ 609,744 Wood construction products include connectors, truss plates, fastening systems, fasteners and pre-fabricated shearwalls, and are used for connecting and strengthening wood-based construction primarily in the residential construction market. Concrete construction products include adhesives, chemicals, mechanical anchors, carbide drill bits, powder actuated tools and fiber reinforcing materials, and are used for restoration, protection or strengthening concrete, masonry and steel construction in residential, industrial, commercial and infrastructure construction. |
Subsequent Events Subsequent Ev
Subsequent Events Subsequent Events | 6 Months Ended |
Jun. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Dividend declared On July 14, 2021, the Company’s Board of Directors declared a quarterly cash dividend of $0.25 per share, estimated to be $10.8 million in total. The dividend will be payable on October 28, 2021, to the Company's stockholders of record on October 7, 2021. Credit Agreement |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 3 Months Ended |
Jun. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities Disclosure | Derivative Instruments The Company transacts business in various foreign countries and may therefore be exposed to foreign currency exchange rate risk. The Company has established risk management programs to protect against volatility in the value of non-functional future cash flows caused by changes in foreign currency exchange rates and tries to maintain a partial or fully hedged position for certain transaction exposures when management considers appropriate. The Company enters into short-term foreign currency derivatives contracts, namely forward contracts, to hedge only those currency exposures associated with cash flows denominated in non-functional currencies. Gains and losses on the Company's derivative contracts are designed to offset losses and gains on the transactions hedged, and accordingly, generally do not subject the Company to risk of significant accounting losses. The Company hedges committed exposures and does not engage in speculative transactions. The credit risk of these derivative contracts is minimized since the contracts are with a large financial institution and accordingly, fair value adjustments related to the credit risk of the counterparty financial institution are not material. The Company sources certain materials for its concrete products from a wholly owned subsidiary in China, and as a result is exposed to variability in cash outflows associated with changes in the foreign exchange rate between the U.S. Dollar and the Chinese Yuan (CNY). As of June 30, 2021, the aggregate notional amount of the Company's outstanding foreign currency derivative contracts was to buy CNY36.9 million by selling $5.4 million throughout fiscal 2021. These forward contracts are accounted for as cash flow hedges under the accounting standards, and fair value is included in other current assets or other current liabilities, as applicable, in the consolidated balance sheet was $0.2 million. Net deferred gains and losses on these contracts relating to changes in fair value are included in accumulated other comprehensive income or loss ("OCI"), a component of shareholders' equity in the consolidated balance sheets, and are reclassified into the line item in the consolidated statement of income in which the hedged items are recorded in the same period the hedged item affects earnings. For the six months ended June 30, 2021, gains on these contracts of $0.2 million was recognized, as a reduction of cost of sales. Changes in fair value of any forward contracts that are determined to be ineffective are immediately reclassified from OCI into earnings. The amounts deferred in OCI are expected to be recognized as a component of cost of sales in the consolidated statement of operations from 2021 to 2022. There were no amounts recognized due to ineffectiveness during the six months ended June 30, 2021. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2021 | Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Principles of Consolidation | Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of Simpson Manufacturing Co., Inc. and its subsidiaries (collectively, the “Company”). Investments in 50% or less owned entities are accounted for using either cost or the equity method. All significant intercompany transactions have been eliminated. | |
Use of Estimates, Policy | Use of Estimates The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Management believes that these consolidated financial statements include all normal and recurring adjustments necessary for a fair presentation under GAAP. We assessed certain accounting matters that require the use of estimates and assumptions in context with the known and projected future impacts of COVID-19. The Company's actual results could differ materially from those estimates. | |
Interim Period Reporting | Interim Reporting Period The accompanying unaudited quarterly condensed consolidated financial statements have been prepared pursuant to the rules and regulations for reporting on Form 10-Q. Accordingly, certain information and footnotes required by GAAP have been condensed or omitted. These interim statements should be read in conjunction with the audited consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020 (the “2020 Form 10-K”). The unaudited quarterly condensed consolidated financial statements have been prepared on the same basis as the audited annual consolidated financial statements and, in the opinion of management, contain all adjustments (consisting of only normal recurring adjustments) necessary to state fairly the financial information set forth therein in accordance with GAAP. Certain prior period amounts in the condensed consolidated financial statements and the accompanying notes have been reclassified to conform to the current period’s presentation. The year-end condensed consolidated balance sheet data provided herein were derived from audited financial statements included in the 2020 Form 10-K, but do not include all disclosures required by GAAP. The Company’s quarterly results fluctuate. As a result, the Company believes the results of operations for this interim period presented are not indicative of the results to be expected for any future periods. | |
Revenue Recognition | Revenue Recognition | |
Net Income Per Common Share | Net Income Per Common Share The Company calculates net income per common share based on the weighted-average number of shares of the Company's common stock outstanding during the period. Potentially dilutive securities are included in the diluted per-share calculations using the treasury stock method for all periods when the effect is dilutive. | |
Accounting for Leases | Accounting for Leases The Company has operating leases for certain facilities, equipment, and autos. As an accounting policy for short-term leases, the Company elected to not recognize the right-of-use asset and liability, if, at the commencement date, the lease (1) has a term of 12 months or less and (2) does not include renewal and purchase options that the Company is reasonably certain to exercise. Monthly payments on short-term leases are recognized on the straight-line basis over the full lease term. | |
Accounting for Stock-Based Compensation | Accounting for Stock-Based Compensation The Company recognizes stock-based compensation expense related to the estimated fair value of restricted stock awards on a straight-line basis, net of estimated forfeitures, over the requisite service period of the awards, which is generally the vesting term of four years. Stock-based expense related to performance share grants are measured based on grant date fair value and expensed on a graded basis over the service period of the awards, which is generally a performance period of three years. The performance conditions are based on the Company's achievement of revenue growth and return on invested capital over the performance period, and are evaluated for the probability of vesting at each reporting period end with changes in expected results recognized as an adjustment to expense. The assumptions used to calculate the fair value of restricted stock grants are evaluated and revised, as necessary, to reflect market conditions and the Company’s experience. | |
Equity Investments | ||
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that is determined based on assumptions that market participants would use in pricing an asset or a liability. Assets and liabilities recorded at fair value are measured and classified under a three-tier fair valuation hierarchy based on the observability of the inputs available in the market: Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument; and Level 3 inputs are unobservable inputs based on the Company’s assumptions used to measure assets and liabilities at fair value. The fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The carrying amounts of trade accounts receivable, accounts payable, accrued liabilities and other current liabilities approximate fair value due to the short-term nature of these instruments. The fair value of the Company’s contingent consideration related to acquisitions and equity investment are classified as Level 3 within the fair value hierarchy as it is based on unobserved inputs such as management estimates and entity-specific assumptions and is evaluated on an ongoing basis. The fair value of foreign currency forward contracts, calculated based on Level 1 inputs, was not material as of June 30, 2021. | |
Derivative Instruments - Foreign Currency Contracts | Derivative Instruments - Foreign Currency Contracts The Company uses derivative instruments as a risk management tool to mitigate the potential impact of certain market risks. Foreign currency exchange rate risk is the primary market risk the Company manages through the use of derivative instruments, which are accounted for as cash flow hedges under the accounting standards and carried at fair value as other current assets or other current liabilities in the consolidated balance sheets. Net deferred gains and losses related to changes in fair value are included in accumulated other comprehensive loss, a component of shareholders' equity in the consolidated balance sheets, and are reclassified into the line item in the consolidated statement of income in which the hedged items are recorded in the same period the hedged item affects earnings. Changes in fair value of any derivatives that are determined to be ineffective are immediately reclassified from other comprehensive income into earnings. The cash flow impact of the Company's derivative instruments is primarily included in the consolidated statement of cash flows in net cash provided by operating activities. Refer to Note 8. | |
Cash and Cash Equivalents | Cash and Cash EquivalentsThe Company classifies investments that are highly liquid and have maturities of three months or less at the date of purchase as cash equivalents. As of June 30, 2021 and 2020, the value of these investments were $57.1 million and $76.9 million, respectively, consisting of U.S. Treasury securities and money market funds. The value of the investments is based on cost, which approximates fair value based on Level 1 inputs | |
Receivables, Trade and Other Accounts Receivable, Allowance for Doubtful Accounts, Policy | Current Estimated Credit Loss - Allowance for doubtful accounts The Company maintains an allowance for doubtful accounts receivable for estimated future expected credit losses resulting from customers' failure to make payments on its accounts receivable. The Company determines the estimate of the allowance for doubtful accounts receivable by considering several factors, including (1) specific information on the financial condition and the current creditworthiness of customers, (2) credit rating, (3) payment history and historical experience, (4) aging of the accounts receivable, and (5) reasonable and supportable forecasts about collectability. The Company also reserves 100% of the amounts deemed uncollectible due to a customer's deteriorating financial condition or bankruptcy. Every quarter, the Company evaluates the customer group using the accounts receivable aging report and its best judgment when considering changes in customers' credit ratings, level of delinquency, customers' historical payments and loss experience, current market and economic conditions, and expectations of future market and economic conditions. The changes in the allowance for doubtful accounts receivable for the year ended June 30, 2021 are outlined in the table below: Balance at Balance at (in thousands) December 31, 2020 Expense (Deductions), net Write-Offs 1 June 30, 2021 Allowance for Doubtful Accounts $ 2,110 (377) 287 $ 1,446 1 Amount is net of recoveries and the effect of foreign currency fluctuations for the year ended June 30, 2021. | |
Income Taxes | Income Taxes The Company uses an estimated annual tax rate to measure the tax benefit or tax expense recognized in each interim period. | |
Recently Adopted Accounting Standards and Recently Issued Accounting Standards Not Yet Adopted | Accounting Standards Not Yet Adopted In March 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2020-04, Reference Rate Reform (Topic 848). ASU 2020-04 provides optional guidance to ease the potential burden in accounting for reference rate reform on financial reporting in response to the risk of cessation of the London Interbank Offered Rate (“LIBOR”) on December 31, 2021. The ASU allows the option to account for and present a modification that meets the scope of the standard as an event that does not require contract remeasurement at the modification date or reassessment of a previous accounting determination required under the relevant topic or subtopic. Entities are permitted to apply the amendments to all contracts, cash flow and net investment hedge relationships that exist as of March 12, 2020. The relief provided in this ASU is only available for a limited time, generally through December 31, 2022. The Company's primary credit facility is the $300 million revolving line of credit (the "Credit Facility") with Wells Fargo Bank, which matures on July 12, 2026. Borrowings under the Credit Facility bear interest using LIBOR plus an applicable margin. The Credit Facility currently includes a provision for the determination of a successor LIBOR rate or an alternative rate of interest. On March 5, 2021, ICE Benchmark Administration, the administrator of the LIBOR and the Financial Conduct Authority, announced some USD LIBOR tenors (overnight, 1 month, 3 month, and 12 month) will continue to be published until June 30, 2023. We do not expect a material impact to our consolidated operating results, financial position or cash flow from the transition from LIBOR to alternative reference interest rates, but we will continue to monitor the impact of the transition until it is completed. All issued and effective accounting standards during the second quarter of 2021 were determined to be not relevant or material to the Company. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 3 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Accounts Receivable, Allowance for Credit Loss | The changes in the allowance for doubtful accounts receivable for the year ended June 30, 2021 are outlined in the table below: Balance at Balance at (in thousands) December 31, 2020 Expense (Deductions), net Write-Offs 1 June 30, 2021 Allowance for Doubtful Accounts $ 2,110 (377) 287 $ 1,446 1 Amount is net of recoveries and the effect of foreign currency fluctuations for the year ended June 30, 2021. |
Net income Per Share (Tables)
Net income Per Share (Tables) | 3 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The following table reconciles basic net income per share of the Company's common stock to diluted net income per share for the three and six months ended June 30, 2021 and 2020, respectively: Three Months Ended Six Months Ended (in thousands, except per share amounts) 2021 2020 2021 2020 Net income available to common stockholders $ 72,483 $ 53,479 $ 122,872 $ 90,305 Basic weighted-average shares outstanding 43,434 43,471 43,406 43,787 Dilutive effect of potential common stock equivalents — restricted stock units 207 192 214 193 Diluted weighted-average shares outstanding 43,641 43,663 43,620 43,980 Net income per common share: Basic $ 1.67 $ 1.23 $ 2.83 $ 2.06 Diluted $ 1.66 $ 1.22 $ 2.82 $ 2.05 |
Trade Accounts Receivable, Net
Trade Accounts Receivable, Net (Tables) | 3 Months Ended |
Jun. 30, 2021 | |
Receivables [Abstract] | |
Schedule of trade accounts receivable, net | Trade accounts receivable at the dates indicated consisted of the following: At June 30, At December 31, (in thousands) 2021 2020 2020 Trade accounts receivable $ 255,077 $ 239,220 $ 170,001 Allowance for doubtful accounts (1,446) (2,007) (2,110) Allowance for sales discounts and returns (3,700) (3,346) (2,763) $ 249,931 $ 233,867 $ 165,128 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Jun. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of carrying values of inventories | Inventories at the dates indicated consisted of the following: At June 30, At December 31, (in thousands) 2021 2020 2020 Raw materials $ 101,163 $ 110,883 $ 95,777 In-process products 24,117 18,661 21,803 Finished products 184,974 135,821 166,162 $ 310,254 $ 265,365 $ 283,742 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 3 Months Ended |
Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant and equipment | Property, plant and equipment, net, at the dates indicated consisted of the following: At June 30, At December 31, (in thousands) 2021 2020 2020 Land $ 28,373 $ 28,068 $ 28,553 Buildings and site improvements 202,573 200,205 203,421 Leasehold improvements 5,961 5,817 7,091 Machinery, equipment, and software 392,860 359,997 372,923 629,767 594,087 611,988 Less accumulated depreciation and amortization (393,653) (360,719) (377,460) 236,114 233,368 234,528 Capital projects in progress 19,239 13,751 20,656 Total $ 255,353 $ 247,119 $ 255,184 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets, Net (Tables) | 3 Months Ended |
Jun. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill, by segment | Goodwill at the dates indicated was as follows: At June 30, At December 31, (in thousands) 2021 2020 2020 North America $ 96,393 $ 96,099 $ 96,311 Europe 36,296 34,929 38,059 Asia/Pacific 1,432 1,307 1,474 Total $ 134,121 $ 132,335 $ 135,844 |
Schedule of net intangible assets, by segment | Intangible assets, net, at the dates indicated were as follows: At June 30, 2021 Gross Net Carrying Accumulated Carrying (in thousands) Amount Amortization Amount North America $ 41,003 $ (24,715) $ 16,288 Europe 26,499 (19,038) 7,461 Total $ 67,502 $ (43,753) $ 23,749 At June 30, 2020 Gross Net (in thousands) Carrying Accumulated Carrying North America $ 33,755 $ (20,898) $ 12,857 Europe 25,582 (16,300) 9,282 Total $ 59,337 $ (37,198) $ 22,139 At December 31, 2020 Gross Net (in thousands) Carrying Accumulated Carrying North America $ 40,786 $ (22,697) $ 18,089 Europe 26,341 (17,630) 8,711 Total $ 67,127 $ (40,327) $ 26,800 |
Schedule of estimated future amortization of intangible assets | At June 30, 2021, the estimated future amortization of definite-lived intangible assets was as follows: (in thousands) Remaining six months of 2021 $ 3,157 2022 4,339 2023 3,514 2024 2,462 2025 2,233 2026 1,492 Thereafter 5,936 $ 23,133 |
Changes in the carrying amount of goodwill and intangible assets | The changes in the carrying amount of goodwill and intangible assets for the six months ended June 30, 2021, were as follows: Intangible (in thousands) Goodwill Assets Balance at December 31, 2020 $ 135,844 $ 26,800 Acquisitions — 218 Reclassifications (106) 348 Amortization — (3,426) Foreign exchange (1,617) (191) Balance at June 30, 2021 $ 134,121 $ 23,749 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Jun. 30, 2021 | |
Lease, Cost [Abstract] | |
Balance Sheet Information | The following table provides a summary of leases included on the condensed consolidated balance sheets as of June 30, 2021 and 2020 and December 31, 2020, condensed consolidated statements of earnings and comprehensive income, and condensed consolidated statements of cash flows as of three and six months ended June 30, 2021 and 2020: Condensed Consolidated Balance Sheets Line Item June 30, December 31, (in thousands) 2021 2020 2020 Operating leases Assets Operating leases Operating lease right-of-use assets $ 43,374 $ 36,930 $ 45,792 Liabilities Operating - current Accrued expenses and other current liabilities $ 9,777 $ 8,099 $ 9,143 Operating - noncurrent Operating lease liabilities 34,087 28,893 37,199 Total operating lease liabilities $ 43,864 $ 36,992 $ 46,342 Finance leases Assets Property and equipment, gross Property, plant and equipment, net $ 3,569 $ 3,569 $ 3,569 Accumulated amortization Property, plant and equipment, net (3,264) (2,953) (3,112) Property and equipment, net Property, plant and equipment, net $ 305 $ 616 $ 457 Liabilities Other current liabilities Accrued expenses and other current liabilities $ 48 $ 998 $ 384 Total finance lease liabilities $ 48 $ 998 $ 384 |
Lease, Cost | The components of lease expense were as follows: Condensed Consolidated Statements of Earnings and Comprehensive Income Line Item Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2021 2020 2021 2020 Operating lease cost General administrative expenses and $ 3,055 $ 2,625 $ 6,017 $ 5,051 Finance lease cost: Amortization of right-of-use General administrative expenses $ 107 $ 218 $ 214 $ 436 Interest on lease liabilities Interest expense, net 1 9 2 21 Total finance lease $ 108 $ 227 $ 216 $ 457 Other information Supplemental cash flow information related to leases as follows: Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2021 2020 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 2,994 $ 2,506 $ 5,905 $ 4,857 Finance cash flows for finance leases 146 290 292 580 Operating right-of-use assets obtained in exchange for lease 3,307 4,510 4,093 7,112 The following table summarizes the Company's lease terms and discount rates as of June 30, 2021 and 2020: Weighted-average remaining lease terms (in years): 2021 2020 Operating leases 6.91 6.59 Finance leases 0 0.95 Weighted-average discount rate: Operating leases 5.28 % 5.36 % Finance leases 3.50 % 3.25 % |
Operating Lease, Liability, Maturity | The following is a schedule, by years, of maturities of lease liabilities as of June 30, 2021: (in thousands) Finance Leases Operating Leases Remaining six months of 2021 $ 48 $ 5,807 2022 — 10,019 2023 — 7,640 2024 — 5,917 2025 — 5,364 Thereafter — 18,004 Total lease payments 48 52,751 Less: Present value discount — (8,887) Total lease liabilities $ 48 $ 43,864 |
Finance Lease, Liability, Maturity | The following is a schedule, by years, of maturities of lease liabilities as of June 30, 2021: (in thousands) Finance Leases Operating Leases Remaining six months of 2021 $ 48 $ 5,807 2022 — 10,019 2023 — 7,640 2024 — 5,917 2025 — 5,364 Thereafter — 18,004 Total lease payments 48 52,751 Less: Present value discount — (8,887) Total lease liabilities $ 48 $ 43,864 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Schedule of performance of reportable segments | The following tables illustrate certain measurements used by management to assess the performance of its reportable segments as of or for the following periods: Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2021 2020 2021 2020 Net Sales North America $ 350,557 $ 286,807 $ 651,120 $ 535,857 Europe 56,438 37,379 100,734 70,111 Asia/Pacific 3,286 1,890 6,068 3,776 Total $ 410,281 $ 326,076 $ 757,922 $ 609,744 Sales to Other Segments* North America $ 221 $ 671 $ 917 $ 1,311 Europe 1,551 1,308 3,160 2,562 Asia/Pacific 5,465 5,664 13,993 10,477 Total $ 7,237 $ 7,643 $ 18,070 $ 14,350 Income (Loss) from Operations North America $ 95,123 $ 72,196 $ 164,533 $ 125,757 Europe 5,873 2,696 8,164 1,026 Asia/Pacific 203 (75) 628 (679) Administrative and all other 529 (2,605) (3,213) (4,542) Total $ 101,728 $ 72,212 $ 170,112 $ 121,562 * Sales to other segments are eliminated in consolidation. At At June 30, December 31, (in thousands) 2021 2020 2020 Total Assets North America $ 1,189,835 $ 1,382,051 $ 1,059,967 Europe 205,065 169,757 198,647 Asia/Pacific 31,774 27,957 32,754 Administrative and all other (52,700) (295,262) (58,799) Total $ 1,373,974 $ 1,284,503 $ 1,232,569 |
Schedule of net sales distributed by product group | While the Company manages its business by geographic segment, the following table illustrates the distribution of the Company’s net sales by product group as additional information for the following periods: Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2021 2020 2021 2020 Wood construction products $ 355,787 $ 280,724 $ 657,365 $ 523,244 Concrete construction products 54,305 45,304 99,828 86,316 Other 189 48 729 184 Total $ 410,281 $ 326,076 $ 757,922 $ 609,744 |
Basis of Presentation - Account
Basis of Presentation - Accounting for Stock-based Compensation (Details) | 6 Months Ended |
Jun. 30, 2021 | |
Maximum | |
Stock-Based Compensation | |
Vesting period | 3 years |
Basis of Presentation - Dividen
Basis of Presentation - Dividend Declaration (Details) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Dividend Declaration [Abstract] | ||||
Cash dividends declared per common share | $ 0.25 | $ 0.23 | $ 0.48 | $ 0.46 |
Basis of Presentation - Accou_2
Basis of Presentation - Accounts Receivable, Allowance for Credit Loss (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accounts Receivable, Allowance for Credit Loss | $ 1,446 | $ 2,110 |
Accounts Receivable, Allowance for Credit Loss, Period Increase (Decrease) | (377) | |
Accounts Receivable, Allowance for Credit Loss, Writeoff | $ 287 |
Basis of Presentation - Recentl
Basis of Presentation - Recently Adopted Accounting Standards (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Operating lease right-of-use assets | $ 43,374 | $ 45,792 | $ 36,930 |
Total operating lease liabilities | $ 43,864 | $ 46,342 | $ 36,992 |
Revenue from Contract with Cu_2
Revenue from Contract with Customer (Details) - ASC 606 | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | |
Wood construction products | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of net sales | 87.00% | 86.00% | |
Concrete construction products | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of net sales | 13.00% | 14.00% | |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of net sales | 1.00% |
Net income Per Share - Reconcil
Net income Per Share - Reconciliation of EPS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Reconciliation of basic earnings per share ("EPS") to diluted EPS | ||||
Net income available to common stockholders | $ 72,483 | $ 53,479 | $ 122,872 | $ 90,305 |
Basic weighted-average shares outstanding | 43,434 | 43,471 | 43,406 | 43,787 |
Dilutive effect of potential common stock equivalents — restricted stock units | 207 | 192 | 214 | 193 |
Diluted weighted-average shares outstanding | 43,641 | 43,663 | 43,620 | 43,980 |
Net income per common share: | ||||
Basic | $ 1.67 | $ 1.23 | $ 2.83 | $ 2.06 |
Diluted | $ 1.66 | $ 1.22 | $ 2.82 | $ 2.05 |
Stockholders' Equity - Shares R
Stockholders' Equity - Shares Repurchases (Details) | Jun. 30, 2021shares |
Equity [Abstract] | |
Treasury stock (in shares) | 150,974 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Stock-Based Compensation | ||||
Weighted average granted date fair value (in dollars per share) | $ 114.60 | |||
Allocated share based compensation expense | $ 690 | |||
Equity instruments granted (in shares) | 6,601 | |||
Compensation expense | $ 756 | |||
Unrecognized compensation costs related to unvested share-based compensation arrangements | $ 21,300 | $ 21,300 | ||
Weighted-average period for recognition of unrecognized stock-based compensation expense | 2 years 6 months | |||
Restricted Stock Units | ||||
Stock-Based Compensation | ||||
Awarded (in shares) | 133,717 | |||
Weighted average granted date fair value (in dollars per share) | $ 100.93 | |||
Vesting period | 3 years | |||
Employees | ||||
Stock-Based Compensation | ||||
Stock-based compensation expense | $ 3,300 | $ 5,200 | $ 9,800 | $ 5,400 |
Employees | Restricted Stock Units | ||||
Stock-Based Compensation | ||||
Vesting period | 4 years |
Trade Accounts Receivable, Ne_2
Trade Accounts Receivable, Net (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 |
Receivables [Abstract] | |||
Trade accounts receivable | $ 255,077 | $ 170,001 | $ 239,220 |
Allowance for doubtful accounts | (1,446) | (2,110) | (2,007) |
Allowance for sales discounts and returns | (3,700) | (2,763) | (3,346) |
Trade accounts receivable, net | $ 249,931 | $ 165,128 | $ 233,867 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 |
Inventory Disclosure [Abstract] | |||
Raw materials | $ 101,163 | $ 95,777 | $ 110,883 |
In-process products | 24,117 | 21,803 | 18,661 |
Finished products | 184,974 | 166,162 | 135,821 |
Total inventories | $ 310,254 | $ 283,742 | $ 265,365 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 |
Property, Plant and Equipment | |||
Property, plant and equipment, gross | $ 629,767 | $ 611,988 | $ 594,087 |
Less accumulated depreciation and amortization | (393,653) | (377,460) | (360,719) |
Property, plant and equipment excluding capital projects in progress, net | 236,114 | 234,528 | 233,368 |
Capital projects in progress | 19,239 | 20,656 | 13,751 |
Property, plant and equipment, net | 255,353 | 255,184 | 247,119 |
Land | |||
Property, Plant and Equipment | |||
Property, plant and equipment, gross | 28,373 | 28,553 | 28,068 |
Buildings and site improvements | |||
Property, Plant and Equipment | |||
Property, plant and equipment, gross | 202,573 | 203,421 | 200,205 |
Leasehold improvements | |||
Property, Plant and Equipment | |||
Property, plant and equipment, gross | 5,961 | 7,091 | 5,817 |
Machinery, equipment, and software | |||
Property, Plant and Equipment | |||
Property, plant and equipment, gross | $ 392,860 | $ 372,923 | $ 359,997 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets, Net, Goodwill (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 |
Carrying amount of goodwill by reportable segment | |||
Goodwill | $ 134,121 | $ 135,844 | $ 132,335 |
North America | |||
Carrying amount of goodwill by reportable segment | |||
Goodwill | 96,393 | 96,311 | 96,099 |
Europe | |||
Carrying amount of goodwill by reportable segment | |||
Goodwill | 36,296 | 38,059 | 34,929 |
Asia/Pacific | |||
Carrying amount of goodwill by reportable segment | |||
Goodwill | $ 1,432 | $ 1,474 | $ 1,307 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets, Net, Intangible Assets, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Amortization of Intangible Assets | $ 1,700 | $ 1,600 | $ 3,426 | $ 3,000 | |
Acquired finite-lived intangible assets, weighted average useful life | 6 years 4 months 24 days | ||||
Changes in gross carrying amount of finite-lived intangible assets | |||||
Gross carrying amount | 67,502 | 59,337 | $ 67,502 | 59,337 | $ 67,127 |
Accumulated amortization | (43,753) | (37,198) | (43,753) | (37,198) | (40,327) |
Net carrying amount | 23,749 | 22,139 | 23,749 | 22,139 | 26,800 |
North America | |||||
Changes in gross carrying amount of finite-lived intangible assets | |||||
Gross carrying amount | 41,003 | 33,755 | 41,003 | 33,755 | 40,786 |
Accumulated amortization | (24,715) | (20,898) | (24,715) | (20,898) | (22,697) |
Net carrying amount | 16,288 | 12,857 | 16,288 | 12,857 | 18,089 |
Europe | |||||
Changes in gross carrying amount of finite-lived intangible assets | |||||
Gross carrying amount | 26,499 | 25,582 | 26,499 | 25,582 | 26,341 |
Accumulated amortization | (19,038) | (16,300) | (19,038) | (16,300) | (17,630) |
Net carrying amount | $ 7,461 | $ 9,282 | $ 7,461 | $ 9,282 | $ 8,711 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets, Net, Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Indefinite-lived Intangible Assets [Line Items] | ||||
Amortization of intangibles | $ 1,700 | $ 1,600 | $ 3,426 | $ 3,000 |
Trade Names | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Indefinite-lived intangible assets | $ 600 | $ 600 |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets, Net, Estimated Future Amortization (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Remaining six months of 2021 | $ 3,157 |
2022 | 4,339 |
2023 | 3,514 |
2024 | 2,462 |
2025 | 2,233 |
2026 | 1,492 |
Thereafter | 5,936 |
Total | $ 23,133 |
Acquired finite-lived intangible assets, weighted average useful life | 6 years 4 months 24 days |
Goodwill and Intangible Asset_7
Goodwill and Intangible Assets, Net, Carrying Amount of Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Goodwill | ||||
Balance at the beginning of the period | $ 135,844 | |||
Acquisitions | 218 | |||
Reclassifications | (106) | |||
Foreign exchange | (1,617) | |||
Balance at the end of the period | $ 134,121 | $ 132,335 | 134,121 | $ 132,335 |
Intangible Assets | ||||
Balance at the beginning of the period | 26,800 | |||
Reclassifications | 348 | |||
Amortization | (1,700) | (1,600) | (3,426) | (3,000) |
Foreign exchange | (191) | |||
Balance at the end of the period | $ 23,749 | $ 22,139 | $ 23,749 | $ 22,139 |
Leases - Narrative (Details)
Leases - Narrative (Details) | Jun. 30, 2021 |
Leases [Abstract] | |
Option to extend term | 5 years |
Leases - Balance Sheet Informat
Leases - Balance Sheet Information (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 |
Leases [Abstract] | |||
Operating lease right-of-use assets | $ 43,374 | $ 45,792 | $ 36,930 |
Operating - current | 9,777 | 9,143 | 8,099 |
Operating - noncurrent | 34,087 | 37,199 | 28,893 |
Total operating lease liabilities | 43,864 | 46,342 | 36,992 |
Property and equipment, gross | 3,569 | 3,569 | 3,569 |
Accumulated amortization | (3,264) | (3,112) | (2,953) |
Property and equipment, net | 305 | 457 | 616 |
Other current liabilities | 48 | 384 | 998 |
Total finance lease liabilities | $ 48 | $ 384 | $ 998 |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Leases [Abstract] | ||||
Operating lease cost | $ 3,055 | $ 2,625 | $ 6,017 | $ 5,051 |
Amortization of right-of-use assets | 107 | 218 | 214 | 436 |
Interest on lease liabilities | 1 | 9 | 2 | 21 |
Total finance lease | $ 108 | $ 227 | $ 216 | $ 457 |
Leases - Cash Flow Information
Leases - Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Lease, Cost [Abstract] | ||||
Operating cash flows for operating leases | $ 2,994 | $ 2,506 | $ 5,905 | $ 4,857 |
Finance cash flows for finance leases | 146 | 290 | 292 | 580 |
Operating right-of-use assets obtained in exchange for lease obligations during the current period | $ 3,307 | $ 4,510 | $ 4,093 | $ 7,112 |
Leases - Maturity (Details)
Leases - Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |||
Remaining six months of 2021 | $ 48 | ||
2022 | 0 | ||
2023 | 0 | ||
2024 | 0 | ||
2025 | 0 | ||
Thereafter | 0 | ||
Finance Lease, Liability, Payment, Due | 48 | ||
Finance Lease, Liability, Undiscounted Excess Amount | 0 | ||
Total finance lease liabilities | 48 | $ 384 | $ 998 |
Operating Leases | |||
Remaining six months of 2021 | 5,807 | ||
2022 | 10,019 | ||
2020 | 7,640 | ||
2021 | 5,917 | ||
2025 | 5,364 | ||
Thereafter | 18,004 | ||
Total lease payments | 52,751 | ||
Less: Present value discount | (8,887) | ||
Total operating lease liabilities | $ 43,864 | $ 46,342 | $ 36,992 |
Leases - Lease Terms and Discou
Leases - Lease Terms and Discount Rates (Details) | Jun. 30, 2021 | Jun. 30, 2020 |
Leases [Abstract] | ||
Operating Lease, Weighted Average Remaining Lease Term | 6 years 10 months 28 days | 6 years 7 months 2 days |
Finance Lease, Weighted Average Remaining Lease Term | 0 months | 11 months 12 days |
Operating Lease, Weighted Average Discount Rate, Percent | 5.28% | 5.36% |
Finance Lease, Weighted Average Discount Rate, Percent | 3.50% | 3.25% |
Debt (Details)
Debt (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Debt | ||
Remaining borrowing capacity | $ 300 | |
Long-term Line of Credit | 0 | $ 0 |
Line of Credit | ||
Debt | ||
Credit facility, total available credit | $ 304 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Nov. 20, 2017USD ($) |
Nishimura v. Gentry Homes, Ltd | |
Loss Contingencies [Line Items] | |
Settlement amount | $ 90 |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)segment | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($) | |
Segment Information | |||||
Number of reportable segments | segment | 3 | ||||
Net sales | $ 410,281 | $ 326,076 | $ 757,922 | $ 609,744 | |
Income (Loss) from Operations | 101,728 | 72,212 | 170,112 | 121,562 | |
Total Assets | 1,373,974 | 1,284,503 | 1,373,974 | 1,284,503 | $ 1,232,569 |
Cash and cash equivalent | 305,796 | 315,448 | 305,796 | 315,448 | 274,639 |
Intersegment elimination | |||||
Segment Information | |||||
Net sales | 7,237 | 7,643 | 18,070 | 14,350 | |
Administrative and all other | |||||
Segment Information | |||||
Income (Loss) from Operations | 529 | (2,605) | (3,213) | (4,542) | |
Total Assets | (52,700) | (295,262) | (52,700) | (295,262) | (58,799) |
Cash and cash equivalent | 238,300 | 261,800 | 238,300 | 261,800 | 199,800 |
North America | |||||
Segment Information | |||||
Net sales | 350,557 | 286,807 | 651,120 | 535,857 | |
Income (Loss) from Operations | 95,123 | 72,196 | 164,533 | 125,757 | |
Total Assets | 1,189,835 | 1,382,051 | 1,189,835 | 1,382,051 | 1,059,967 |
North America | Intersegment elimination | |||||
Segment Information | |||||
Net sales | 221 | 671 | 917 | 1,311 | |
Europe | |||||
Segment Information | |||||
Net sales | 56,438 | 37,379 | 100,734 | 70,111 | |
Income (Loss) from Operations | 5,873 | 2,696 | 8,164 | 1,026 | |
Total Assets | 205,065 | 169,757 | 205,065 | 169,757 | 198,647 |
Europe | Intersegment elimination | |||||
Segment Information | |||||
Net sales | 1,551 | 1,308 | 3,160 | 2,562 | |
Asia/Pacific | |||||
Segment Information | |||||
Net sales | 3,286 | 1,890 | 6,068 | 3,776 | |
Income (Loss) from Operations | 203 | (75) | 628 | (679) | |
Total Assets | 31,774 | 27,957 | 31,774 | 27,957 | $ 32,754 |
Asia/Pacific | Intersegment elimination | |||||
Segment Information | |||||
Net sales | $ 5,465 | $ 5,664 | $ 13,993 | $ 10,477 |
Segment Information (Details 2)
Segment Information (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Net sales and long-lived assets by geographical area | ||||
Net sales | $ 410,281 | $ 326,076 | $ 757,922 | $ 609,744 |
Wood construction products | ||||
Net sales and long-lived assets by geographical area | ||||
Net sales | 355,787 | 280,724 | 657,365 | 523,244 |
Concrete construction products | ||||
Net sales and long-lived assets by geographical area | ||||
Net sales | 54,305 | 45,304 | 99,828 | 86,316 |
Other | ||||
Net sales and long-lived assets by geographical area | ||||
Net sales | 189 | 48 | 729 | 184 |
North America | ||||
Net sales and long-lived assets by geographical area | ||||
Net sales | $ 350,557 | $ 286,807 | $ 651,120 | $ 535,857 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 |
Concentration Risk [Line Items] | |||
Cash and cash equivalents | $ 305,796 | $ 274,639 | $ 315,448 |
Administrative and all other | |||
Concentration Risk [Line Items] | |||
Cash and cash equivalents | $ 238,300 | $ 199,800 | $ 261,800 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions | Jul. 14, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 |
Subsequent Event [Line Items] | |||||
Cash dividends declared per common share | $ 0.25 | $ 0.23 | $ 0.48 | $ 0.46 | |
Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Cash dividends declared per common share | $ 0.25 | ||||
Dividends | $ 10.8 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Details) - 3 months ended Jun. 30, 2021 ¥ in Millions, $ in Millions | USD ($) | CNY (¥) | USD ($) |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative, notional amount | ¥ | ¥ 36.9 | ||
Proceeds from Sale of Derivative Instruments | $ 5.4 | ||
Other Current Assets | Foreign Exchange Contract | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative, Fair Value, Net | $ 0.2 |