Delaware
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93-1273278
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(State or other jurisdiction of
incorporation or organization)
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(I.R.S. Employer
Identification No.)
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Title of each class
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Trading Symbol(s)
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Name of each exchange on which registered
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Common Stock (par value $0.01 per share)
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JELD
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New York Stock Exchange
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Large accelerated filer
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x
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Accelerated filer
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☐
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Non-accelerated filer
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☐
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Smaller reporting company
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☐
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Emerging growth company
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☐
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A&L
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A&L Windows Pty. Ltd.
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ABL Facility
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Our $400 million asset-based loan revolving credit facility, dated as of October 15, 2014 and as amended from time to time, with JWI (as hereinafter defined) and JELD-WEN of Canada, Ltd., as borrowers, the guarantors party thereto, a syndicate of lenders, and Wells Fargo Bank, N.A., as administrative agent
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ABS
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American Building Supply, Inc.
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Adjusted EBITDA
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A supplemental non-GAAP financial measure of operating performance not based on any standardized methodology prescribed by GAAP that we define as net income (loss), adjusted for the following items: loss from discontinued operations, net of tax; equity earnings of non-consolidated entities; income tax (benefit) expense; depreciation and amortization; interest expense, net; impairment and restructuring charges; gain on previously held shares of equity investment; (gain) loss on sale of property and equipment; share-based compensation expense; non-cash foreign exchange transaction/translation (income) loss; other non-cash items; other items; and costs related to debt restructuring and debt refinancing
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ASC
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Accounting Standards Codification
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ASU
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Accounting Standards Update
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AUD
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Australian Dollar
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Australia Senior Secured Credit Facility
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Our senior secured credit facility, dated as of October 6, 2015 and as amended from time to time, with certain of our Australian subsidiaries, as borrowers, and Australia and New Zealand Banking Group Limited, as lender
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BBSY
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Bank Bill Swap Bid Rate
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Bylaws
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Amended and Restated Bylaws of JELD-WEN Holding, Inc.
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CAP
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Cleanup Action Plan
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Charter
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Restated Certificate of Incorporation of JELD-WEN Holding, Inc.
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Class B-1 Common Stock
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Shares of our Class B-1 common stock, par value $0.01 per share, all of which were converted into shares of our Common Stock on February 1, 2017
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CMI
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CraftMaster Manufacturing, Inc.
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COA
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Consent Order and Agreement
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CODM
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Chief Operating Decision Maker
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Common Stock
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The 900,000,000 shares of common stock, par value $0.01 per share, authorized under our Charter
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Corporate Credit Facilities
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Collectively, our ABL Facility and our Term Loan Facility
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Credit Facilities
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Collectively, our Corporate Credit Facilities and our Australia Senior Secured Credit Facility as well as other acquired term loans and revolving credit facilities
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D&K
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D&K Home Security Pty. Ltd.
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DKK
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Danish Krone
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Domoferm
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The Domoferm Group of companies
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Dooria
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Dooria AS
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EPA
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The U.S. Environmental Protection Agency
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ERP
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Enterprise Resource Planning
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ESOP
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JELD-WEN, Inc. Employee Stock Ownership and Retirement Plan
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E.U.
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European Union
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Euro Revolving Facility
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Our €39 million revolving credit facility, dated as of January 30, 2015 and as amended from time to time, with JELD-WEN ApS, as borrower, Danske Bank A/S and Nordea Bank Danmark A/S as lenders, which expired in February 2019
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Exchange Act
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Securities Exchange Act of 1934, as amended
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FASB
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Financial Accounting Standards Board
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10-K
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Annual Report on Form 10-K for the fiscal year ended December 31, 2019
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GAAP
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Generally Accepted Accounting Principles in the United States
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GHGs
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Greenhouse Gases
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GILTI
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Global Intangible Low-Taxed Income
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IPO
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The initial public offering of shares of our common stock, as further described in this report on Form 10-K
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JELD-WEN
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JELD-WEN Holding, Inc., together with its consolidated subsidiaries where the context requires
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JEM
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JELD-WEN Excellence Model
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JWA
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JELD-WEN of Australia Pty. Ltd.
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JWH
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JELD-WEN Holding, Inc., a Delaware corporation
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JWI
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JELD-WEN, Inc., a Delaware corporation
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Karona
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Karona, Inc.
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Kolder
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Kolder Group
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LIBOR
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London Interbank Offered Rate
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M&A
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Mergers and acquisitions
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MD&A
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Management’s Discussion and Analysis of Financial Condition and Results of Operations
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NYSE
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New York Stock Exchange
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Onex
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Onex Partners III LP and certain affiliates
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PaDEP
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Pennsylvania Department of Environmental Protection
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Preferred Stock
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90,000,000 shares of Preferred Stock, par value $0.01 per share, authorized under our Charter
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PSU
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Performance stock unit
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R&R
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Repair and remodel
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RSU
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Restricted stock unit
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Sarbanes-Oxley
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Sarbanes-Oxley Act of 2002, as amended
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SEC
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Securities and Exchange Commission
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Securities Act
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Securities Act of 1933, as amended
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Senior Notes
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$800.0 million of unsecured notes issued in December 2017 in a private placement in two tranches: $400.0 million bearing interest at 4.625% and maturing in December 2025 and $400.0 million bearing interest at 4.875% and maturing in December 2027
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Series A Convertible Preferred Stock
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Our Series A-1 Convertible Preferred Stock, par value $0.01 per share, Series A-2 Convertible Preferred Stock, par value $0.01 per share, Series A-3 Convertible Preferred Stock, par value $0.01 per share, and Series A-4 Convertible Preferred Stock, par value $0.01 per share, all of which were converted into shares of our common stock on February 1, 2017
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SG&A
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Selling, general, and administrative expenses
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Tax Act
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Tax Cuts and Jobs Act
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Term Loan Facility
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Our term loan facility, dated as of October 15, 2014, and as amended from time to time with JWI, as borrower, the guarantors party thereto, a syndicate of lenders, and Bank of America, N.A., as administrative agent
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Trend
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Trend Windows & Doors Pty. Ltd.
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U.K.
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United Kingdom
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U.S.
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United States of America
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VPI
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VPI Quality Windows, Inc.
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WADOE
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Washington State Department of Ecology
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•
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negative trends in overall business, financial market and economic conditions, and/or activity levels in our end markets;
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•
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increases in interest rates and reduced availability of financing for the purchase of new homes and home construction and improvements;
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•
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changes in building codes that could increase the cost of our products or lower the demand for our windows and doors;
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•
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lack of transparency, threat of fraud, public sector corruption, and other forms of criminal activity involving government officials;
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2019 Net Revenues $4,290 million
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Distribution Channel
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Geography
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Construction Application(1)
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(1)
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Percentage of net revenues by construction application is management’s estimate based on the end markets into which our customers sell.
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•
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initiatives to drive profitable organic revenue growth, including new product development, investments in our brands and marketing, channel management, and pricing optimization;
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•
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operational excellence programs to improve our profit margins and free cash flow, including deployment of our business operating system, the JELD-WEN Excellence Model, or JEM, and our facility rationalization and modernization initiative; and
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•
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disciplined and balanced capital allocation with a focus on maximizing returns.
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•
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New Product Development: Our management team has renewed our focus on innovation and new product development. We believe that leading the market in innovation will enhance demand for our products, increase the rate at which our products are specified into home and non-residential designs, and allow us to sell a higher margin product mix. Our new product innovations include material substitution opportunities (Auraline composite windows), solutions to meet changing building codes (Alumiere thermally broken windows), and the use of new technologies (fiberglass door systems and Finishield for vinyl windows).
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•
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Brand and Marketing Investment: We continue to make meaningful investments in new marketing initiatives designed to enhance the positioning of the JELD-WEN family of brands. Our new initiatives include marketing campaigns focused on the distributor, builder, architect, and consumer communities.
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•
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Channel Management: We are implementing initiatives and investing in tools and technology to enhance our relationships with key customers, make it easier for them to source from JELD-WEN, and support their ability to sell our products in the marketplace. These incentives help our customers grow their businesses in a profitable manner while also improving our sales volumes and the margin of our product mix.
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•
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Pricing Optimization: We are focused on profitable growth and will continue to employ a strategic approach to pricing our products. Pricing discipline is an important element of our effort to improve our profit margins and earn an appropriate return on our invested capital.
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•
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reducing labor costs, overtime, and waste by optimizing planning and manufacturing processes;
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•
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reducing or minimizing increases in material costs through strategic global sourcing and value-added re-engineering of components, in part by leveraging our significant spend and the global nature of our purchases;
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•
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reducing warranty costs by improving quality; and
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•
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a JEM-enabled facility rationalization and modernization initiative that will reduce overhead costs and complexity, while increasing our overall capacity and improving our service levels.
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•
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Expansion in Existing Markets: The competitive landscape in several of our key markets remains highly fragmented, which creates an opportunity for us to acquire businesses that will enhance our market-leading positions and realize synergies through the elimination of duplicate costs. Our acquisitions of Mattiovi (Finland), Dooria (Norway), Kolder (Australia), Trend (Australia), and A&L (Australia) are examples of this strategy.
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•
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Enhancing Our Portfolio of Products and Service Offerings: We strive to provide the broadest range of doors and windows to our customers so that we can enhance our share of their overall spend. Along with our organic new product development pipeline, we seek to expand our door and window product and service portfolio by acquiring companies that have developed unique products, technologies, or value-added services. Our acquisitions of Karona (stile and rail doors), LaCantina (folding and sliding wall systems), Aneeta (sashless windows), Breezway (louver windows), MMI Door (value-added supplier of customized door systems), Domoferm (steel frames and doors), ABS (value-added supplier of millwork to both residential and commercial channels), and VPI (vinyl windows for mid-rise multi-family, institutional, hospitality, and commercial properties) are examples of this strategy.
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•
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Product Adjacencies and New Geographies: Opportunities also exist to expand our company through the acquisition of complementary door and window manufacturers in new geographies as well as providers of product adjacencies. While this has not been a major focus in recent years, we expect it to be a key element in our long-term growth.
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•
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the strength of the economy;
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•
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employment rates and consumer confidence and spending rates;
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•
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the availability and cost of credit;
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•
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the amount and type of residential and non-residential construction;
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•
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housing sales and home values;
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•
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the age of existing home stock, home vacancy rates, and foreclosures;
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•
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interest rate fluctuations for our customers and consumers;
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•
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volatility in both debt and equity capital markets;
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•
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increases in the cost of raw materials or any shortage in supplies or labor, including as a result of tariffs or other trade restrictions;
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•
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the effects of governmental regulation and initiatives to manage economic conditions;
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•
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geographical shifts in population and other changes in demographics; and
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•
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changes in weather patterns.
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•
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the nature of the acquired company’s business;
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•
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any acquired business not performing as well as anticipated;
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•
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the potential loss of key employees of the acquired company;
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•
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any damage to our reputation as a result of performance or customer satisfaction problems relating to an acquired business;
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•
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the failure of our due diligence procedures to detect material issues related to the acquired business, including exposure to legal claims for activities of the acquired business prior to the acquisition;
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•
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unexpected liabilities resulting from the acquisition for which we may not be adequately indemnified;
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•
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our inability to enforce indemnification and non-compete agreements;
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•
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the integration of the personnel, operations, technologies, and products of the acquired business, and establishment of internal controls, including the implementation of our enterprise resource planning system, into the acquired company’s operations;
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•
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our failure to achieve projected synergies or cost savings;
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•
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our inability to establish uniform standards, controls, procedures, and policies;
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•
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any requirement that we make divestitures of operations or properties in order to comply with applicable antitrust laws in connection with future acquisitions;
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•
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the diversion of management attention and financial resources; and
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•
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any unforeseen management and operational difficulties, particularly if we acquire assets or businesses in new foreign jurisdictions where we have little or no operational experience.
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•
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the difficulty of enforcing agreements and collecting receivables through foreign legal systems;
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•
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trade protection measures and import or export licensing requirements;
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•
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the imposition of, or increases in, tariffs or other trade restrictions;
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•
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required compliance with a variety of foreign laws and regulations, including the application of foreign labor regulations;
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•
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tax rates in foreign countries and the imposition of withholding requirements on foreign earnings;
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•
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difficulty in staffing and managing widespread operations;
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•
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the imposition of, or increases in, currency exchange controls;
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•
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potential inflation in applicable non-U.S. economies; and
|
•
|
changes in general economic and political conditions in countries where we operate, including as a result of the impact of the withdrawal of the U.K. from the E.U.
|
•
|
limiting our ability to obtain financing in the future for working capital, capital expenditures, acquisitions, debt service, or other general corporate purposes;
|
•
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requiring us to use a substantial portion of our available cash flow to service our debt, which will reduce the amount of cash flow available for working capital, capital expenditures, acquisitions, and other general corporate purposes;
|
•
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increasing our vulnerability to general economic downturns and adverse industry conditions;
|
•
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limiting our flexibility in planning for, or reacting to, changes in our business and in our industry in general;
|
•
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limiting our ability to invest in and develop new products;
|
•
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placing us at a competitive disadvantage compared to our competitors that are not as highly leveraged, as we may be less capable of responding to adverse economic conditions, general economic downturns, and adverse industry conditions;
|
•
|
restricting the way we conduct our business because of financial and operating covenants in the agreements governing our existing and future indebtedness;
|
•
|
increasing the risk of our failing to satisfy our obligations with respect to borrowings outstanding under our Credit Facilities and Senior Notes and/or being able to comply with the financial and operating covenants contained in our debt instruments, which could result in an event of default under the credit agreements governing our Credit Facilities and the agreements governing our other debt, including the indenture governing the Senior Notes, that, if not cured or waived, could have a material adverse effect on our business, financial condition, and results of operations; and
|
•
|
increasing our cost of borrowing.
|
•
|
incur or guarantee additional indebtedness;
|
•
|
make certain loans, investments, or restricted payments, including dividends to our shareholders;
|
•
|
repurchase or redeem capital stock;
|
•
|
engage in certain transactions with affiliates;
|
•
|
sell certain assets (including stock of subsidiaries) or merge with or into other companies; and
|
•
|
create or incur liens.
|
•
|
negative trends in global economic conditions or activity levels in our end markets;
|
•
|
increases in interest rates used to finance home construction and improvements;
|
•
|
our ability to compete effectively against our competitors;
|
•
|
changes in consumer needs, expectations, or trends;
|
•
|
our ability to maintain our relationships with key customers;
|
•
|
our ability to implement our business strategy;
|
•
|
our ability to complete and integrate new acquisitions;
|
•
|
variations in the prices of raw materials used to manufacture our products;
|
•
|
adverse changes in building codes and standards or governmental regulations applicable to general business operations;
|
•
|
product liability claims or product recalls;
|
•
|
any legal actions in which we may become involved, including disputes relating to our intellectual property;
|
•
|
our ability to recruit and retain highly skilled staff;
|
•
|
actual or anticipated fluctuations in our quarterly or annual operating results;
|
•
|
trading volume of our Common Stock;
|
•
|
sales of our Common Stock by us, our executive officers and directors, or our shareholders (including certain affiliates of Onex) in the future; and
|
•
|
general economic and market conditions and overall fluctuations in the U.S. equity markets.
|
•
|
divide our board of directors into three classes with staggered three-year terms;
|
•
|
limit the ability of shareholders to remove directors only “for cause”;
|
•
|
provide that our board of directors is expressly authorized to adopt, alter, or repeal our bylaws;
|
•
|
authorize the issuance of blank check preferred stock that our board of directors could issue to increase the number of outstanding shares and to discourage a takeover attempt;
|
•
|
prohibit shareholder action by written consent, which requires all shareholder actions to be taken at a meeting of our shareholders;
|
•
|
prohibit our shareholders from calling a special meeting of shareholders;
|
•
|
establish advance notice requirements for nominations for election to our board of directors or for proposing matters that can be acted upon by shareholders at shareholder meetings; and
|
•
|
require the approval of holders of at least two-thirds of the outstanding shares of Common Stock to amend our bylaws and certain provisions of our certificate of incorporation.
|
|
Manufacturing
|
|
Distribution
|
North America
|
|
|
|
United States
|
45
|
|
9
|
Canada
|
4
|
|
2
|
St. Kitts
|
—
|
|
1
|
Chile
|
1
|
|
—
|
Mexico
|
1
|
|
—
|
|
51
|
|
12
|
Europe
|
|
|
|
United Kingdom
|
5
|
|
1
|
France
|
2
|
|
—
|
Austria
|
3
|
|
—
|
Czech Republic
|
1
|
|
|
Switzerland
|
1
|
|
—
|
Hungary
|
1
|
|
—
|
Germany
|
4
|
|
1
|
Sweden
|
3
|
|
—
|
Denmark
|
3
|
|
—
|
Latvia
|
3
|
|
—
|
Estonia
|
3
|
|
—
|
Finland
|
3
|
|
—
|
|
32
|
|
2
|
Australasia
|
|
|
|
Australia
|
37
|
|
4
|
Indonesia
|
2
|
|
—
|
Malaysia
|
2
|
|
—
|
|
41
|
|
4
|
Total JELD-WEN
|
124
|
|
18
|
|
1/27/2017
|
|
12/31/2017
|
|
12/31/2018
|
|
12/31/2019
|
JELD-WEN Holding, Inc.
|
$100.00
|
|
$150.73
|
|
$54.40
|
|
$89.62
|
S&P 500
|
$100.00
|
|
$121.83
|
|
$116.49
|
|
$153.17
|
S&P 1500 Building Products Index
|
$100.00
|
|
$110.00
|
|
$86.71
|
|
$123.14
|
|
|
Year Ended December 31,
|
||||||||||||||||||
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
|
|
(dollars in thousands, except per share data)
|
||||||||||||||||||
Net revenues
|
|
$
|
4,289,761
|
|
|
4,346,847
|
|
|
$
|
3,763,749
|
|
|
$
|
3,666,930
|
|
|
$
|
3,381,060
|
|
|
Income from continuing operations, net of tax
|
|
62,971
|
|
|
141,169
|
|
|
4,483
|
|
|
375,628
|
|
|
91,390
|
|
|||||
Income (loss) per common share from continuing operations:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
|
$
|
0.63
|
|
|
$
|
1.36
|
|
|
$
|
(0.02
|
)
|
|
$
|
(0.96
|
)
|
|
$
|
(15.72
|
)
|
Diluted
|
|
0.62
|
|
|
1.33
|
|
|
(0.02
|
)
|
|
$
|
(1.14
|
)
|
|
(15.72
|
)
|
||||
Cash dividends per common share
|
|
$
|
0.00
|
|
|
$
|
0.00
|
|
|
$
|
0.00
|
|
|
$
|
4.09
|
|
|
$
|
4.73
|
|
Other financial data:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Capital expenditures
|
|
$
|
136,192
|
|
|
$
|
118,700
|
|
|
$
|
63,049
|
|
|
$
|
79,497
|
|
|
$
|
77,687
|
|
Depreciation and amortization
|
|
133,969
|
|
|
125,100
|
|
|
111,273
|
|
|
107,995
|
|
|
95,196
|
|
|||||
Adjusted EBITDA(1)
|
|
415,038
|
|
|
459,218
|
|
|
435,162
|
|
|
392,227
|
|
|
310,986
|
|
|||||
Consolidated balance sheet data:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total assets (2)
|
|
$
|
3,381,332
|
|
|
$
|
3,047,525
|
|
|
$
|
2,860,077
|
|
|
$
|
2,535,117
|
|
|
$
|
2,182,373
|
|
Total debt
|
|
1,517,372
|
|
|
1,477,892
|
|
|
1,273,703
|
|
|
1,620,035
|
|
|
1,260,320
|
|
|||||
Redeemable convertible preferred stock
|
|
—
|
|
|
—
|
|
|
—
|
|
|
150,957
|
|
|
481,937
|
|
(1)
|
In addition to our consolidated financial statements presented in accordance with GAAP, we use Adjusted EBITDA to measure our financial performance. Adjusted EBITDA is a supplemental non-GAAP financial measure of operating performance and is not based on any standardized methodology prescribed by GAAP. Adjusted EBITDA should not be considered in isolation or as an alternative to net income (loss), cash flows from operating activities, or other measures determined in accordance with GAAP. Also, Adjusted EBITDA is not necessarily comparable to similarly titled measures presented by other companies. Adjusted EBITDA margin is defined as Adjusted EBITDA divided by net revenues.
|
(2)
|
In 2019, we adopted ASC 842 - Leases, resulting in an additional $202.1 million in total assets at December 31, 2019.
|
|
|
Year Ended December 31,
|
||||||||||||||||||
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
|
|
(dollars in thousands)
|
||||||||||||||||||
Net income
|
|
$
|
62,971
|
|
|
$
|
141,907
|
|
|
$
|
8,122
|
|
|
$
|
376,095
|
|
|
$
|
90,918
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loss from discontinued operations, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,324
|
|
|
2,856
|
|
|||||
Equity earnings of non-consolidated entities
|
|
—
|
|
|
(738
|
)
|
|
(3,639
|
)
|
|
(3,791
|
)
|
|
(2,384
|
)
|
|||||
Income tax expense (benefit)
|
|
57,074
|
|
|
(10,058
|
)
|
|
137,818
|
|
|
(246,763
|
)
|
|
(5,435
|
)
|
|||||
Depreciation and amortization
|
|
133,969
|
|
|
125,100
|
|
|
111,273
|
|
|
107,995
|
|
|
95,196
|
|
|||||
Interest expense, net(a)
|
|
71,778
|
|
|
70,818
|
|
|
79,034
|
|
|
77,590
|
|
|
60,632
|
|
|||||
Impairment and restructuring charges(b)
|
|
22,748
|
|
|
17,328
|
|
|
13,057
|
|
|
18,353
|
|
|
31,031
|
|
|||||
Gain on previously held shares of equity investment
|
|
—
|
|
|
(20,767
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Loss (gain) on sale of property and equipment
|
|
1,959
|
|
|
144
|
|
|
(299
|
)
|
|
(3,275
|
)
|
|
(416
|
)
|
|||||
Share-based compensation expense
|
|
13,315
|
|
|
15,052
|
|
|
19,785
|
|
|
22,464
|
|
|
15,620
|
|
|||||
Non-cash foreign exchange transaction/translation loss (income)
|
|
3,438
|
|
|
(1,267
|
)
|
|
(1,178
|
)
|
|
5,734
|
|
|
2,697
|
|
|||||
Other non-cash items(c)
|
|
304
|
|
|
3,859
|
|
|
526
|
|
|
2,843
|
|
|
1,141
|
|
|||||
Other items(d)
|
|
47,482
|
|
|
117,546
|
|
|
47,000
|
|
|
30,585
|
|
|
18,893
|
|
|||||
Costs relating to debt restructuring, debt refinancing, and the Onex investment(e)
|
|
—
|
|
|
294
|
|
|
23,663
|
|
|
1,073
|
|
|
237
|
|
|||||
Adjusted EBITDA
|
|
$
|
415,038
|
|
|
$
|
459,218
|
|
|
$
|
435,162
|
|
|
$
|
392,227
|
|
|
$
|
310,986
|
|
(a)
|
Interest expense for the year ended December 31, 2017 includes $6,097 related to the write-off of a portion of the unamortized debt issuance costs and original issue discount associated with the Term Loan Facility.
|
(b)
|
Impairment and restructuring charges consist of (i) impairment and restructuring charges that are included in our consolidated statements of operations plus (ii) additional charges of $1,197, $0, $1, $4,506, and $9,687, for the years ended December 31, 2019, 2018, 2017, 2016, and 2015, respectively. These additional charges are primarily comprised of non-cash changes in inventory valuation reserves, such as excess and obsolete reserves.
|
(c)
|
Other non-cash items include, among other things, charges of $235, $3,740, $439, $357, and $893, for the years ended December 31, 2019, 2018, 2017, 2016, and 2015, respectively, relating to (1) derivative losses of $235 in the year ended December 31, 2019; (2) the fair value adjustment for inventory acquired in the year ended December 31, 2018 and December 31, 2017 as part of the acquisitions referred to in “Management’s Discussion and Analysis of Financial Condition and Results of Operations-Acquisitions” and (3) charges of $2,153 for the out-of-period European warranty liability adjustment for the year ended December 31, 2016.
|
(d)
|
Other non-recurring items not core to ongoing business activity include: (i) in the year ended December 31, 2019 (1) $19,147 in facility closure and consolidation costs related to our facility footprint rationalization program, (2) $14,963 in acquisition and integration costs including $7,077 related to purchase price structured by the former owners as retention payments for key employees of a recent acquisition, (3) $12,860 in legal cost and professional fees relating primarily to litigation, (4) $(3,053) of realized gains on hedges of intercompany notes, (5) $1,998 in other miscellaneous costs, (6) $731 in equity compensation to employees in our Australasia region, and (7) $725 in costs related to the departure of former executives; (ii) in the year ended December 31, 2018, (1) $76,500 in litigation contingency accruals, (2) $26,529 in legal and professional fees relating primarily to litigation, (3) $10,324 in acquisition and integration costs, (4) $(5,396) of realized gains on hedges of intercompany notes, (4) $3,856 in costs related to the departure of former executives, (5) $2,901 in entity consolidation and reorganization costs, (6) $2,347 in miscellaneous costs (7) $485 in stock compensation payroll taxes (iii) in the year ended December 31, 2017, (1) $34,178 in legal costs, (2) $4,176 in realized loss on hedges relating to intercompany notes, (3) $3,484 in acquisition and integration costs, (4) $(2,247) gain on settlement of contract escrow (5) $2,202 in secondary offering costs, (6) $754 in tax consulting fee, (7) $678 in legal entity consolidation costs, (8) $649 in stock compensation payroll taxes, and (9) $578 in facility ramp down cost; (iv) in the year ended December 31, 2016, (1) $20,695 in payments to holders of vested options and restricted shares in connection with the November 2016 dividend, (2) $3,721 of professional fees related to the IPO of our common stock, (3) $1,626 of acquisition costs, (4) $584 in legal costs associated with disposition of non-core properties, (5) $507 of dividend-related costs, (6) $500 of costs related to the recruitment of executive management employees, (7) $450 in legal costs, and (8) $346 in Dooria plant closure costs; (v) in the year ended December 31, 2015, (1) $11,446 payment to holders of vested options and restricted shares in connection with the July 2015 dividend, (2) $5,510 related to a U.K. legal settlement, (3) $1,825 in acquisition costs, (4) $1,833 of recruitment costs related to the recruitment of executive management employees, (5) $1,082 of legal costs related to non-core property disposal, and partially offset by (6) ($5,678) of realized gain on foreign exchange hedges related to an intercompany loan.
|
(e)
|
Included in the year ended December 31, 2017 is a loss on debt extinguishment of $23,262 associated with the refinancing of our term loan.
|
•
|
Overview and Background. This section provides a general description of our Company and reportable segments, business and industry trends, our key business strategies and background information on other matters discussed in this MD&A.
|
•
|
Consolidated Results of Operations and Operating Results by Business Segment. This section provides our analysis and outlook for the significant line items on our consolidated statements of operations, as well as other information that we deem meaningful to an understanding of our results of operations on both a consolidated basis and a business segment basis.
|
•
|
Liquidity and Capital Resources. This section contains an overview of our financing arrangements and provides an analysis of trends and uncertainties affecting liquidity, cash requirements for our business and sources and uses of our cash.
|
•
|
Critical Accounting Policies and Estimates. This section discusses the accounting policies that we consider important to the evaluation and reporting of our financial condition and results of operations, and whose application requires significant judgments or a complex estimation process.
|
•
|
the strength of the economy;
|
•
|
employment rates and consumer confidence and spending rates;
|
•
|
the availability and cost of credit;
|
•
|
the amount and type of residential and non-residential construction;
|
•
|
housing sales and home values;
|
•
|
the age of existing home stock, home vacancy rates, and foreclosures;
|
•
|
interest rate fluctuations for our customers and consumers;
|
•
|
increases in the cost of raw materials or any shortage in supplies or labor;
|
•
|
the effects of governmental regulation and initiatives to manage economic conditions;
|
•
|
geographical shifts in population and other changes in demographics; and
|
•
|
changes in weather patterns.
|
•
|
innovating and developing new products and technologies;
|
•
|
investing in branding and marketing strategies, including marketing campaigns in both print and social media, as well as our investments in new training centers and mobile training facilities; and
|
•
|
implementing channel initiatives to enhance our relationships with key channel partners and customers, including the True BLU dealer management program in North America.
|
•
|
reducing labor, overtime, and waste costs by reducing facility count while optimizing manufacturing capacity and improving planning and manufacturing processes;
|
•
|
reducing or minimizing increases in material costs through strategic global sourcing and value-added re-engineering of components, in part by leveraging our significant spend and the global nature of our purchases;
|
•
|
reducing warranty costs by improving quality; and
|
•
|
a JEM-enabled facility rationalization and modernization initiative that will reduce overhead costs and complexity, while increasing our overall capacity and improving our service levels.
|
•
|
sales of a wide variety of interior and exterior doors, including patio doors, for use in residential and non-residential applications, with and without frames, to a broad group of wholesale and retail customers in all of our geographic markets;
|
•
|
sales of a wide variety of windows for both residential and certain non-residential uses, to a broad group of wholesale and retail customers primarily in North America, Australia, and the U.K.; and
|
•
|
other sales, including sales of moldings, trim board, cut-stock, glass, stairs, hardware and locks, door skins, shower enclosures, wardrobes, window screens, and miscellaneous installation and other services revenue.
|
•
|
Material Costs. The single largest component of cost of sales is material costs, which include raw materials, components and finished goods purchased for use in manufacturing our products or for resale. Our most significant material costs include glass, wood, wood components, doors, door facings, door parts, hardware, vinyl extrusions, steel, fiberglass, packaging materials, adhesives, resins and other chemicals, core material, and aluminum extrusions. The cost of each of these items is impacted by global supply and demand trends, both within and outside our industry, as well as commodity price fluctuations, conversion costs, energy costs, and transportation costs. The imposition of new tariffs on imports, new trade restrictions, or changes in tariff rates or trade restrictions may further impact material costs. See Item 7A- Quantitative and Qualitative Disclosures About Market Risk- Raw Materials Risk.
|
•
|
Direct Labor and Benefit Costs. Direct labor and benefit costs reflect a combination of production hours, average headcount, general wage levels, payroll taxes, and benefits provided to employees. Direct labor and benefit costs include wages, overtime, payroll taxes, and benefits paid to hourly employees at our facilities that are involved in the production and/or distribution of our products. These costs are generally managed by each facility and headcount is adjusted according to overall and seasonal production demand. We run multi-shift operations in many of our facilities to maximize return on assets and utilization. Direct labor and benefit costs fluctuate with headcount, but generally tend to increase with inflation due to increases in wages and health benefit costs.
|
•
|
Repair and Maintenance, Depreciation, Utility, Rent, and Warranty Expenses.
|
◦
|
Repairs and maintenance costs consist of equipment and facility maintenance expenses, purchases of maintenance supplies, and the labor costs involved in performing maintenance on our equipment and facilities.
|
◦
|
Depreciation includes depreciation expense associated with our production assets and plants.
|
◦
|
Rent is predominantly comprised of lease costs for facilities we do not own as well as vehicle fleet and equipment lease costs. Facility leases are typically multi-year and may include increases tied to certain measures of inflation.
|
◦
|
Warranty expenses represent all costs related to servicing warranty claims and product issues and are mostly related to our window and door products sold in the U.S. and Canada.
|
•
|
Outbound Freight. Outbound freight includes payments to third-party carriers for shipments of orders to our customers, as well as driver, vehicle, and fuel expenses when we deliver orders to customers. The majority of our products are shipped by third-party carriers.
|
•
|
Insurance and Benefits, Supervision, and Tax Expenses.
|
◦
|
Insurance and benefit costs are the expenses relating to our insurance programs, health benefits, retirement benefit programs (including the pension plan), and other benefits that are not included in direct labor and benefits costs.
|
◦
|
Supervision costs are the wages and bonus expenses related to plant managers. Both insurance and benefits and supervision expenses tend to be influenced by headcount and wage levels.
|
◦
|
Tax costs are mostly payroll taxes for employees not included in direct labor and benefit costs, and property taxes. Tax expenses are impacted by changes in tax rates, headcount and wage levels, and the number and value of properties owned.
|
|
Year Ended
|
||||||||||||
|
December 31, 2019
|
|
December 31, 2018
|
||||||||||
(amounts in thousands)
|
|
|
% of Net
Revenues
|
|
|
% of Net
Revenues
|
|||||||
Net revenues
|
$
|
4,289,761
|
|
|
100.0
|
%
|
|
$
|
4,346,847
|
|
|
100.0
|
%
|
Cost of sales
|
3,417,222
|
|
|
79.7
|
%
|
|
3,428,311
|
|
|
78.9
|
%
|
||
Gross margin
|
872,539
|
|
|
20.3
|
%
|
|
918,536
|
|
|
21.1
|
%
|
||
Selling, general and administrative
|
660,574
|
|
|
15.4
|
%
|
|
734,166
|
|
|
16.9
|
%
|
||
Impairment and restructuring charges
|
21,551
|
|
|
0.5
|
%
|
|
17,328
|
|
|
0.4
|
%
|
||
Operating income
|
190,414
|
|
|
4.4
|
%
|
|
167,042
|
|
|
3.8
|
%
|
||
Interest expense, net
|
71,778
|
|
|
1.7
|
%
|
|
70,818
|
|
|
1.6
|
%
|
||
Other income
|
(1,409
|
)
|
|
—
|
%
|
|
(34,887
|
)
|
|
(0.8
|
)%
|
||
Income before taxes and equity earnings
|
120,045
|
|
|
2.8
|
%
|
|
131,111
|
|
|
3.0
|
%
|
||
Income tax expense (benefit)
|
57,074
|
|
|
1.3
|
%
|
|
(10,058
|
)
|
|
(0.2
|
)%
|
||
Income from continuing operations, net of tax
|
62,971
|
|
|
1.5
|
%
|
|
141,169
|
|
|
3.2
|
%
|
||
Equity earnings of non-consolidated entities
|
—
|
|
|
—
|
%
|
|
738
|
|
|
—
|
%
|
||
Net income
|
$
|
62,971
|
|
|
1.5
|
%
|
|
$
|
141,907
|
|
|
3.3
|
%
|
|
December 31, 2018
|
|
December 31, 2017
|
||||||||||
(dollars in thousands)
|
|
% of Net
Revenues
|
|
% of Net
Revenues
|
|||||||||
Net revenues
|
$
|
4,346,847
|
|
|
100.0
|
%
|
|
$
|
3,763,749
|
|
|
100.0
|
%
|
Cost of sales
|
3,428,311
|
|
|
78.9
|
%
|
|
2,916,232
|
|
|
77.5
|
%
|
||
Gross margin
|
918,536
|
|
|
21.1
|
%
|
|
847,517
|
|
|
22.5
|
%
|
||
Selling, general and administrative
|
734,166
|
|
|
16.9
|
%
|
|
573,004
|
|
|
15.2
|
%
|
||
Impairment and restructuring charges
|
17,328
|
|
|
0.4
|
%
|
|
13,056
|
|
|
0.3
|
%
|
||
Operating income
|
167,042
|
|
|
3.8
|
%
|
|
261,457
|
|
|
6.9
|
%
|
||
Interest expense, net
|
70,818
|
|
|
1.6
|
%
|
|
79,034
|
|
|
2.1
|
%
|
||
Other (income) expense
|
(34,887
|
)
|
|
(0.8
|
)%
|
|
40,122
|
|
|
1.1
|
%
|
||
Income before taxes, equity earnings and discontinued operations
|
131,111
|
|
|
3.0
|
%
|
|
142,301
|
|
|
3.8
|
%
|
||
Income tax (benefit) expense
|
(10,058
|
)
|
|
(0.2
|
)%
|
|
137,818
|
|
|
3.7
|
%
|
||
Income from continuing operations, net of tax
|
141,169
|
|
|
3.2
|
%
|
|
4,483
|
|
|
0.1
|
%
|
||
Equity earnings of non-consolidated entities
|
738
|
|
|
—
|
%
|
|
3,639
|
|
|
0.1
|
%
|
||
Net income
|
$
|
141,907
|
|
|
3.3
|
%
|
|
$
|
8,122
|
|
|
0.2
|
%
|
|
|
Year Ended
|
|
|
|||||||
(amounts in thousands)
|
|
December 31, 2019
|
|
December 31, 2018
|
|
|
|||||
Net revenues from external customers
|
|
|
|
|
|
% Variance
|
|||||
North America
|
|
$
|
2,534,336
|
|
|
$
|
2,461,633
|
|
|
3.0
|
%
|
Europe
|
|
1,178,441
|
|
|
1,215,299
|
|
|
(3.0)
|
%
|
||
Australasia
|
|
576,984
|
|
|
669,915
|
|
|
(13.9)
|
%
|
||
Total Consolidated
|
|
$
|
4,289,761
|
|
|
$
|
4,346,847
|
|
|
(1.3)
|
%
|
Percentage of total consolidated net revenues
|
|
|
|
|
|
|
|||||
North America
|
|
59.1
|
%
|
|
56.6
|
%
|
|
|
|||
Europe
|
|
27.5
|
%
|
|
28.0
|
%
|
|
|
|||
Australasia
|
|
13.4
|
%
|
|
15.4
|
%
|
|
|
|||
Total Consolidated
|
|
100.0
|
%
|
|
100.0
|
%
|
|
|
|||
Adjusted EBITDA(1)
|
|
|
|
|
|
|
|||||
North America
|
|
$
|
267,335
|
|
|
$
|
279,526
|
|
|
(4.4)
|
%
|
Europe
|
|
116,193
|
|
|
122,810
|
|
|
(5.4)
|
%
|
||
Australasia
|
|
74,484
|
|
|
90,885
|
|
|
(18.0)
|
%
|
||
Corporate and unallocated costs
|
|
(42,974
|
)
|
|
(34,003
|
)
|
|
26.4
|
%
|
||
Total Consolidated
|
|
$
|
415,038
|
|
|
$
|
459,218
|
|
|
(9.6)
|
%
|
Adjusted EBITDA as a percentage of segment net revenues
|
|
|
|
|
|
|
|||||
North America
|
|
10.5
|
%
|
|
11.4
|
%
|
|
|
|||
Europe
|
|
9.9
|
%
|
|
10.1
|
%
|
|
|
|||
Australasia
|
|
12.9
|
%
|
|
13.6
|
%
|
|
|
|||
Total Consolidated
|
|
9.7
|
%
|
|
10.6
|
%
|
|
|
(1)
|
Adjusted EBITDA is a financial measure that is not calculated in accordance with GAAP. For a discussion of our presentation of Adjusted EBITDA, see Note 18 - Segment Information in our consolidated financial statements.
|
|
|
Year Ended
|
|
|
|||||||
(dollars in thousands)
|
|
December 31, 2018
|
|
December 31, 2017
|
|
|
|||||
Net revenues from external customers
|
|
|
|
|
|
% Variance
|
|||||
North America
|
|
$
|
2,461,633
|
|
|
$
|
2,157,898
|
|
|
14.1
|
%
|
Europe
|
|
1,215,299
|
|
|
1,042,767
|
|
|
16.5
|
%
|
||
Australasia
|
|
669,915
|
|
|
563,084
|
|
|
19.0
|
%
|
||
Total Consolidated
|
|
$
|
4,346,847
|
|
|
$
|
3,763,749
|
|
|
15.5
|
%
|
Percentage of total consolidated net revenues
|
|
|
|
|
|
|
|||||
North America
|
|
56.6
|
%
|
|
57.3
|
%
|
|
|
|||
Europe
|
|
28.0
|
%
|
|
27.7
|
%
|
|
|
|||
Australasia
|
|
15.4
|
%
|
|
15.0
|
%
|
|
|
|||
Total Consolidated
|
|
100.0
|
%
|
|
100.0
|
%
|
|
|
|||
Adjusted EBITDA(1)
|
|
|
|
|
|
|
|||||
North America
|
|
$
|
279,526
|
|
|
$
|
273,192
|
|
|
2.3
|
%
|
Europe
|
|
122,810
|
|
|
131,200
|
|
|
-6.4
|
%
|
||
Australasia
|
|
90,885
|
|
|
74,386
|
|
|
22.2
|
%
|
||
Corporate and Unallocated costs
|
|
(34,003
|
)
|
|
(43,616
|
)
|
|
-22.0
|
%
|
||
Total Consolidated
|
|
$
|
459,218
|
|
|
$
|
435,162
|
|
|
5.5
|
%
|
Adjusted EBITDA as a percentage of segment net revenues
|
|
|
|
|
|
|
|||||
North America
|
|
11.4
|
%
|
|
12.7
|
%
|
|
|
|||
Europe
|
|
10.1
|
%
|
|
12.6
|
%
|
|
|
|||
Australasia
|
|
13.6
|
%
|
|
13.2
|
%
|
|
|
|||
Total Consolidated
|
|
10.6
|
%
|
|
11.6
|
%
|
|
|
(1)
|
Adjusted EBITDA is a financial measure that is not calculated in accordance with GAAP. For a discussion of our presentation of Adjusted EBITDA, see Note 18 - Segment Information in our consolidated financial statements.
|
|
|
Year Ended
|
||||||||||
(amounts in thousands)
|
|
December 31,
2019 |
|
December 31,
2018 |
|
December 31,
2017 |
||||||
Cash provided by (used in):
|
|
|
|
|
|
|
||||||
Operating activities
|
|
$
|
302,709
|
|
|
$
|
219,653
|
|
|
$
|
265,793
|
|
Investing activities
|
|
(184,948
|
)
|
|
(284,141
|
)
|
|
(189,793
|
)
|
|||
Financing activities
|
|
(6,411
|
)
|
|
(67,475
|
)
|
|
64,090
|
|
|||
Effect of changes in exchange rates on cash and cash equivalents
|
|
903
|
|
|
(6,648
|
)
|
|
12,692
|
|
|||
Net change in cash and cash equivalents
|
|
$
|
112,253
|
|
|
$
|
(138,611
|
)
|
|
$
|
152,782
|
|
|
|
Payments Due By Period
|
||||||||||||||||||
|
|
Total
|
|
Less Than
1 Year
|
|
1-3 Years
|
|
3-5 Years
|
|
More Than
5 Years
|
||||||||||
|
|
(dollars in thousands)
|
||||||||||||||||||
Contractual Obligations(1)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Long-term debt obligations
|
|
$
|
1,513,272
|
|
|
$
|
64,562
|
|
|
$
|
42,864
|
|
|
$
|
587,754
|
|
|
$
|
818,092
|
|
Finance lease obligations
|
|
4,504
|
|
|
1,451
|
|
|
1,926
|
|
|
1,127
|
|
|
—
|
|
|||||
Operating lease obligations
|
|
246,581
|
|
|
53,894
|
|
|
79,799
|
|
|
53,644
|
|
|
59,244
|
|
|||||
Purchase obligations(2)
|
|
12,949
|
|
|
8,977
|
|
|
2,964
|
|
|
950
|
|
|
58
|
|
|||||
Interest on long-term debt obligations(3)
|
|
386,086
|
|
|
63,171
|
|
|
123,946
|
|
|
119,582
|
|
|
79,387
|
|
|||||
Totals:
|
|
$
|
2,163,392
|
|
|
$
|
192,055
|
|
|
$
|
251,499
|
|
|
$
|
763,057
|
|
|
$
|
956,781
|
|
(1)
|
Not included in the table above are our unfunded pension liabilities totaling $113.5 million and uncertain tax position liabilities of $20.2 million as of December 31, 2019, for which the timing of payment is unknown.
|
(2)
|
Purchase obligations are defined as purchase agreements that are enforceable and legally binding and that specify all significant terms, including quantity, price, and the approximate timing of the transaction. The obligations reflected in the table relates primarily to raw materials purchase agreements, costs associated with enterprise solutions implementations, sales and marketing, and software hosting services.
|
(3)
|
Interest on long-term debt obligations is calculated based on debt outstanding and interest rates in effect on December 31, 2019, taking into account scheduled maturities and amortization payments.
|
•
|
Enhance and supplement the finance team in Europe by increasing the number of roles, reassigning responsibilities, and adding additional resources with an appropriate level of knowledge and experience in internal control over financial reporting commensurate with the financial reporting complexities of the organization;
|
•
|
Enhance the tone, communication and overall awareness of the importance of internal control over financial reporting from executive management;
|
•
|
Evaluate corporate and segment monitoring controls to ensure they are designed and operating at the appropriate level of precision required to support risk mitigation;
|
•
|
Implement enhancements to the design of our customer pricing controls in Europe;
|
•
|
Implement enhancements to the design of our journal entry controls in Europe;
|
•
|
Implement enhancements to the design of our controls related to the reconciliation of subsidiary ledger financial information used in the consolidated financial statements;
|
•
|
Strengthen procedures and set guidelines for documentation of controls throughout our domestic and international locations for consistency of application;
|
•
|
Institute additional training programs that occur on a regular basis related to internal control over financial reporting for our world-wide finance and accounting personnel.
|
•
|
hiring additional personnel in Europe with knowledge and experience in internal control over financial reporting; however, due to contractual notice periods within Europe (typically three to six months), many of the individuals retained were not available until the fourth quarter of 2019;
|
•
|
conducted quarterly in-person training sessions on internal controls over financial reporting, monitoring controls, complex accounting topics, account reconciliations and journal entry controls in Europe;
|
•
|
implemented enhancements to closing processes that included the centralization of certain tasks, development of manuals and standardized templates to enhance the evidence supporting the local teams’ execution of internal control over financial reporting; and
|
•
|
developed a global accounting manual to provide guidance on critical accounting policies and procedural outlines for their implementation.
|
|
|
(a)
|
|
(b)
|
|
(c)
|
|
Plan Category
|
|
Number of Securities to be Issued Upon Exercise of Outstanding Options, Warrants, and Rights
|
|
Weighted Average Exercise Price of Outstanding Options, Warrants, and Rights(1)
|
|
Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans (Excluding Securities Reflected in Column (a))
|
|
Equity compensation plans approved by security holders
|
|
4,583,077(2)
|
|
$19.55
|
|
4,198,034(3)
|
|
Equity compensation plans not approved by security holders
|
|
—
|
|
—
|
|
|
—
|
Total
|
|
4,583,077
|
|
$19.55
|
|
4,198,034
|
(1)
|
Excludes RSUs and PSUs, which have no exercise price.
|
(2)
|
Consists of shares underlying 2,832,799 stock options, 1,239,505 RSUs, and 510,773 PSUs outstanding under the 2011 Stock Incentive Plan and 2017 Omnibus Equity Plan.
|
(3)
|
Number of securities remaining for future issuances includes only shares available under the 2017 Omnibus Equity Plan.
|
Exhibit No.
|
|
Exhibit Description
|
|
Form
|
|
File No.
|
|
Exhibit
|
|
Filing Date
|
3.1
|
|
|
8-K
|
|
001-38000
|
|
3.1
|
|
February 3, 2017
|
|
3.2
|
|
|
S-1/A
|
|
333-211761
|
|
3.4
|
|
January 5, 2017
|
|
4.1*
|
|
|
|
|
|
|
|
|
|
|
4.2
|
|
|
S-1/A
|
|
333-211761
|
|
4.1
|
|
January 5, 2017
|
|
4.3
|
|
|
10-K
|
|
001-38000
|
|
4.2
|
|
March 3, 2017
|
|
4.4
|
|
|
S-1
|
|
333-221538
|
|
4.3
|
|
May 15, 2017
|
|
4.5
|
|
|
S-1
|
|
333-221538
|
|
4.4
|
|
November 13, 2017
|
|
4.6
|
|
|
8-K
|
|
001-38000
|
|
4.1
|
|
December 14, 2017
|
|
4.7
|
|
|
8-K
|
|
001-38000
|
|
4.1
|
|
December 27, 2018
|
|
10.1
|
|
|
S-1
|
|
333-211761
|
|
10.1
|
|
June 1, 2016
|
|
10.2
|
|
|
S-1
|
|
333-211761
|
|
10.1.1
|
|
June 1, 2016
|
|
10.3
|
|
|
S-1/A
|
|
333-211761
|
|
10.1.2
|
|
November 17, 2016
|
Exhibit No.
|
|
Exhibit Description
|
|
Form
|
|
File No.
|
|
Exhibit
|
|
Filing Date
|
10.4
|
|
|
8-K
|
|
001-38000
|
|
10.1
|
|
December 15, 2017
|
|
10.5
|
|
|
8-K
|
|
001-38000
|
|
10.1
|
|
December 27, 2018
|
|
10.6
|
|
|
8-K
|
|
001-38000
|
|
10.1
|
|
January 6, 2020
|
|
10.7
|
|
|
S-1
|
|
333-211761
|
|
10.2
|
|
June 1, 2016
|
|
10.8
|
|
|
S-1
|
|
333-211761
|
|
10.2.1
|
|
June 1, 2016
|
|
10.9
|
|
|
S-1/A
|
|
333-211761
|
|
10.2.2
|
|
November 17, 2016
|
|
10.10
|
|
|
8-K
|
|
001-38000
|
|
10.1
|
|
March 8, 2017
|
|
10.11
|
|
|
8-K
|
|
001-38000
|
|
10.2
|
|
December 15, 2017
|
|
10.12
|
|
|
8-K
|
|
001-38000
|
|
10.1
|
|
September 20, 2019
|
|
10.13
|
|
|
S-1/A
|
|
333-211761
|
|
10.3
|
|
December 16, 2016
|
|
10.14
|
|
|
S-1/A
|
|
333-211761
|
|
10.3.1
|
|
December 16, 2016
|
|
10.15
|
|
|
S-1/A
|
|
333-211761
|
|
10.3.2
|
|
December 16, 2016
|
|
10.16
|
|
|
S-1/A
|
|
333-211761
|
|
10.3.3
|
|
December 16, 2016
|
|
10.17
|
|
|
S-1/A
|
|
333-211761
|
|
10.4
|
|
December 16, 2016
|
|
10.18
|
|
|
S-1/A
|
|
333-211761
|
|
10.4.1
|
|
December 16, 2016
|
|
10.19
|
|
|
S-1/A
|
|
333-211761
|
|
10.4.2
|
|
December 16, 2016
|
|
10.20+
|
|
|
10-Q
|
|
001-38000
|
|
10.14
|
|
May 12, 2017
|
|
10.21+
|
|
|
S-1/A
|
|
333-211761
|
|
10.7
|
|
December 16, 2016
|
JELD-WEN HOLDING, INC.
|
|
(Registrant)
|
|
|
|
By:
|
/s/ John Linker
|
|
John Linker
|
|
Chief Financial Officer
|
Signature
|
|
Title
|
|
Date
|
|
|
|
|
|
|
|
/s/ Gary S. Michel
|
|
President, Chief Executive Officer and Director (Principal Executive Officer)
|
|
February 24, 2020
|
|
Gary S. Michel
|
|
|
|
||
/s/ John Linker
|
|
Chief Financial Officer (Principal Financial Officer)
|
|
February 24, 2020
|
|
John Linker
|
|
|
|
||
/s/ Scott Vining
|
|
Chief Accounting Officer (Principal Accounting Officer)
|
|
February 24, 2020
|
|
Scott Vining
|
|
|
|
||
/s/ Matthew Ross
|
|
Chairman
|
|
February 24, 2020
|
|
Matthew Ross
|
|
|
|
|
|
/s/ Roderick C. Wendt
|
|
Vice Chairman
|
|
February 24, 2020
|
|
Roderick C. Wendt
|
|
|
|
|
|
/s/ William Banholzer
|
|
Director
|
|
February 24, 2020
|
|
William Banholzer
|
|
|
|
|
|
/s/ Martha Byorum
|
|
Director
|
|
February 24, 2020
|
|
Martha (Stormy) Byorum
|
|
|
|
|
|
/s/ Greg G. Maxwell
|
|
Director
|
|
February 24, 2020
|
|
Greg G. Maxwell
|
|
|
|
|
Signature
|
|
Title
|
|
Date
|
|
/s/ Anthony Munk
|
|
Director
|
|
February 24, 2020
|
|
Anthony Munk
|
|
|
|
|
|
/s/ Suzanne Stefany
|
|
Director
|
|
February 24, 2020
|
|
Suzanne Stefany
|
|
|
|
|
|
/s/ Bruce Taten
|
|
Director
|
|
February 24, 2020
|
|
Bruce Taten
|
|
|
|
|
|
/s/ Steven E. Wynne
|
|
Director
|
|
February 24, 2020
|
|
Steven E. Wynne
|
|
|
|
|
Report of Independent Registered Public Accounting Firm
|
|
|
Consolidated Statements of Operations for the Years Ended December 31, 2019, 2018 and 2017
|
|
|
Consolidated Statements of Comprehensive Income (Loss) for the Years Ended December 31, 2019, 2018 and 2017
|
|
|
Consolidated Balance Sheets as of December 31, 2019 and 2018
|
|
|
Consolidated Statements of Equity for the Years Ended December 31, 2019, 2018 and 2017
|
|
|
Consolidated Statements of Cash Flows for the Years Ended December 31, 2019, 2018 and 2017
|
|
|
Notes to Consolidated Financial Statements
|
|
Schedule I - Parent Company Information as of December 31, 2019 and 2018 and for the Years Ended December 31, 2019, 2018 and 2017
|
|
|
For the Years Ended December 31,
|
||||||||||
(amounts in thousands, except share and per share data)
|
2019
|
|
2018
|
|
2017
|
||||||
Net revenues
|
$
|
4,289,761
|
|
|
$
|
4,346,847
|
|
|
$
|
3,763,749
|
|
Cost of sales
|
3,417,222
|
|
|
3,428,311
|
|
|
2,916,232
|
|
|||
Gross margin
|
872,539
|
|
|
918,536
|
|
|
847,517
|
|
|||
Selling, general and administrative
|
660,574
|
|
|
734,166
|
|
|
573,004
|
|
|||
Impairment and restructuring charges
|
21,551
|
|
|
17,328
|
|
|
13,056
|
|
|||
Operating income
|
190,414
|
|
|
167,042
|
|
|
261,457
|
|
|||
Interest expense, net
|
71,778
|
|
|
70,818
|
|
|
79,034
|
|
|||
Other (income) expense
|
(1,409
|
)
|
|
(34,887
|
)
|
|
40,122
|
|
|||
Income before taxes and equity earnings
|
120,045
|
|
|
131,111
|
|
|
142,301
|
|
|||
Income tax expense (benefit)
|
57,074
|
|
|
(10,058
|
)
|
|
137,818
|
|
|||
Income from continuing operations, net of tax
|
62,971
|
|
|
141,169
|
|
|
4,483
|
|
|||
Equity earnings of non-consolidated entities
|
—
|
|
|
738
|
|
|
3,639
|
|
|||
Net income
|
$
|
62,971
|
|
|
$
|
141,907
|
|
|
$
|
8,122
|
|
Convertible preferred stock dividends
|
—
|
|
|
—
|
|
|
10,462
|
|
|||
Net income (loss) attributable to common shareholders
|
$
|
62,971
|
|
|
$
|
141,907
|
|
|
$
|
(2,340
|
)
|
|
|
|
|
|
|
||||||
Weighted average common shares outstanding:
|
|
|
|
|
|
||||||
Basic
|
100,618,105
|
|
|
104,530,572
|
|
|
97,460,676
|
|
|||
Diluted
|
101,464,325
|
|
|
106,360,657
|
|
|
97,460,676
|
|
|||
Net income per share
|
|
|
|
|
|
||||||
Basic
|
$
|
0.63
|
|
|
$
|
1.36
|
|
|
$
|
(0.02
|
)
|
Diluted
|
$
|
0.62
|
|
|
$
|
1.33
|
|
|
$
|
(0.02
|
)
|
|
For the Years Ended December 31,
|
||||||||||
(amounts in thousands)
|
2019
|
|
2018
|
|
2017
|
||||||
Net income
|
$
|
62,971
|
|
|
$
|
141,907
|
|
|
$
|
8,122
|
|
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
||||||
Foreign currency translation adjustments, net of tax benefit of $0, ($1,892), and $0, respectively
|
(15,335
|
)
|
|
(65,185
|
)
|
|
88,788
|
|
|||
Interest rate hedge adjustments, net of tax (benefit) expense of ($4,831), ($538), and $5,001, respectively
|
6,173
|
|
|
2,636
|
|
|
4,486
|
|
|||
Defined benefit pension plans, net of tax (benefit) expense of $1,152, $4,214, and $5,357, respectively
|
2,692
|
|
|
12,237
|
|
|
9,415
|
|
|||
|
(6,470
|
)
|
|
(50,312
|
)
|
|
102,689
|
|
|||
Comprehensive income
|
$
|
56,501
|
|
|
$
|
91,595
|
|
|
$
|
110,811
|
|
(amounts in thousands, except share and per share data)
|
December 31,
2019 |
|
December 31,
2018 |
||||
ASSETS
|
|
|
|
||||
Current assets
|
|
|
|
||||
Cash and cash equivalents
|
$
|
225,962
|
|
|
$
|
116,991
|
|
Restricted cash
|
3,914
|
|
|
632
|
|
||
Accounts receivable, net
|
469,762
|
|
|
471,843
|
|
||
Inventories
|
505,078
|
|
|
508,499
|
|
||
Other current assets
|
38,562
|
|
|
48,674
|
|
||
Total current assets
|
1,243,278
|
|
|
1,146,639
|
|
||
Property and equipment, net
|
864,375
|
|
|
843,403
|
|
||
Deferred tax assets
|
183,837
|
|
|
209,062
|
|
||
Goodwill
|
602,500
|
|
|
585,942
|
|
||
Intangible assets, net
|
250,327
|
|
|
225,553
|
|
||
Operating lease assets, net
|
202,053
|
|
|
—
|
|
||
Other assets
|
34,962
|
|
|
36,926
|
|
||
Total assets
|
$
|
3,381,332
|
|
|
$
|
3,047,525
|
|
LIABILITIES AND EQUITY
|
|
|
|
||||
Current liabilities
|
|
|
|
||||
Accounts payable
|
$
|
294,951
|
|
|
$
|
249,978
|
|
Accrued payroll and benefits
|
109,386
|
|
|
115,018
|
|
||
Accrued expenses and other current liabilities
|
298,603
|
|
|
252,310
|
|
||
Current maturities of long-term debt
|
65,846
|
|
|
54,930
|
|
||
Total current liabilities
|
768,786
|
|
|
672,236
|
|
||
Long-term debt
|
1,451,526
|
|
|
1,422,962
|
|
||
Unfunded pension liability
|
107,937
|
|
|
107,522
|
|
||
Operating lease liability
|
164,026
|
|
|
—
|
|
||
Deferred credits and other liabilities
|
67,682
|
|
|
72,693
|
|
||
Deferred tax liabilities
|
9,288
|
|
|
10,478
|
|
||
Total liabilities
|
2,569,245
|
|
|
2,285,891
|
|
||
Commitments and contingencies (Note 28)
|
|
|
|
||||
Shareholders’ equity
|
|
|
|
||||
Preferred Stock, par value $0.01 per share, 90,000,000 shares authorized; no shares issued and outstanding
|
—
|
|
|
—
|
|
||
Common Stock: 900,000,000 shares authorized, par value $0.01 per share, 100,668,003 shares outstanding as of December 31, 2019; 900,000,000 shares authorized, par value $0.01 per share, 101,310,862 shares outstanding as of December 31, 2018
|
1,007
|
|
|
1,013
|
|
||
Additional paid-in capital
|
671,772
|
|
|
658,593
|
|
||
Retained earnings
|
290,583
|
|
|
246,833
|
|
||
Accumulated other comprehensive loss
|
(151,275
|
)
|
|
(144,805
|
)
|
||
Total shareholders’ equity
|
812,087
|
|
|
761,634
|
|
||
Total liabilities and shareholders’ equity
|
$
|
3,381,332
|
|
|
$
|
3,047,525
|
|
|
December 31, 2019
|
|
December 31, 2018
|
|
December 31, 2017
|
|||||||||||||||
(amounts in thousands, except share and per share amounts)
|
Shares
|
|
Amount
|
|
Shares
|
|
Amount
|
|
Shares
|
|
Amount
|
|||||||||
Preferred stock, $0.01 par value per share
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
Common stock, $0.01 par value per share
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Balance at beginning of period
|
101,310,862
|
|
$
|
1,013
|
|
|
105,990,483
|
|
$
|
1,060
|
|
|
17,894,393
|
|
|
$
|
178
|
|
||
Shares issued for exercise/vesting of share-based compensation awards
|
645,957
|
|
7
|
|
|
907,068
|
|
9
|
|
|
2,047,668
|
|
|
21
|
|
|||||
Shares repurchased
|
(1,192,419)
|
|
(12
|
)
|
|
(5,287,964)
|
|
(53
|
)
|
|
(2,266
|
)
|
|
—
|
|
|||||
Shares issued upon conversion of Class B-1 Common Stock
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
309,404
|
|
|
3
|
|
|||||
Shares issued upon conversion of convertible preferred stock to Common Stock
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
64,211,172
|
|
|
642
|
|
|||||
Shares surrendered for tax obligations for employee share-based transactions
|
(96,397)
|
|
(1
|
)
|
|
(298,725)
|
|
(3
|
)
|
|
(742,615
|
)
|
|
(7
|
)
|
|||||
Shares issued in initial public offering
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
22,272,727
|
|
|
223
|
|
|||||
Balance at period end
|
100,668,003
|
|
$
|
1,007
|
|
|
101,310,862
|
|
$
|
1,013
|
|
|
105,990,483
|
|
$
|
1,060
|
|
|||
Class B-1 Common Stock
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Balance as of January 1
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
|
177,221
|
|
|
2
|
|
||||
Class B-1 Common Stock converted to common
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(177,221
|
)
|
|
(2
|
)
|
||||
Balance at period end
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Balance at period end
|
|
|
$
|
1,007
|
|
|
|
|
$
|
1,013
|
|
|
|
|
$
|
1,060
|
|
|||
Additional paid-in capital
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Balance at beginning of period
|
|
$
|
659,241
|
|
|
|
|
$
|
653,327
|
|
|
|
|
$
|
37,205
|
|
||||
Shares issued for exercise/vesting of share-based compensation awards
|
|
1,970
|
|
|
|
|
192
|
|
|
|
|
1,008
|
|
|||||||
Shares repurchased
|
|
—
|
|
|
|
|
—
|
|
|
|
|
(183
|
)
|
|||||||
Shares surrendered for tax obligations for employee share-based transactions
|
|
(1,956
|
)
|
|
|
|
(8,887
|
)
|
|
|
|
(25,897
|
)
|
|||||||
Conversion of convertible preferred stock
|
|
—
|
|
|
|
|
—
|
|
|
|
|
150,901
|
|
|||||||
Initial public offering proceeds, net of underwriting fees and commissions
|
|
—
|
|
|
|
|
—
|
|
|
|
|
480,306
|
|
|||||||
Costs associated with initial public offering
|
|
—
|
|
|
|
|
—
|
|
|
|
|
(7,923
|
)
|
|||||||
Amortization of share-based compensation
|
|
13,190
|
|
|
|
|
14,609
|
|
|
|
|
17,910
|
|
|||||||
Balance at period end
|
|
672,445
|
|
|
|
|
659,241
|
|
|
|
|
653,327
|
|
|||||||
Employee stock notes
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Balance at beginning of period
|
|
(648
|
)
|
|
|
|
(661
|
)
|
|
|
|
(843
|
)
|
|||||||
Net issuances, payments and accrued interest on notes
|
|
(25
|
)
|
|
|
|
13
|
|
|
|
|
182
|
|
|||||||
Balance at period end
|
|
(673
|
)
|
|
|
|
(648
|
)
|
|
|
|
(661
|
)
|
|||||||
Balance at period end
|
|
$
|
671,772
|
|
|
|
|
$
|
658,593
|
|
|
|
|
$
|
652,666
|
|
Retained earnings
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Balance at beginning of period
|
|
$
|
246,833
|
|
|
|
|
$
|
229,903
|
|
|
|
|
$
|
221,146
|
|
|
Share repurchased
|
|
(19,982
|
)
|
|
|
|
(124,977
|
)
|
|
|
|
—
|
|
||||
Adoption of new accounting standard ASU No. 2016-02
|
|
761
|
|
|
|
|
—
|
|
|
|
|
—
|
|
||||
Adoption of new accounting standard ASU 2016-09
|
|
—
|
|
|
|
|
—
|
|
|
|
|
635
|
|
||||
Net income
|
|
62,971
|
|
|
|
|
141,907
|
|
|
|
|
8,122
|
|
||||
Balance at period end
|
|
$
|
290,583
|
|
|
|
|
$
|
246,833
|
|
|
|
|
$
|
229,903
|
|
|
Accumulated other comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Balance at beginning of period
|
|
$
|
(144,805
|
)
|
|
|
|
$
|
(94,493
|
)
|
|
|
|
$
|
(197,182
|
)
|
|
Foreign currency adjustments
|
|
(15,335
|
)
|
|
|
|
(65,185
|
)
|
|
|
|
88,788
|
|
||||
Unrealized gain on interest rate hedges
|
|
6,173
|
|
|
|
|
2,636
|
|
|
|
|
4,486
|
|
||||
Net actuarial pension gain
|
|
2,692
|
|
|
|
|
12,237
|
|
|
|
|
9,415
|
|
||||
Balance at period end
|
|
$
|
(151,275
|
)
|
|
|
|
$
|
(144,805
|
)
|
|
|
|
$
|
(94,493
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total shareholders’ equity at period end
|
|
$
|
812,087
|
|
|
|
|
$
|
761,634
|
|
|
|
|
$
|
789,136
|
|
|
|
For the Years Ended December 31,
|
||||||||||
(amounts in thousands)
|
|
2019
|
|
2018
|
|
2017
|
||||||
OPERATING ACTIVITIES
|
|
|
|
|
|
|
||||||
Net income
|
|
$
|
62,971
|
|
|
$
|
141,907
|
|
|
$
|
8,122
|
|
Adjustments to reconcile net income to cash used in operating activities:
|
|
|
|
|
|
|
||||||
Depreciation and amortization
|
|
133,969
|
|
|
125,100
|
|
|
111,273
|
|
|||
Deferred income taxes
|
|
21,838
|
|
|
(35,804
|
)
|
|
96,224
|
|
|||
(Gain) loss on sale of business units, property and equipment
|
|
(1,377
|
)
|
|
845
|
|
|
206
|
|
|||
Adjustment to carrying value of assets
|
|
6,625
|
|
|
1,230
|
|
|
1,479
|
|
|||
Equity earnings in non-consolidated entities
|
|
—
|
|
|
(738
|
)
|
|
(3,639
|
)
|
|||
Amortization of deferred financing costs
|
|
1,971
|
|
|
2,107
|
|
|
9,422
|
|
|||
Loss on extinguishment of debt
|
|
—
|
|
|
—
|
|
|
23,262
|
|
|||
Non-cash gain on previously held shares of an equity investment
|
|
—
|
|
|
(20,767
|
)
|
|
—
|
|
|||
Stock-based compensation
|
|
13,315
|
|
|
15,052
|
|
|
19,785
|
|
|||
Contributions to U.S. pension plan
|
|
(7,760
|
)
|
|
(4,125
|
)
|
|
(10,000
|
)
|
|||
Amortization of U.S. pension expense
|
|
8,919
|
|
|
9,314
|
|
|
12,680
|
|
|||
Other items, net
|
|
(3,320
|
)
|
|
2,263
|
|
|
(6,873
|
)
|
|||
Net change in operating assets and liabilities, net of effect of acquisitions:
|
|
|
|
|
|
|
||||||
Accounts receivable
|
|
8,426
|
|
|
16,507
|
|
|
1,295
|
|
|||
Inventories
|
|
4,190
|
|
|
(33,092
|
)
|
|
(30,518
|
)
|
|||
Other assets
|
|
6,938
|
|
|
(18,966
|
)
|
|
(5,673
|
)
|
|||
Accounts payable and accrued expenses
|
|
37,611
|
|
|
39,540
|
|
|
26,740
|
|
|||
Change in short term and long-term tax liabilities
|
|
8,393
|
|
|
(20,720
|
)
|
|
12,008
|
|
|||
Net cash provided by operating activities
|
|
302,709
|
|
|
219,653
|
|
|
265,793
|
|
|||
INVESTING ACTIVITIES
|
|
|
|
|
|
|
||||||
Purchases of property and equipment
|
|
(101,506
|
)
|
|
(97,399
|
)
|
|
(59,599
|
)
|
|||
Proceeds from sale of business units, property and equipment
|
|
8,632
|
|
|
1,973
|
|
|
2,713
|
|
|||
Purchase of intangible assets
|
|
(34,686
|
)
|
|
(21,301
|
)
|
|
(3,450
|
)
|
|||
Purchases of businesses, net of cash acquired
|
|
(57,799
|
)
|
|
(167,688
|
)
|
|
(131,448
|
)
|
|||
Cash received for notes receivable
|
|
411
|
|
|
274
|
|
|
1,991
|
|
|||
Net cash used in investing activities
|
|
(184,948
|
)
|
|
(284,141
|
)
|
|
(189,793
|
)
|
|||
FINANCING ACTIVITIES
|
|
|
|
|
|
|
||||||
Change in long-term debt
|
|
13,101
|
|
|
70,468
|
|
|
(389,665
|
)
|
|||
Payments of notes payable
|
|
—
|
|
|
—
|
|
|
(205
|
)
|
|||
Employee note repayments
|
|
—
|
|
|
39
|
|
|
26
|
|
|||
Contingent consideration for acquisitions
|
|
—
|
|
|
(3,701
|
)
|
|
—
|
|
|||
Common stock issued for exercise of options
|
|
1,977
|
|
|
201
|
|
|
1,029
|
|
|||
Common stock repurchased
|
|
(19,994
|
)
|
|
(125,030
|
)
|
|
—
|
|
|||
Payments to tax authorities for employee share-based compensation
|
|
(1,495
|
)
|
|
(9,452
|
)
|
|
(25,335
|
)
|
|||
Proceeds from sale of common stock, net of underwriting fees and commissions
|
|
—
|
|
|
—
|
|
|
480,306
|
|
|||
Payments associated with initial public offering
|
|
—
|
|
|
—
|
|
|
(2,066
|
)
|
|||
Net cash (used in) provided by financing activities
|
|
(6,411
|
)
|
|
(67,475
|
)
|
|
64,090
|
|
|||
Effect of foreign currency exchange rates on cash
|
|
903
|
|
|
(6,648
|
)
|
|
12,692
|
|
|||
Net increase (decrease) in cash and cash equivalents
|
|
112,253
|
|
|
(138,611
|
)
|
|
152,782
|
|
|||
Cash, cash equivalents and restricted cash, beginning
|
|
117,623
|
|
|
256,234
|
|
|
103,452
|
|
|||
Cash, cash equivalents and restricted cash, ending
|
|
$
|
229,876
|
|
|
$
|
117,623
|
|
|
$
|
256,234
|
|
For further information see Note 30 - Supplemental Cash Flow.
|
|
|
|
|
|
|
Land improvements
|
10 - 20 years
|
Buildings
|
15 - 45 years
|
Machinery and equipment
|
3 - 20 years
|
Trademarks and trade names
|
3 - 40 years
|
Software
|
1 - 15 years
|
Licenses and rights
|
2 - 14 years
|
Customer relationships
|
1 - 16 years
|
Patents
|
3 - 25 years
|
(amounts in thousands)
|
Preliminary Allocation
|
|
Measurement Period Adjustment
|
|
Revised Preliminary Allocation
|
||||||
Fair value of identifiable assets and liabilities:
|
|
|
|
|
|
||||||
Accounts receivable
|
$
|
11,417
|
|
|
$
|
(420
|
)
|
|
$
|
10,997
|
|
Inventories
|
2,555
|
|
|
(141
|
)
|
|
2,414
|
|
|||
Other current assets
|
261
|
|
|
40
|
|
|
301
|
|
|||
Property and equipment
|
3,166
|
|
|
176
|
|
|
3,342
|
|
|||
Identifiable intangible assets
|
17,702
|
|
|
5,735
|
|
|
23,437
|
|
|||
Operating lease assets
|
3,739
|
|
|
—
|
|
|
3,739
|
|
|||
Goodwill
|
26,553
|
|
|
(3,053
|
)
|
|
23,500
|
|
|||
Other assets
|
10
|
|
|
—
|
|
|
10
|
|
|||
Total assets
|
$
|
65,403
|
|
|
$
|
2,337
|
|
|
$
|
67,740
|
|
Accounts payable
|
2,629
|
|
|
—
|
|
|
2,629
|
|
|||
Other current liabilities
|
1,875
|
|
|
522
|
|
|
2,397
|
|
|||
Operating lease liability
|
3,413
|
|
|
—
|
|
|
3,413
|
|
|||
Other liabilities
|
—
|
|
|
1,502
|
|
|
1,502
|
|
|||
Total liabilities
|
$
|
7,917
|
|
|
$
|
2,024
|
|
|
$
|
9,941
|
|
Purchase price:
|
|
|
|
|
|
||||||
Cash consideration, net of cash acquired
|
$
|
57,486
|
|
|
$
|
313
|
|
|
$
|
57,799
|
|
(amounts in thousands)
|
Preliminary Allocation
|
|
Measurement Period Adjustment
|
|
Final Allocation
|
||||||
Fair value of identifiable assets and liabilities:
|
|
|
|
|
|
||||||
Accounts receivable
|
$
|
58,714
|
|
|
$
|
(2,079
|
)
|
|
$
|
56,635
|
|
Inventories
|
97,305
|
|
|
(8,069
|
)
|
|
89,236
|
|
|||
Other current assets
|
14,910
|
|
|
(6,137
|
)
|
|
8,773
|
|
|||
Property and equipment
|
53,128
|
|
|
26,170
|
|
|
79,298
|
|
|||
Identifiable intangible assets
|
70,057
|
|
|
(1,363
|
)
|
|
68,694
|
|
|||
Goodwill
|
64,950
|
|
|
(4,330
|
)
|
|
60,620
|
|
|||
Other assets
|
7,283
|
|
|
(3,528
|
)
|
|
3,755
|
|
|||
Total assets
|
$
|
366,347
|
|
|
$
|
664
|
|
|
$
|
367,011
|
|
Accounts payable
|
29,512
|
|
|
(6,097
|
)
|
|
23,415
|
|
|||
Current maturities of long-term debt
|
17,278
|
|
|
803
|
|
|
18,081
|
|
|||
Other current liabilities
|
27,595
|
|
|
4,496
|
|
|
32,091
|
|
|||
Long-term debt
|
47,369
|
|
|
5,129
|
|
|
52,498
|
|
|||
Other liabilities
|
17,551
|
|
|
(2,353
|
)
|
|
15,198
|
|
|||
Total liabilities
|
$
|
139,305
|
|
|
$
|
1,978
|
|
|
$
|
141,283
|
|
Purchase price:
|
|
|
|
|
|
||||||
Cash consideration, net of cash acquired
|
$
|
169,002
|
|
|
$
|
(1,314
|
)
|
|
$
|
167,688
|
|
Contingent consideration
|
3,898
|
|
|
—
|
|
|
3,898
|
|
|||
Gain on previously held shares
|
20,767
|
|
|
—
|
|
|
20,767
|
|
|||
Existing investment in acquired entity
|
33,483
|
|
|
—
|
|
|
33,483
|
|
|||
Non-cash consideration related to acquired intercompany balances
|
(108
|
)
|
|
—
|
|
|
(108
|
)
|
|||
Total consideration, net of cash acquired
|
$
|
227,042
|
|
|
$
|
(1,314
|
)
|
|
$
|
225,728
|
|
(amounts in thousands)
|
2019
|
|
2018
|
|
2017
|
||||||
Balance as of January 1,
|
$
|
(6,227
|
)
|
|
$
|
(4,468
|
)
|
|
$
|
(3,763
|
)
|
Acquisitions (Note 2)
|
(235
|
)
|
|
(1,668
|
)
|
|
(268
|
)
|
|||
Additions charged to expense
|
(961
|
)
|
|
(2,769
|
)
|
|
(1,731
|
)
|
|||
Deductions
|
1,407
|
|
|
2,301
|
|
|
1,662
|
|
|||
Currency translation
|
49
|
|
|
377
|
|
|
(368
|
)
|
|||
Balance at period end
|
$
|
(5,967
|
)
|
|
$
|
(6,227
|
)
|
|
$
|
(4,468
|
)
|
(amounts in thousands)
|
December 31,
2019 |
|
December 31,
2018 |
||||
Raw materials
|
$
|
372,289
|
|
|
$
|
370,124
|
|
Work in process
|
38,432
|
|
|
39,127
|
|
||
Finished goods
|
94,357
|
|
|
99,248
|
|
||
Total inventories
|
$
|
505,078
|
|
|
$
|
508,499
|
|
(amounts in thousands)
|
December 31, 2019
|
|
December 31, 2018
|
||||
Prepaid assets
|
$
|
27,992
|
|
|
$
|
29,840
|
|
Refundable income taxes
|
9,034
|
|
|
10,524
|
|
||
Fair value of derivative instruments (Note 26)
|
1,372
|
|
|
8,234
|
|
||
Other
|
164
|
|
|
76
|
|
||
Total other current assets
|
$
|
38,562
|
|
|
$
|
48,674
|
|
(amounts in thousands)
|
2019
|
|
2018
|
||||
Land improvements
|
$
|
34,211
|
|
|
$
|
34,060
|
|
Buildings
|
502,315
|
|
|
501,659
|
|
||
Machinery and equipment
|
1,369,174
|
|
|
1,306,555
|
|
||
Total depreciable assets
|
1,905,700
|
|
|
1,842,274
|
|
||
Accumulated depreciation
|
(1,188,209
|
)
|
|
(1,138,898
|
)
|
||
|
717,491
|
|
|
703,376
|
|
||
Land
|
69,262
|
|
|
69,188
|
|
||
Construction in progress
|
77,622
|
|
|
70,839
|
|
||
Total property and equipment, net
|
$
|
864,375
|
|
|
$
|
843,403
|
|
(amounts in thousands)
|
2019
|
|
2018
|
|
2017
|
||||||
Cost of sales
|
$
|
84,449
|
|
|
$
|
85,357
|
|
|
$
|
78,975
|
|
Selling, general and administrative
|
9,882
|
|
|
8,699
|
|
|
7,835
|
|
|||
Total depreciation expense
|
$
|
94,331
|
|
|
$
|
94,056
|
|
|
$
|
86,810
|
|
(amounts in thousands)
|
North
America
|
|
Europe
|
|
Australasia
|
|
Total
Reportable
Segments
|
||||||||
Balance as of December 31, 2017
|
$
|
201,560
|
|
|
$
|
268,162
|
|
|
$
|
79,341
|
|
|
$
|
549,063
|
|
Acquisitions
|
17,645
|
|
|
30,167
|
|
|
17,138
|
|
|
64,950
|
|
||||
Acquisition remeasurements
|
4,881
|
|
|
(3,317
|
)
|
|
(5,227
|
)
|
|
(3,663
|
)
|
||||
Currency translation
|
(524
|
)
|
|
(15,324
|
)
|
|
(8,560
|
)
|
|
(24,408
|
)
|
||||
Balance as of December 31, 2018
|
$
|
223,562
|
|
|
$
|
279,688
|
|
|
$
|
82,692
|
|
|
$
|
585,942
|
|
Acquisitions - preliminary allocation
|
26,553
|
|
|
—
|
|
|
—
|
|
|
26,553
|
|
||||
Acquisition remeasurements
|
(1,535
|
)
|
|
—
|
|
|
(1,248
|
)
|
|
(2,783
|
)
|
||||
Sale of business unit
|
(1,343
|
)
|
|
—
|
|
|
—
|
|
|
(1,343
|
)
|
||||
Currency translation
|
265
|
|
|
(5,776
|
)
|
|
(358
|
)
|
|
(5,869
|
)
|
||||
Balance as of December 31, 2019
|
$
|
247,502
|
|
|
$
|
273,912
|
|
|
$
|
81,086
|
|
|
$
|
602,500
|
|
|
2019
|
||||||||||
(amounts in thousands)
|
Cost
|
|
Accumulated
Amortization
|
|
Net
Book Value
|
||||||
Customer relationships and agreements
|
$
|
151,540
|
|
|
$
|
(57,326
|
)
|
|
$
|
94,214
|
|
Software
|
92,821
|
|
|
(18,222
|
)
|
|
74,599
|
|
|||
Trademarks and trade names
|
58,088
|
|
|
(7,512
|
)
|
|
50,576
|
|
|||
Patents, licenses and rights
|
45,392
|
|
|
(14,454
|
)
|
|
30,938
|
|
|||
Total amortizable intangibles
|
$
|
347,841
|
|
|
$
|
(97,514
|
)
|
|
$
|
250,327
|
|
|
2018
|
||||||||||
(amounts in thousands)
|
Cost
|
|
Accumulated
Amortization
|
|
Net
Book Value
|
||||||
Customer relationships and agreements
|
$
|
134,999
|
|
|
$
|
(45,418
|
)
|
|
$
|
89,581
|
|
Software
|
62,147
|
|
|
(14,053
|
)
|
|
48,094
|
|
|||
Trademarks and trade names
|
57,513
|
|
|
(5,050
|
)
|
|
52,463
|
|
|||
Patents, licenses and rights
|
47,804
|
|
|
(12,389
|
)
|
|
35,415
|
|
|||
Total amortizable intangibles
|
$
|
302,463
|
|
|
$
|
(76,910
|
)
|
|
$
|
225,553
|
|
(amounts in thousands)
|
2019
|
|
2018
|
|
2017
|
||||||
Amortization expense
|
$
|
30,956
|
|
|
$
|
22,208
|
|
|
$
|
15,896
|
|
(amounts in thousands)
|
|
||
2020
|
$
|
28,054
|
|
2021
|
27,406
|
|
|
2022
|
26,393
|
|
|
2023
|
23,246
|
|
|
2024
|
22,220
|
|
|
Thereafter
|
123,008
|
|
|
|
$
|
250,327
|
|
(amounts in thousands)
|
Balance Sheet Location
|
|
December 31,
2019 |
||
Assets:
|
|
|
|
||
Operating
|
Operating lease assets, net
|
|
$
|
202,053
|
|
Finance
|
Property and equipment, net (1)
|
|
4,045
|
|
|
Total lease assets
|
|
$
|
206,098
|
|
|
Liabilities:
|
|
|
|
||
Current:
|
|
|
|
||
Operating
|
Accrued expense and other current liabilities
|
|
$
|
45,254
|
|
Finance
|
Current maturities of long-term debt
|
|
1,280
|
|
|
Noncurrent:
|
|
|
|
||
Operating
|
Operating lease liability
|
|
164,026
|
|
|
Finance
|
Long-term debt
|
|
2,820
|
|
|
Total lease liability
|
|
$
|
213,380
|
|
(1)
|
Finance lease assets are recorded net of accumulated depreciation of $1.5 million as of December 31, 2019.
|
(amounts in thousands)
|
|
||
Operating
|
$
|
54,535
|
|
Short term
|
11,543
|
|
|
Variable
|
3,806
|
|
|
Low value
|
1,738
|
|
|
Finance
|
90
|
|
|
Total lease costs
|
$
|
71,712
|
|
|
December 31,
2019 |
Weighted average remaining lease terms (years):
|
|
Operating
|
6.7
|
Finance
|
3.7
|
Weighted average discount rate:
|
|
Operating
|
4.7%
|
Finance
|
4.4%
|
|
December 31, 2019
|
||||||||||
(amounts in thousands)
|
Operating Leases (1)
|
|
Finance Leases
|
|
Total
|
||||||
2020
|
$
|
53,894
|
|
|
$
|
1,451
|
|
|
$
|
55,345
|
|
2021
|
43,854
|
|
|
1,143
|
|
|
44,997
|
|
|||
2022
|
35,945
|
|
|
783
|
|
|
36,728
|
|
|||
2023
|
30,014
|
|
|
699
|
|
|
30,713
|
|
|||
2024
|
23,630
|
|
|
428
|
|
|
24,058
|
|
|||
Thereafter
|
59,244
|
|
|
—
|
|
|
59,244
|
|
|||
Total lease payments
|
246,581
|
|
|
4,504
|
|
|
251,085
|
|
|||
Less: Interest
|
37,301
|
|
|
404
|
|
|
37,705
|
|
|||
Present value of lease liability
|
$
|
209,280
|
|
|
$
|
4,100
|
|
|
$
|
213,380
|
|
(1)
|
Operating lease payments include $15.4 million related to options to extend lease terms that are reasonably certain of being exercised.
|
|
December 31, 2018
|
||||||||||
(amounts in thousands)
|
Operating Leases
|
|
Capital Leases (1)
|
|
Total
|
||||||
2019
|
$
|
49,128
|
|
|
$
|
862
|
|
|
$
|
49,990
|
|
2020
|
43,794
|
|
|
826
|
|
|
44,620
|
|
|||
2021
|
30,885
|
|
|
561
|
|
|
31,446
|
|
|||
2022
|
24,020
|
|
|
237
|
|
|
24,257
|
|
|||
2023
|
19,352
|
|
|
225
|
|
|
19,577
|
|
|||
Thereafter
|
33,943
|
|
|
23,968
|
|
|
57,911
|
|
|||
Total future minimum lease payment obligations
|
$
|
201,122
|
|
|
$
|
26,679
|
|
|
$
|
227,801
|
|
(amounts in thousands)
|
2019
|
|
2018
|
||||
Customer displays
|
$
|
11,213
|
|
|
$
|
15,069
|
|
Deposits
|
6,440
|
|
|
6,627
|
|
||
Cloud computing arrangements
|
6,374
|
|
|
—
|
|
||
Long-term notes receivable
|
4,614
|
|
|
4,902
|
|
||
Overfunded pension benefit obligation
|
2,015
|
|
|
1,517
|
|
||
Other prepaid expenses
|
1,896
|
|
|
5,331
|
|
||
Debt issuance costs on unused portion of revolver facility
|
1,472
|
|
|
1,552
|
|
||
Other long-term accounts receivable
|
563
|
|
|
762
|
|
||
Other long-term assets
|
375
|
|
|
366
|
|
||
Long-term taxes receivable
|
—
|
|
|
800
|
|
||
Total other assets
|
$
|
34,962
|
|
|
$
|
36,926
|
|
(amounts in thousands)
|
Equity
|
|
Cost
|
|
Total
|
||||||
Ending balance, December 31, 2017
|
$
|
32,745
|
|
|
$
|
442
|
|
|
$
|
33,187
|
|
Equity earnings
|
738
|
|
|
—
|
|
|
738
|
|
|||
Acquired equity method investment
|
(33,483
|
)
|
|
—
|
|
|
(33,483
|
)
|
|||
Other
|
—
|
|
|
(76
|
)
|
|
(76
|
)
|
|||
Ending balance, December 31, 2018
|
$
|
—
|
|
|
$
|
366
|
|
|
$
|
366
|
|
Additions
|
—
|
|
|
16
|
|
|
16
|
|
|||
Other
|
—
|
|
|
(13
|
)
|
|
(13
|
)
|
|||
Ending balance, December 31, 2019
|
$
|
—
|
|
|
$
|
369
|
|
|
$
|
369
|
|
(amounts in thousands)
|
2019
|
|
2018
|
|
2017
|
||||||
Net sales
|
$
|
—
|
|
|
$
|
91,234
|
|
|
$
|
354,964
|
|
Gross profit
|
—
|
|
|
18,261
|
|
|
74,399
|
|
|||
Net income
|
—
|
|
|
1,752
|
|
|
6,870
|
|
|||
Adjustment for profit (loss) in inventory
|
—
|
|
|
(138
|
)
|
|
204
|
|
|||
Net income attributable to Company
|
—
|
|
|
738
|
|
|
3,639
|
|
(amounts in thousands)
|
2019
|
|
2018
|
||||
Accrued vacation
|
$
|
46,746
|
|
|
$
|
48,976
|
|
Accrued payroll and commissions
|
23,854
|
|
|
23,746
|
|
||
Accrued bonuses
|
11,101
|
|
|
11,035
|
|
||
Accrued payroll taxes
|
11,372
|
|
|
11,214
|
|
||
Other accrued benefits
|
8,633
|
|
|
10,325
|
|
||
Non-U.S. defined contributions and other accrued benefits
|
7,680
|
|
|
9,722
|
|
||
Total accrued payroll and benefits
|
$
|
109,386
|
|
|
$
|
115,018
|
|
(amounts in thousands)
|
2019
|
|
2018
|
||||
Current portion of legal claims provision
|
$
|
79,332
|
|
|
$
|
79,356
|
|
Accrued sales and advertising rebates
|
67,250
|
|
|
68,755
|
|
||
Current portion of operating lease liability (Note 9)
|
45,254
|
|
|
—
|
|
||
Accrued expenses
|
27,993
|
|
|
28,261
|
|
||
Non-income related taxes
|
23,178
|
|
|
21,643
|
|
||
Current portion of warranty liability (Note 14)
|
21,054
|
|
|
20,529
|
|
||
Current portion of accrued claim costs relating to self-insurance programs
|
12,312
|
|
|
12,319
|
|
||
Current portion of deferred revenue
|
7,986
|
|
|
9,896
|
|
||
Current portion of restructuring accrual (Note 23)
|
6,051
|
|
|
6,635
|
|
||
Current portion of derivative liability (Note 26)
|
4,068
|
|
|
1,161
|
|
||
Accrued interest payable
|
2,126
|
|
|
2,016
|
|
||
Current portion of accrued income taxes payable
|
1,999
|
|
|
1,739
|
|
||
Total accrued expenses and other current liabilities
|
$
|
298,603
|
|
|
$
|
252,310
|
|
(amounts in thousands)
|
2019
|
|
2018
|
|
2017
|
||||||
Balance as of January 1
|
$
|
46,468
|
|
|
$
|
46,256
|
|
|
$
|
45,398
|
|
Current period expense
|
20,853
|
|
|
21,822
|
|
|
17,674
|
|
|||
Liabilities assumed due to acquisition
|
2,104
|
|
|
1,550
|
|
|
95
|
|
|||
Experience adjustments
|
1,890
|
|
|
1,227
|
|
|
(614
|
)
|
|||
Payments
|
(21,818
|
)
|
|
(23,410
|
)
|
|
(17,255
|
)
|
|||
Currency translation
|
219
|
|
|
(977
|
)
|
|
958
|
|
|||
Balance at period end
|
49,716
|
|
|
46,468
|
|
|
46,256
|
|
|||
Current portion
|
(21,054
|
)
|
|
(20,529
|
)
|
|
(19,547
|
)
|
|||
Long-term portion
|
$
|
28,662
|
|
|
$
|
25,939
|
|
|
$
|
26,709
|
|
|
December 31, 2019
|
|
December 31,
2019 |
|
December 31,
2018 |
||||
(amounts in thousands)
|
Interest Rate
|
|
|
||||||
Senior notes
|
4.63% - 4.88%
|
|
$
|
800,000
|
|
|
$
|
800,000
|
|
Term loans
|
1.30% - 3.94%
|
|
591,153
|
|
|
474,058
|
|
||
Finance leases and other financing arrangements
|
1.90% - 6.00%
|
|
108,613
|
|
|
98,914
|
|
||
Mortgage notes
|
1.65%
|
|
28,175
|
|
|
30,375
|
|
||
Revolving credit facilities
|
—%
|
|
—
|
|
|
85,000
|
|
||
Installment notes for stock
|
4.75%
|
|
205
|
|
|
962
|
|
||
Unamortized debt issuance costs and original issue discount
|
|
(10,774
|
)
|
|
(11,417
|
)
|
|||
|
|
|
1,517,372
|
|
|
1,477,892
|
|
||
Current maturities of long-term debt
|
|
(65,846
|
)
|
|
(54,930
|
)
|
|||
Long-term debt
|
|
$
|
1,451,526
|
|
|
$
|
1,422,962
|
|
Maturities by year:
|
|
|
||
2020
|
|
$
|
65,846
|
|
2021
|
|
27,085
|
|
|
2022
|
|
17,461
|
|
|
2023
|
|
15,067
|
|
|
2024
|
|
573,822
|
|
|
Thereafter
|
|
818,091
|
|
|
|
|
$
|
1,517,372
|
|
(amounts in thousands)
|
2019
|
|
2018
|
||||
Warranty liability (Note 14)
|
$
|
28,662
|
|
|
$
|
25,939
|
|
Uncertain tax positions (Note 17)
|
20,234
|
|
|
18,951
|
|
||
Workers' compensation claims accrual
|
14,604
|
|
|
14,977
|
|
||
Other liabilities
|
3,190
|
|
|
9,626
|
|
||
Restructuring accrual (Note 23)
|
992
|
|
|
2,005
|
|
||
Over-market lease liabilities
|
—
|
|
|
1,126
|
|
||
Deferred income
|
—
|
|
|
69
|
|
||
Total deferred credits and other liabilities
|
$
|
67,682
|
|
|
$
|
72,693
|
|
(amounts in thousands)
|
2019
|
|
2018
|
|
2017
|
||||||
Domestic (loss) income
|
$
|
(784
|
)
|
|
$
|
192
|
|
|
$
|
(7,346
|
)
|
Foreign income
|
120,829
|
|
|
130,919
|
|
|
149,647
|
|
|||
Total income before taxes, equity earnings
|
$
|
120,045
|
|
|
$
|
131,111
|
|
|
$
|
142,301
|
|
(amounts in thousands)
|
2019
|
|
2018
|
|
2017
|
||||||
Federal
|
$
|
5,037
|
|
|
$
|
(9,760
|
)
|
|
$
|
11,699
|
|
State
|
935
|
|
|
764
|
|
|
667
|
|
|||
Foreign
|
29,264
|
|
|
34,742
|
|
|
29,228
|
|
|||
Current taxes
|
35,236
|
|
|
25,746
|
|
|
41,594
|
|
|||
|
|
|
|
|
|
||||||
Federal
|
11,771
|
|
|
(24,445
|
)
|
|
60,618
|
|
|||
State
|
6,620
|
|
|
(12,760
|
)
|
|
27,241
|
|
|||
Foreign
|
3,447
|
|
|
1,401
|
|
|
8,365
|
|
|||
Deferred taxes
|
21,838
|
|
|
(35,804
|
)
|
|
96,224
|
|
|||
Total provision (benefit) for income taxes
|
$
|
57,074
|
|
|
$
|
(10,058
|
)
|
|
$
|
137,818
|
|
|
2019
|
|
2018
|
|
2017
|
||||||||||||
(amounts in thousands)
|
Amount
|
|
%
|
|
Amount
|
|
%
|
|
Amount
|
|
%
|
||||||
Statutory rate
|
$
|
25,209
|
|
|
21.0
|
|
$
|
27,515
|
|
|
21.0
|
|
$
|
49,805
|
|
|
35.0
|
State income tax, net of federal benefit
|
3,180
|
|
|
2.6
|
|
(1,207
|
)
|
|
(0.9)
|
|
(4,784
|
)
|
|
(3.4)
|
|||
Foreign source dividends and deemed inclusions
|
10,797
|
|
|
9.0
|
|
16,295
|
|
|
12.4
|
|
86,119
|
|
|
60.5
|
|||
Valuation allowance
|
10,144
|
|
|
8.4
|
|
(85,876
|
)
|
|
(65.5)
|
|
98,156
|
|
|
69.0
|
|||
Nondeductible expenses
|
1,276
|
|
|
1.1
|
|
1,097
|
|
|
0.8
|
|
1,950
|
|
|
1.4
|
|||
Acquisition of ABS
|
—
|
|
|
—
|
|
(10,189
|
)
|
|
(7.8)
|
|
—
|
|
|
—
|
|||
Equity based compensation
|
2,526
|
|
|
2.1
|
|
54
|
|
|
—
|
|
(12,718
|
)
|
|
(8.9)
|
|||
Deferred benefit on acquisitions
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
(6,201
|
)
|
|
(4.4)
|
|||
Foreign tax rate differential
|
1,964
|
|
|
1.6
|
|
3,557
|
|
|
2.7
|
|
(17,536
|
)
|
|
(12.3)
|
|||
Tax rate differences and credits
|
(1,867
|
)
|
|
(1.5)
|
|
96,231
|
|
|
73.4
|
|
(91,109
|
)
|
|
(64.0)
|
|||
Uncertain tax positions
|
1,604
|
|
|
1.3
|
|
5,443
|
|
|
4.2
|
|
736
|
|
|
0.5
|
|||
IRS audit adjustments
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
(699
|
)
|
|
(0.5)
|
|||
Termination of hedge accounting
|
4,533
|
|
|
3.8
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|||
U.S. Tax Reform
|
—
|
|
|
—
|
|
(62,836
|
)
|
|
(47.9)
|
|
32,414
|
|
|
22.8
|
|||
Disposition of subsidiary
|
(2,384
|
)
|
|
(2.0)
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|||
Other
|
92
|
|
|
0.1
|
|
(142
|
)
|
|
(0.1)
|
|
1,685
|
|
|
1.1
|
|||
Effective rate for continuing operations
|
$
|
57,074
|
|
|
47.5%
|
|
$
|
(10,058
|
)
|
|
(7.7)%
|
|
$
|
137,818
|
|
|
96.8%
|
(amounts in thousands)
|
2019
|
|
2018
|
||||
Net operating loss and tax credit carryforwards
|
$
|
199,889
|
|
|
$
|
216,563
|
|
Operating lease liabilities
|
54,448
|
|
|
—
|
|
||
Employee benefits and compensation
|
47,760
|
|
|
50,665
|
|
||
Accrued liabilities and other
|
38,300
|
|
|
38,764
|
|
||
Inventory
|
5,842
|
|
|
5,923
|
|
||
Investments and marketable securities
|
2,768
|
|
|
473
|
|
||
Allowance for doubtful accounts and notes receivable
|
1,641
|
|
|
1,573
|
|
||
Deferred credits
|
194
|
|
|
635
|
|
||
Gross deferred tax assets
|
350,842
|
|
|
314,596
|
|
||
Valuation allowance
|
(67,664
|
)
|
|
(57,571
|
)
|
||
Deferred tax assets
|
283,178
|
|
|
257,025
|
|
||
Depreciation and amortization
|
(55,994
|
)
|
|
(58,441
|
)
|
||
Operating lease assets
|
(52,635
|
)
|
|
—
|
|
||
Deferred tax liabilities
|
(108,629
|
)
|
|
(58,441
|
)
|
||
Net deferred tax assets
|
$
|
174,549
|
|
|
$
|
198,584
|
|
Balance sheet presentation:
|
|
|
|
||||
Long-term assets
|
$
|
183,837
|
|
|
$
|
209,062
|
|
Long-term liabilities
|
(9,288
|
)
|
|
(10,478
|
)
|
||
Net deferred tax assets
|
$
|
174,549
|
|
|
$
|
198,584
|
|
(amounts in thousands)
|
2019
|
|
2018
|
|
2017
|
||||||
Balance as of January 1,
|
$
|
(57,571
|
)
|
|
$
|
(144,701
|
)
|
|
$
|
(40,118
|
)
|
Valuation allowances established
|
(2,001
|
)
|
|
(260
|
)
|
|
—
|
|
|||
Changes to existing valuation allowances
|
(8,043
|
)
|
|
85,828
|
|
|
(105,453
|
)
|
|||
Release of valuation allowances
|
—
|
|
|
—
|
|
|
2,006
|
|
|||
Currency translation
|
(49
|
)
|
|
1,562
|
|
|
(1,136
|
)
|
|||
Balance as of December 31,
|
$
|
(67,664
|
)
|
|
$
|
(57,571
|
)
|
|
$
|
(144,701
|
)
|
(amounts in thousands)
|
|
||
2020
|
$
|
3,517
|
|
2021
|
14,079
|
|
|
2022
|
16,074
|
|
|
2023
|
26,845
|
|
|
Thereafter
|
1,153,300
|
|
|
Total loss carryforwards
|
$
|
1,213,815
|
|
(amounts in thousands)
|
EZ Credit
|
|
R & E credit
|
|
Foreign Tax Credit
|
|
Work Opportunity & Welfare to Work Credit
|
|
State Investment Tax Credits
|
|
Tip Credit
|
|
TOTAL
|
||||||||||||||
2020
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
12,975
|
|
|
$
|
—
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
12,977
|
|
2021
|
—
|
|
|
—
|
|
|
14,990
|
|
|
—
|
|
|
26
|
|
|
—
|
|
|
15,016
|
|
|||||||
2022
|
—
|
|
|
—
|
|
|
1,061
|
|
|
—
|
|
|
11
|
|
|
—
|
|
|
1,072
|
|
|||||||
2023
|
—
|
|
|
—
|
|
|
5,735
|
|
|
—
|
|
|
1,656
|
|
|
—
|
|
|
7,391
|
|
|||||||
2024
|
—
|
|
|
—
|
|
|
3,514
|
|
|
—
|
|
|
84
|
|
|
—
|
|
|
3,598
|
|
|||||||
Thereafter
|
68
|
|
|
9,047
|
|
|
8,801
|
|
|
6,696
|
|
|
86
|
|
|
102
|
|
|
24,800
|
|
|||||||
|
$
|
68
|
|
|
$
|
9,047
|
|
|
$
|
47,076
|
|
|
$
|
6,696
|
|
|
$
|
1,865
|
|
|
$
|
102
|
|
|
$
|
64,854
|
|
(amounts in thousands)
|
2019
|
|
2018
|
|
2017
|
||||||
Balance as of January 1,
|
$
|
18,951
|
|
|
$
|
14,519
|
|
|
$
|
12,054
|
|
Increase for tax positions taken during the prior period
|
197
|
|
|
2,620
|
|
|
252
|
|
|||
Decrease for settlements with taxing authorities
|
(126
|
)
|
|
(157
|
)
|
|
(788
|
)
|
|||
(Decrease) increase for tax positions taken during the current period
|
(96
|
)
|
|
300
|
|
|
107
|
|
|||
Currency translation
|
(318
|
)
|
|
(707
|
)
|
|
1,626
|
|
|||
Balance at period end - unrecognized tax benefit
|
18,607
|
|
|
16,575
|
|
|
13,251
|
|
|||
Accrued interest and penalties
|
1,627
|
|
|
2,376
|
|
|
1,268
|
|
|||
|
$
|
20,234
|
|
|
$
|
18,951
|
|
|
$
|
14,519
|
|
(amounts in thousands)
|
North
America
|
|
Europe
|
|
Australasia
|
|
Total Operating
Segments
|
|
Corporate
and
Unallocated
Costs
|
|
Total
Consolidated
|
||||||||||||
Year Ended December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total net revenues
|
$
|
2,535,810
|
|
|
$
|
1,178,589
|
|
|
$
|
585,341
|
|
|
$
|
4,299,740
|
|
|
$
|
—
|
|
|
$
|
4,299,740
|
|
Intersegment net revenues
|
(1,474
|
)
|
|
(148
|
)
|
|
(8,357
|
)
|
|
(9,979
|
)
|
|
—
|
|
|
(9,979
|
)
|
||||||
Net revenues from external customers
|
$
|
2,534,336
|
|
|
$
|
1,178,441
|
|
|
$
|
576,984
|
|
|
$
|
4,289,761
|
|
|
$
|
—
|
|
|
$
|
4,289,761
|
|
Depreciation and amortization
|
$
|
81,905
|
|
|
$
|
28,944
|
|
|
$
|
17,787
|
|
|
$
|
128,636
|
|
|
$
|
5,333
|
|
|
$
|
133,969
|
|
Impairment and restructuring charges
|
7,301
|
|
|
6,182
|
|
|
7,111
|
|
|
20,594
|
|
|
957
|
|
|
21,551
|
|
||||||
Adjusted EBITDA
|
267,335
|
|
|
116,193
|
|
|
74,484
|
|
|
458,012
|
|
|
(42,974
|
)
|
|
415,038
|
|
||||||
Capital expenditures
|
46,799
|
|
|
23,611
|
|
|
32,619
|
|
|
103,029
|
|
|
33,163
|
|
|
136,192
|
|
||||||
Segment assets
|
$
|
1,530,135
|
|
|
$
|
974,076
|
|
|
$
|
510,845
|
|
|
$
|
3,015,056
|
|
|
$
|
366,276
|
|
|
$
|
3,381,332
|
|
Year Ended December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total net revenues
|
$
|
2,462,914
|
|
|
$
|
1,216,204
|
|
|
$
|
681,160
|
|
|
$
|
4,360,278
|
|
|
$
|
—
|
|
|
$
|
4,360,278
|
|
Intersegment net revenues
|
(1,281
|
)
|
|
(905
|
)
|
|
(11,245
|
)
|
|
(13,431
|
)
|
|
—
|
|
|
(13,431
|
)
|
||||||
Net revenues from external customers
|
$
|
2,461,633
|
|
|
$
|
1,215,299
|
|
|
$
|
669,915
|
|
|
$
|
4,346,847
|
|
|
$
|
—
|
|
|
$
|
4,346,847
|
|
Depreciation and amortization
|
$
|
71,945
|
|
|
$
|
31,132
|
|
|
$
|
17,730
|
|
|
$
|
120,807
|
|
|
$
|
4,293
|
|
|
$
|
125,100
|
|
Impairment and restructuring charges
|
4,933
|
|
|
6,111
|
|
|
7,170
|
|
|
18,214
|
|
|
(886
|
)
|
|
17,328
|
|
||||||
Adjusted EBITDA
|
279,526
|
|
|
122,810
|
|
|
90,885
|
|
|
493,221
|
|
|
(34,003
|
)
|
|
459,218
|
|
||||||
Capital expenditures
|
57,805
|
|
|
25,369
|
|
|
12,146
|
|
|
95,320
|
|
|
23,380
|
|
|
118,700
|
|
||||||
Segment assets
|
$
|
1,355,101
|
|
|
$
|
898,901
|
|
|
$
|
482,493
|
|
|
$
|
2,736,495
|
|
|
$
|
311,030
|
|
|
$
|
3,047,525
|
|
Year Ended December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total net revenues
|
$
|
2,159,919
|
|
|
$
|
1,045,036
|
|
|
$
|
572,518
|
|
|
$
|
3,777,473
|
|
|
$
|
—
|
|
|
$
|
3,777,473
|
|
Intersegment net revenues
|
(2,021
|
)
|
|
(2,269
|
)
|
|
(9,434
|
)
|
|
(13,724
|
)
|
|
—
|
|
|
(13,724
|
)
|
||||||
Net revenues from external customers
|
$
|
2,157,898
|
|
|
$
|
1,042,767
|
|
|
$
|
563,084
|
|
|
$
|
3,763,749
|
|
|
$
|
—
|
|
|
$
|
3,763,749
|
|
Depreciation and amortization
|
$
|
66,990
|
|
|
$
|
27,979
|
|
|
$
|
13,248
|
|
|
$
|
108,217
|
|
|
$
|
3,056
|
|
|
$
|
111,273
|
|
Impairment and restructuring charges
|
8,471
|
|
|
3,592
|
|
|
(49
|
)
|
|
12,014
|
|
|
1,042
|
|
|
13,056
|
|
||||||
Adjusted EBITDA
|
273,192
|
|
|
131,200
|
|
|
74,386
|
|
|
478,778
|
|
|
(43,616
|
)
|
|
435,162
|
|
||||||
Capital expenditures
|
34,769
|
|
|
14,889
|
|
|
6,019
|
|
|
55,677
|
|
|
7,372
|
|
|
63,049
|
|
||||||
Segment assets
|
$
|
1,206,849
|
|
|
$
|
918,048
|
|
|
$
|
447,734
|
|
|
$
|
2,572,631
|
|
|
$
|
287,446
|
|
|
$
|
2,860,077
|
|
|
Years Ended December 31,
|
||||||||||
(amounts in thousands)
|
2019
|
|
2018
|
|
2017
|
||||||
Net income
|
$
|
62,971
|
|
|
$
|
141,907
|
|
|
$
|
8,122
|
|
Equity earnings of non-consolidated entities
|
—
|
|
|
(738
|
)
|
|
(3,639
|
)
|
|||
Income tax expense
|
57,074
|
|
|
(10,058
|
)
|
|
137,818
|
|
|||
Depreciation and amortization
|
133,969
|
|
|
125,100
|
|
|
111,273
|
|
|||
Interest expense, net (1)
|
71,778
|
|
|
70,818
|
|
|
79,034
|
|
|||
Impairment and restructuring charges(2)
|
22,748
|
|
|
17,328
|
|
|
13,057
|
|
|||
Gain on previously held shares of equity investment
|
—
|
|
|
(20,767
|
)
|
|
—
|
|
|||
Loss (gain) on sale of property and equipment
|
1,959
|
|
|
144
|
|
|
(299
|
)
|
|||
Share-based compensation expense
|
13,315
|
|
|
15,052
|
|
|
19,785
|
|
|||
Non-cash foreign exchange transaction/translation (income) loss
|
3,438
|
|
|
(1,267
|
)
|
|
(1,178
|
)
|
|||
Other items (3)
|
47,482
|
|
|
117,546
|
|
|
47,000
|
|
|||
Other non-cash items (4)
|
304
|
|
|
3,859
|
|
|
526
|
|
|||
Costs relating to debt restructuring and debt refinancing (5)
|
—
|
|
|
294
|
|
|
23,663
|
|
|||
Adjusted EBITDA
|
$
|
415,038
|
|
|
$
|
459,218
|
|
|
$
|
435,162
|
|
(1)
|
Interest expense for the year ended December 31, 2017 includes $6,097 related to the write-off of a portion of the unamortized debt issuance costs and original issue discount associated with the Term Loan Facility.
|
(2)
|
Impairment and restructuring charges consist of (i) impairment and restructuring charges that are included in our consolidated statements of operations plus (ii) additional charges relating to inventory and/or manufacturing of our products that are included in cost of sales in the accompanying consolidated statements of operations in the amount of $1,197, $0, and $1 for the years ended December 31, 2019, 2018, and 2017, respectively. For further explanation of impairment and restructuring charges that are included in our consolidated statements of operations, see Note 24 - Impairment and Restructuring Charges in our financial statements.
|
(3)
|
Other non-recurring items not core to ongoing business activity include: (i) in the year ended December 31, 2019 (1) $19,147 in facility closure and consolidation costs related to our facility footprint rationalization program, (2) $14,963 in acquisition and integration costs including $7,077 related to purchase price structured by the former owners as retention payments for key employees of a recent acquisition, (3) $12,860 in legal cost and professional fees relating primarily to litigation, (4) $(3,053) of realized gains on hedges of intercompany notes, (5) $1,998 in other miscellaneous costs, (6) $731 in equity compensation to employees in our Australasia region, and (7) $725 in costs related to the departure of former executives.; (ii) in the year ended December 31, 2018, (1) $76,500 in litigation contingency accruals, (2) $26,529 in legal and professional fees relating primarily to litigation, (3) $10,324 in acquisition and integration costs, (4) $(5,396) of realized gains on hedges of intercompany notes, (4) $3,856 in costs related to the departure of former executives, (5) $2,901 in entity consolidation and reorganization costs, (6) $2,347 in miscellaneous costs, and (7) $485 in stock compensation payroll taxes; (iii) in the year ended December 31, 2017, (1) $34,178 in legal costs, (2) $4,176 in realized loss on hedges relating to intercompany notes, (3) $3,484 in acquisition and integration costs, (4) $(2,247) gain on settlement of contract escrow, (5) $2,202 in secondary offering costs, (6) $754 in tax consulting fee, (7) $678 in legal entity consolidation costs, (8) $649 in stock compensation payroll taxes, and (9) $578 in facility ramp down cost.
|
(4)
|
Other non-cash items include: (i) derivative losses of $235 in the year ended December 31, 2019; (ii) charges of $3,740 for the fair value of inventory acquired as part of our Domoferm acquisitions in the year ended December 31, 2018; and (iii) charges of $439 for the fair value adjustment to the inventory acquired as part of our Mattiovi acquisition in the year ended December 31, 2017.
|
(5)
|
Included in the year ended December 31, 2017 is a loss on debt extinguishment of $23,262 associated with the refinancing of our term loan.
|
(amounts in thousands)
|
2019
|
|
2018
|
|
2017
|
||||||
North America:
|
|
|
|
|
|
||||||
U.S.
|
$
|
485,278
|
|
|
$
|
459,506
|
|
|
$
|
402,338
|
|
Other
|
28,096
|
|
|
24,911
|
|
|
25,876
|
|
|||
|
513,374
|
|
|
484,417
|
|
|
428,214
|
|
|||
|
|
|
|
|
|
||||||
Europe
|
181,390
|
|
|
181,038
|
|
|
153,492
|
|
|||
|
|
|
|
|
|
||||||
Australasia:
|
|
|
|
|
|
||||||
Australia
|
115,335
|
|
|
113,922
|
|
|
118,568
|
|
|||
Other
|
28,786
|
|
|
10,297
|
|
|
7,818
|
|
|||
|
144,121
|
|
|
124,219
|
|
|
126,386
|
|
|||
Corporate:
|
|
|
|
|
|
||||||
U.S.
|
25,490
|
|
|
53,729
|
|
|
48,619
|
|
|||
Total property and equipment, net
|
$
|
864,375
|
|
|
$
|
843,403
|
|
|
$
|
756,711
|
|
(amounts in thousands, except share and per share amounts)
|
2019
|
|
2018
|
|
2017
|
||||||
Earnings per share basic:
|
|
|
|
|
|
||||||
Income from continuing operations
|
$
|
62,971
|
|
|
$
|
141,169
|
|
|
$
|
4,483
|
|
Equity earnings of non-consolidated entities
|
—
|
|
|
738
|
|
|
3,639
|
|
|||
Net Income
|
$
|
62,971
|
|
|
$
|
141,907
|
|
|
8,122
|
|
|
Undeclared Series A Convertible Preferred Stock dividends
|
—
|
|
|
—
|
|
|
(10,462
|
)
|
|||
Net income (loss) attributable to common shareholders
|
$
|
62,971
|
|
|
$
|
141,907
|
|
|
$
|
(2,340
|
)
|
|
|
|
|
|
|
||||||
Weighted average outstanding shares of Common Stock basic
|
100,618,105
|
|
|
104,530,572
|
|
|
97,460,676
|
|
|||
|
|
|
|
|
|
||||||
Net income (loss) per share - basic
|
$
|
0.63
|
|
|
$
|
1.36
|
|
|
$
|
(0.02
|
)
|
(amounts in thousands, except share and per share amounts)
|
2019
|
|
2018
|
|
2017
|
||||||
Earnings per share diluted:
|
|
|
|
|
|
||||||
Net income (loss) - attributable to common shareholders
|
$
|
62,971
|
|
|
$
|
141,907
|
|
|
$
|
(2,340
|
)
|
|
|
|
|
|
|
||||||
Weighted average outstanding shares of Common Stock basic
|
100,618,105
|
|
|
104,530,572
|
|
|
97,460,676
|
|
|||
Restricted stock units, performance share units and options to purchase Common Stock
|
846,220
|
|
|
1,830,085
|
|
|
—
|
|
|||
Weighted average outstanding shares of Common Stock diluted
|
101,464,325
|
|
|
106,360,657
|
|
|
97,460,676
|
|
|||
|
|
|
|
|
|
||||||
Net income (loss) per share - diluted
|
$
|
0.62
|
|
|
$
|
1.33
|
|
|
$
|
(0.02
|
)
|
|
2019
|
|
2018
|
|
2017
|
Common Stock options
|
1,657,437
|
|
1,019,930
|
|
545,693
|
Restricted stock units
|
50,113
|
|
87,720
|
|
537
|
Performance share units
|
9,704
|
|
84,809
|
|
—
|
|
2019
|
|
2018
|
|
2017
|
Expected volatility
|
37.90% - 40.02%
|
|
34.81% - 39.68%
|
|
37.36% - 42.83%
|
Expected dividend yield rate
|
0.00%
|
|
0.00%
|
|
0.00%
|
Weighted average term (in years)
|
5.50 - 6.50
|
|
5.50 - 6.50
|
|
5.50 - 6.50
|
Weighted average grant date fair value
|
$8.32
|
|
$12.98
|
|
$11.51
|
Risk free rate
|
1.79% - 2.50%
|
|
2.04% - 2.96%
|
|
1.83% - 2.19%
|
|
Shares
|
|
Weighted Average Exercise Price Per Share
|
|
Aggregate Intrinsic Value (millions)
|
|
Weighted Average Remaining Contract Term in Years
|
||||
Outstanding as of January 1, 2017
|
5,156,976
|
|
$
|
20.40
|
|
|
|
|
|
||
Issued upon conversion of class B-1 Common Stock
|
2,494,553
|
|
11.13
|
|
|
|
|
|
|||
Granted
|
505,122
|
|
27.78
|
|
|
|
|
|
|||
Exercised
|
(2,781,055)
|
|
11.67
|
|
|
|
|
|
|||
Forfeited
|
(448,928)
|
|
15.01
|
|
|
|
|
|
|||
Balance as of December 31, 2017
|
4,926,668
|
|
$
|
14.56
|
|
|
|
|
|
||
Granted
|
838,912
|
|
32.16
|
|
|
|
|
|
|||
Exercised
|
(1,548,484)
|
|
13.79
|
|
|
|
|
|
|||
Forfeited
|
(884,391)
|
|
18.8
|
|
|
|
|
|
|||
Balance as of December 31, 2018
|
3,332,705
|
|
$
|
18.22
|
|
|
|
|
|
||
Granted
|
443,170
|
|
20.94
|
|
|
|
|
|
|||
Exercised
|
(641,706)
|
|
10.56
|
|
|
|
|
|
|||
Forfeited
|
(301,370)
|
|
26.07
|
|
|
|
|
|
|||
Balance as of December 31, 2019
|
2,832,799
|
|
$
|
19.55
|
|
|
$
|
17.0
|
|
|
5.9
|
|
|
|
|
|
|
|
|
||||
Exercisable as of December 31, 2019
|
1,755,821
|
|
$
|
16.47
|
|
|
$
|
14.6
|
|
|
4.6
|
|
Shares
|
|
Weighted Average Grant-Date Fair Value Per Share
|
||
Outstanding as of January 1, 2017
|
385,220
|
|
$
|
22.00
|
|
Granted
|
365,972
|
|
28.89
|
|
|
Vested
|
(175,110)
|
|
18.40
|
|
|
Forfeited
|
(13,714)
|
|
26.02
|
|
|
Balance as of December 31, 2017
|
562,368
|
|
$
|
27.51
|
|
Granted
|
766,927
|
|
29.14
|
|
|
Vested
|
(124,560)
|
|
25.21
|
|
|
Forfeited
|
(530,867)
|
|
29.69
|
|
|
Balance as of December 31, 2018
|
673,868
|
|
$
|
28.07
|
|
Granted
|
952,801
|
|
20.07
|
|
|
Vested
|
(232,666)
|
|
30.08
|
|
|
Forfeited
|
(154,498)
|
|
23.38
|
|
|
Balance as of December 31, 2019
|
1,239,505
|
|
$
|
22.13
|
|
|
Shares
|
|
Weighted Average Grant-Date Fair Value Per Share
|
||
Outstanding as of January 1, 2018
|
—
|
|
$
|
—
|
|
Granted
|
193,763
|
|
31.60
|
|
|
Forfeited
|
(19,093)
|
|
33.31
|
|
|
Balance as of December 31, 2018
|
174,670
|
|
$
|
31.41
|
|
Granted
|
401,935
|
|
22.21
|
|
|
Forfeited
|
(65,832)
|
|
25.24
|
|
|
Balance as of December 31, 2019
|
510,773
|
|
$
|
24.97
|
|
(amounts in thousands)
|
North
America
|
|
Europe
|
|
Australasia
|
|
Corporate
and
Unallocated
Costs
|
|
Total
Consolidated
|
||||||||||
Year Ended December 31, 2019
|
|
|
|
|
|
|
|
|
|||||||||||
Severance costs
|
$
|
3,595
|
|
|
$
|
5,391
|
|
|
$
|
3,542
|
|
|
$
|
1,012
|
|
|
$
|
13,540
|
|
Other exit costs
|
(220
|
)
|
|
634
|
|
|
1,027
|
|
|
(55
|
)
|
|
1,386
|
|
|||||
Total restructuring costs
|
3,375
|
|
|
6,025
|
|
|
4,569
|
|
|
957
|
|
|
14,926
|
|
|||||
Impairments
|
3,926
|
|
|
157
|
|
|
2,542
|
|
|
—
|
|
|
6,625
|
|
|||||
Total impairment and restructuring charges
|
$
|
7,301
|
|
|
$
|
6,182
|
|
|
$
|
7,111
|
|
|
$
|
957
|
|
|
$
|
21,551
|
|
Year Ended December 31, 2018
|
|
|
|
|
|
|
|
|
|||||||||||
Severance costs
|
$
|
2,779
|
|
|
$
|
5,877
|
|
|
$
|
2,884
|
|
|
$
|
226
|
|
|
$
|
11,766
|
|
Other exit costs
|
1,460
|
|
|
256
|
|
|
4,286
|
|
|
(1,670
|
)
|
|
4,332
|
|
|||||
Total restructuring costs
|
4,239
|
|
|
6,133
|
|
|
7,170
|
|
|
(1,444
|
)
|
|
16,098
|
|
|||||
Impairments
|
694
|
|
|
(22
|
)
|
|
—
|
|
|
558
|
|
|
1,230
|
|
|||||
Total impairment and restructuring charges
|
$
|
4,933
|
|
|
$
|
6,111
|
|
|
$
|
7,170
|
|
|
$
|
(886
|
)
|
|
$
|
17,328
|
|
Year Ended December 31, 2017
|
|
|
|
|
|
|
|
|
|||||||||||
Severance costs
|
$
|
6,829
|
|
|
$
|
1,915
|
|
|
$
|
91
|
|
|
$
|
657
|
|
|
$
|
9,492
|
|
Other exit costs
|
1,634
|
|
|
206
|
|
|
(140
|
)
|
|
385
|
|
|
2,085
|
|
|||||
Total restructuring costs
|
8,463
|
|
|
2,121
|
|
|
(49
|
)
|
|
1,042
|
|
|
11,577
|
|
|||||
Impairments
|
8
|
|
|
1,471
|
|
|
—
|
|
|
—
|
|
|
1,479
|
|
|||||
Total impairment and restructuring charges
|
$
|
8,471
|
|
|
$
|
3,592
|
|
|
$
|
(49
|
)
|
|
$
|
1,042
|
|
|
$
|
13,056
|
|
(amounts in thousands)
|
Beginning
Accrual
Balance
|
|
Additions
Charged to
Expense
|
|
Payments
or
Utilization
|
|
Ending
Accrual
Balance
|
||||||||
December 31, 2019
|
|
|
|
|
|
|
|
||||||||
Severance costs
|
$
|
5,352
|
|
|
$
|
13,540
|
|
|
$
|
(13,578
|
)
|
|
$
|
5,314
|
|
Other exit costs
|
3,287
|
|
|
1,386
|
|
|
(2,944
|
)
|
|
1,729
|
|
||||
Total
|
$
|
8,639
|
|
|
$
|
14,926
|
|
|
$
|
(16,522
|
)
|
|
$
|
7,043
|
|
December 31, 2018
|
|
|
|
|
|
|
|
||||||||
Severance costs
|
$
|
7,232
|
|
|
$
|
11,766
|
|
|
$
|
(13,646
|
)
|
|
$
|
5,352
|
|
Other exit costs
|
3,807
|
|
|
4,332
|
|
|
(4,852
|
)
|
|
3,287
|
|
||||
Total
|
$
|
11,039
|
|
|
$
|
16,098
|
|
|
$
|
(18,498
|
)
|
|
$
|
8,639
|
|
December 31, 2017
|
|
|
|
|
|
|
|
||||||||
Severance costs
|
$
|
836
|
|
|
$
|
9,492
|
|
|
$
|
(3,096
|
)
|
|
$
|
7,232
|
|
Other exit costs
|
4,183
|
|
|
2,085
|
|
|
(2,461
|
)
|
|
3,807
|
|
||||
Total
|
$
|
5,019
|
|
|
$
|
11,577
|
|
|
$
|
(5,557
|
)
|
|
$
|
11,039
|
|
(amounts in thousands)
|
2019
|
|
2018
|
|
2017
|
||||||
Pension benefit expense
|
$
|
10,738
|
|
|
$
|
6,975
|
|
|
$
|
12,616
|
|
Foreign currency (gain) loss
|
(7,361
|
)
|
|
(11,258
|
)
|
|
11,429
|
|
|||
Legal settlement income
|
(1,247
|
)
|
|
(7,541
|
)
|
|
(2,456
|
)
|
|||
Gain on sale of business
|
(2,814
|
)
|
|
—
|
|
|
—
|
|
|||
Other items
|
(725
|
)
|
|
(2,296
|
)
|
|
(2,482
|
)
|
|||
Gain on previously held shares of an equity investment
|
—
|
|
|
(20,767
|
)
|
|
—
|
|
|||
Loss on debt extinguishment
|
—
|
|
|
—
|
|
|
23,262
|
|
|||
Settlement of contract escrow
|
—
|
|
|
—
|
|
|
(2,247
|
)
|
|||
Total other (income) expense
|
$
|
(1,409
|
)
|
|
$
|
(34,887
|
)
|
|
$
|
40,122
|
|
|
Derivatives liabilities
|
||||||||
(amounts in thousands)
|
Balance Sheet Location
|
|
December 31,
2019 |
|
December 31,
2018 |
||||
Derivatives not designated as hedging instruments:
|
|
|
|
|
|||||
Foreign currency forward contracts
|
Accrued expenses and other current liabilities
|
|
$
|
4,068
|
|
|
$
|
1,161
|
|
|
December 31, 2019
|
||||||||||||||||||||||
(amounts in thousands)
|
Carrying Amount
|
|
Total
Fair Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Assets measured at NAV (1)
|
||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash equivalents
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Derivative assets, recorded in other current assets
|
1,372
|
|
|
1,372
|
|
|
—
|
|
|
1,372
|
|
|
—
|
|
|
—
|
|
||||||
Derivative assets, recorded in other assets
|
6
|
|
|
6
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
—
|
|
||||||
Pension plan assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and short-term investments
|
8,787
|
|
|
8,787
|
|
|
—
|
|
|
8,787
|
|
|
—
|
|
|
—
|
|
||||||
U.S. Government and agency obligations
|
25,206
|
|
|
25,206
|
|
|
25,206
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Corporate and foreign bonds
|
104,430
|
|
|
104,430
|
|
|
—
|
|
|
104,430
|
|
|
—
|
|
|
—
|
|
||||||
Equity securities
|
28,249
|
|
|
28,249
|
|
|
28,249
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Mutual funds
|
70,230
|
|
|
70,230
|
|
|
—
|
|
|
70,230
|
|
|
—
|
|
|
—
|
|
||||||
Common and collective funds
|
132,600
|
|
|
132,600
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
132,600
|
|
||||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Senior notes
|
$
|
800,000
|
|
|
$
|
823,500
|
|
|
$
|
—
|
|
|
$
|
823,500
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Term loans
|
591,153
|
|
|
593,932
|
|
|
—
|
|
|
593,932
|
|
|
—
|
|
|
—
|
|
||||||
Derivative liabilities, recorded in accrued expenses and deferred credits
|
4,068
|
|
|
4,068
|
|
|
—
|
|
|
4,068
|
|
|
—
|
|
|
—
|
|
|
December 31, 2018
|
||||||||||||||||||||||
(amounts in thousands)
|
Carrying Amount
|
|
Total
Fair Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Assets measured at NAV (1)
|
||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash equivalents
|
$
|
30
|
|
|
$
|
30
|
|
|
$
|
—
|
|
|
$
|
30
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Derivative assets, recorded in other current assets
|
8,234
|
|
|
8,234
|
|
|
—
|
|
|
8,234
|
|
|
—
|
|
|
—
|
|
||||||
Pension plan assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and short-term investments
|
7,254
|
|
|
7,254
|
|
|
—
|
|
|
7,254
|
|
|
—
|
|
|
—
|
|
||||||
U.S. Government and agency obligations
|
24,622
|
|
|
24,622
|
|
|
24,622
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Corporate and foreign bonds
|
90,490
|
|
|
90,490
|
|
|
—
|
|
|
90,490
|
|
|
—
|
|
|
—
|
|
||||||
Equity securities
|
22,378
|
|
|
22,378
|
|
|
22,378
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Mutual funds
|
60,099
|
|
|
60,099
|
|
|
—
|
|
|
60,099
|
|
|
—
|
|
|
—
|
|
||||||
Common and collective funds
|
110,596
|
|
|
110,596
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
110,596
|
|
||||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Senior notes, recorded in long-term debt
|
$
|
800,000
|
|
|
$
|
692,000
|
|
|
$
|
—
|
|
|
$
|
692,000
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Term loans, recorded in long-term debt and current maturities of long-term debt
|
474,058
|
|
|
455,545
|
|
|
—
|
|
|
455,545
|
|
|
—
|
|
|
—
|
|
||||||
Derivative liabilities, recorded in accrued expenses and deferred credits
|
1,161
|
|
|
1,161
|
|
|
—
|
|
|
1,161
|
|
|
—
|
|
|
—
|
|
(1)
|
Certain pension assets that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. These include investments in large cap equity and commingled real estate funds. Redemption of these funds is not subject to restriction.
|
|
December 31, 2019
|
||||||||||||||||||||||
(amounts in thousands)
|
Carrying Value
|
|
Total
Fair Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total Losses
|
||||||||||||
Closed operations
|
$
|
988
|
|
|
$
|
988
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
988
|
|
|
$
|
1,586
|
|
Total
|
$
|
988
|
|
|
$
|
988
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
988
|
|
|
$
|
1,586
|
|
|
December 31, 2018
|
||||||||||||||||||||||
(amounts in thousands)
|
Carrying Value
|
|
Total
Fair Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total Losses
|
||||||||||||
Continuing operations
|
$
|
48
|
|
|
$
|
48
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
48
|
|
|
$
|
175
|
|
Total
|
$
|
48
|
|
|
$
|
48
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
48
|
|
|
$
|
175
|
|
(amounts in thousands)
|
December 31,
2019 |
|
December 31,
2018 |
||||
Self-insurance workers’ compensation
|
$
|
23,638
|
|
|
$
|
22,312
|
|
Legal
|
48,561
|
|
|
861
|
|
||
Liability and other insurance
|
16,678
|
|
|
18,988
|
|
||
Environmental
|
8,186
|
|
|
14,552
|
|
||
Other
|
5,864
|
|
|
10,009
|
|
||
Total outstanding performance bonds and stand-by letters of credit
|
$
|
102,927
|
|
|
$
|
66,722
|
|
(amounts in thousands)
|
|
|
|
||||
Change in fair value of plan assets - U.S. benefit plan
|
2019
|
|
2018
|
||||
Balance as of January 1,
|
$
|
302,763
|
|
|
$
|
339,751
|
|
Actual return on plan assets
|
69,767
|
|
|
(20,466
|
)
|
||
Company contribution
|
7,760
|
|
|
4,125
|
|
||
Benefits paid
|
(16,751
|
)
|
|
(15,965
|
)
|
||
Administrative expenses paid
|
(4,962
|
)
|
|
(4,682
|
)
|
||
Balance at period end
|
$
|
358,577
|
|
|
$
|
302,763
|
|
|
% of Plan Assets
|
||
Summary of plan investments - U.S. benefit plan
|
2019
|
|
2018
|
Equity securities
|
7.9
|
|
7.4
|
Debt securities
|
36.1
|
|
38.0
|
Other
|
56.0
|
|
54.6
|
|
100.0
|
|
100.0
|
2020
|
$
|
19,444
|
|
2021
|
19,284
|
|
|
2022
|
20,040
|
|
|
2023
|
20,687
|
|
|
2024
|
21,329
|
|
|
2025-2029
|
112,907
|
|
|
% of Plan Assets
|
||
Summary of plan investments - Non-U.S. benefit plans
|
2019
|
|
2018
|
Equity securities
|
45.8
|
|
48.4
|
Debt securities
|
20.7
|
|
20.8
|
Other
|
33.5
|
|
30.8
|
|
100.0
|
|
100.0
|
2020
|
$
|
3,012
|
|
2021
|
2,696
|
|
|
2022
|
2,540
|
|
|
2023
|
2,789
|
|
|
2024
|
3,694
|
|
|
2025-2029
|
14,437
|
|
(amounts in thousands)
|
2019
|
|
2018
|
|
2017
|
||||||
Cash Operating Activities:
|
|
|
|
|
|
||||||
Operating leases
|
$
|
55,141
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Finance leases
|
131
|
|
|
—
|
|
|
—
|
|
|||
Cash paid for amounts included in the measurement of lease liabilities
|
$
|
55,272
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
||||||
Cash Investing Activities:
|
|
|
|
|
|
||||||
Issuances of notes receivable
|
$
|
(58
|
)
|
|
$
|
(77
|
)
|
|
$
|
(61
|
)
|
Cash received on notes receivable
|
469
|
|
|
351
|
|
|
2,052
|
|
|||
Change in notes receivable
|
$
|
411
|
|
|
$
|
274
|
|
|
$
|
1,991
|
|
|
|
|
|
|
|
||||||
Non-cash Investing Activities:
|
|
|
|
|
|
||||||
Property, equipment and intangibles purchased in accounts payable
|
$
|
10,439
|
|
|
$
|
6,961
|
|
|
$
|
15,099
|
|
Property, equipment and intangibles purchased for debt
|
40,323
|
|
|
32,262
|
|
|
791
|
|
|||
Notes receivable and accrued interest from employees and directors settled with return of JWH stock
|
—
|
|
|
—
|
|
|
183
|
|
|||
Customer accounts receivable converted to notes receivable
|
565
|
|
|
110
|
|
|
393
|
|
|||
|
|
|
|
|
|
||||||
Cash Financing Activities:
|
|
|
|
|
|
||||||
Proceeds from issuance of new debt, net of discount
|
$
|
124,375
|
|
|
$
|
38,823
|
|
|
$
|
1,240,000
|
|
Borrowings on long-term debt
|
3,249
|
|
|
104,419
|
|
|
5,334
|
|
|||
Payments of long-term debt
|
(113,859
|
)
|
|
(72,422
|
)
|
|
(1,618,641
|
)
|
|||
Payments of debt issuance and extinguishment costs, including underwriting fees
|
(664
|
)
|
|
(352
|
)
|
|
(16,358
|
)
|
|||
Change in long-term debt
|
$
|
13,101
|
|
|
$
|
70,468
|
|
|
$
|
(389,665
|
)
|
|
|
|
|
|
|
||||||
Cash paid for amounts included in the measurement of finance lease liabilities
|
$
|
917
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
||||||
Non-cash Financing Activities:
|
|
|
|
|
|
||||||
Prepaid insurance funded through short-term debt borrowings
|
$
|
4,948
|
|
|
$
|
2,757
|
|
|
$
|
2,662
|
|
Prepaid ERP costs funded through short-term debt borrowings
|
3,919
|
|
|
—
|
|
|
—
|
|
|||
Shares surrendered for tax obligations for employee share-based transactions in accrued liabilities
|
469
|
|
|
7
|
|
|
569
|
|
|||
Accounts payable converted to installment notes
|
757
|
|
|
12,886
|
|
|
—
|
|
|||
|
|
|
|
|
|
||||||
Other Supplemental Cash Flow Information:
|
|
|
|
|
|
||||||
Cash taxes paid, net of refunds
|
$
|
26,656
|
|
|
$
|
46,295
|
|
|
$
|
22,532
|
|
Cash interest paid
|
71,181
|
|
|
68,892
|
|
|
66,060
|
|
|
Twelve months ended
|
||||||||||
|
December 31, 2017
|
||||||||||
(amounts in thousands, except per share data)
|
As Reported
|
|
Correction
|
|
As Revised
|
||||||
Consolidated Statement of Operations:
|
|
|
|
|
|
||||||
Cost of sales
|
$
|
2,914,327
|
|
|
$
|
1,905
|
|
|
$
|
2,916,232
|
|
Gross margin
|
$
|
849,422
|
|
|
$
|
(1,905
|
)
|
|
$
|
847,517
|
|
Selling, general and administrative
|
$
|
572,458
|
|
|
$
|
546
|
|
|
$
|
573,004
|
|
Operating income (loss)
|
$
|
263,908
|
|
|
$
|
(2,451
|
)
|
|
$
|
261,457
|
|
Other (income) expense
|
$
|
15,857
|
|
|
$
|
1,003
|
|
|
$
|
16,860
|
|
Income before taxes, equity earnings and discontinued operations
|
$
|
145,755
|
|
|
$
|
(3,454
|
)
|
|
$
|
142,301
|
|
Income tax expense (benefit)
|
$
|
138,603
|
|
|
$
|
(785
|
)
|
|
$
|
137,818
|
|
Income from continuing operations, net of tax
|
$
|
7,152
|
|
|
$
|
(2,669
|
)
|
|
$
|
4,483
|
|
Net income
|
$
|
10,791
|
|
|
$
|
(2,669
|
)
|
|
$
|
8,122
|
|
Net income (loss) attributable to common shareholders
|
$
|
329
|
|
|
$
|
(2,669
|
)
|
|
$
|
(2,340
|
)
|
|
|
|
|
|
|
||||||
Weighted Average Common Shares:
|
|
|
|
|
|
||||||
Basic
|
97,460,676
|
|
|
—
|
|
|
97,460,676
|
|
|||
Diluted
|
101,462,135
|
|
|
(4,001,459
|
)
|
|
97,460,676
|
|
|||
Income (loss) per share from continuing operations:
|
|
|
|
|
|
||||||
Basic
|
$
|
—
|
|
|
$
|
(0.02
|
)
|
|
$
|
(0.02
|
)
|
Diluted
|
$
|
—
|
|
|
$
|
(0.02
|
)
|
|
$
|
(0.02
|
)
|
Net income (loss) per share:
|
|
|
|
|
|
||||||
Basic
|
$
|
—
|
|
|
$
|
(0.02
|
)
|
|
$
|
(0.02
|
)
|
Diluted
|
$
|
—
|
|
|
$
|
(0.02
|
)
|
|
$
|
(0.02
|
)
|
|
December 31, 2018
|
||||||||||
(amounts in thousands)
|
As Reported
|
|
Correction
|
|
As Revised
|
||||||
Consolidated Balance Sheet:
|
|
|
|
|
|
||||||
Accounts receivable, net
|
$
|
471,655
|
|
|
$
|
188
|
|
|
$
|
471,843
|
|
Inventories
|
$
|
513,238
|
|
|
$
|
(4,739
|
)
|
|
$
|
508,499
|
|
Other current assets
|
$
|
48,961
|
|
|
$
|
(287
|
)
|
|
$
|
48,674
|
|
Total current assets
|
$
|
1,151,477
|
|
|
$
|
(4,838
|
)
|
|
$
|
1,146,639
|
|
Deferred tax assets
|
$
|
207,065
|
|
|
$
|
1,997
|
|
|
$
|
209,062
|
|
Other assets
|
$
|
37,615
|
|
|
$
|
(689
|
)
|
|
$
|
36,926
|
|
Total assets
|
$
|
3,051,055
|
|
|
$
|
(3,530
|
)
|
|
$
|
3,047,525
|
|
Accounts payable
|
$
|
250,281
|
|
|
$
|
(303
|
)
|
|
$
|
249,978
|
|
Accrued payroll and benefits
|
$
|
114,784
|
|
|
$
|
234
|
|
|
$
|
115,018
|
|
Accrued expenses and other current liabilities
|
$
|
250,274
|
|
|
$
|
2,036
|
|
|
$
|
252,310
|
|
Total current liabilities
|
$
|
670,269
|
|
|
$
|
1,967
|
|
|
$
|
672,236
|
|
Deferred credits and other liabilities(1)
|
$
|
72,038
|
|
|
$
|
672
|
|
|
$
|
72,710
|
|
Deferred tax liabilities
|
$
|
10,457
|
|
|
$
|
21
|
|
|
$
|
10,478
|
|
Total liabilities
|
$
|
2,283,248
|
|
|
$
|
2,660
|
|
|
$
|
2,285,908
|
|
Retained earnings
|
$
|
253,041
|
|
|
$
|
(6,208
|
)
|
|
$
|
246,833
|
|
Accumulated other comprehensive loss
|
$
|
(144,823
|
)
|
|
$
|
18
|
|
|
$
|
(144,805
|
)
|
Total shareholders' equity attributable to common shareholders
|
$
|
767,824
|
|
|
$
|
(6,190
|
)
|
|
$
|
761,634
|
|
Total shareholders' equity(1)
|
$
|
767,807
|
|
|
$
|
(6,190
|
)
|
|
$
|
761,617
|
|
Total liabilities and shareholders’ equity
|
$
|
3,051,055
|
|
|
$
|
(3,530
|
)
|
|
$
|
3,047,525
|
|
(1)
|
Non-controlling interest of $17 at December 31, 2018 has been reclassified to Deferred credits and other liabilities to conform to the current year’s presentation.
|
|
Twelve months ended
|
||||||||||
|
December 31, 2018
|
||||||||||
(amounts in thousands, except per share data)
|
As Reported
|
|
Correction
|
|
As Revised
|
||||||
Consolidated Statement of Operations:
|
|
|
|
|
|
||||||
Net revenues
|
$
|
4,346,703
|
|
|
$
|
144
|
|
|
$
|
4,346,847
|
|
Cost of sales
|
$
|
3,422,969
|
|
|
$
|
5,342
|
|
|
$
|
3,428,311
|
|
Gross margin
|
$
|
923,734
|
|
|
$
|
(5,198
|
)
|
|
$
|
918,536
|
|
Selling, general and administrative
|
$
|
733,748
|
|
|
$
|
418
|
|
|
$
|
734,166
|
|
Operating income (loss)
|
$
|
172,658
|
|
|
$
|
(5,616
|
)
|
|
$
|
167,042
|
|
Other (income) expense(1)
|
$
|
(12,970
|
)
|
|
$
|
(1,063
|
)
|
|
$
|
(14,033
|
)
|
Income before taxes and equity earnings
|
$
|
135,577
|
|
|
$
|
(4,553
|
)
|
|
$
|
131,024
|
|
Income tax expense (benefit)
|
$
|
(7,958
|
)
|
|
$
|
(2,100
|
)
|
|
$
|
(10,058
|
)
|
Income from continuing operations, net of tax
|
$
|
143,535
|
|
|
$
|
(2,453
|
)
|
|
$
|
141,082
|
|
Net income
|
$
|
144,273
|
|
|
$
|
(2,453
|
)
|
|
$
|
141,820
|
|
Net income (loss) attributable to common shareholders(1)
|
$
|
144,360
|
|
|
$
|
(2,453
|
)
|
|
$
|
141,907
|
|
|
|
|
|
|
|
||||||
Weighted Average Common Shares:
|
|
|
|
|
|
||||||
Basic
|
104,530,572
|
|
|
—
|
|
|
104,530,572
|
|
|||
Diluted
|
106,360,657
|
|
|
—
|
|
|
106,360,657
|
|
|||
Income (loss) per share from continuing operations:
|
|
|
|
|
|
||||||
Basic
|
$
|
1.38
|
|
|
$
|
(0.02
|
)
|
|
$
|
1.36
|
|
Diluted
|
$
|
1.36
|
|
|
$
|
(0.03
|
)
|
|
$
|
1.33
|
|
Net income (loss) per share:
|
|
|
|
|
|
||||||
Basic
|
$
|
1.38
|
|
|
$
|
(0.02
|
)
|
|
$
|
1.36
|
|
Diluted
|
$
|
1.36
|
|
|
$
|
(0.03
|
)
|
|
$
|
1.33
|
|
(1)
|
Non-controlling interest of $87 for the twelve months ended December 31, 2018 has been reclassified to Other (income) expense to conform to the current year’s presentation.
|
|
Twelve months ended
|
||||||||||
|
December 31, 2017
|
||||||||||
(amounts in thousands)
|
As Reported
|
|
Correction
|
|
As Revised
|
||||||
Net income
|
$
|
10,791
|
|
|
$
|
(2,669
|
)
|
|
$
|
8,122
|
|
Income tax (benefit) expense
|
$
|
138,603
|
|
|
$
|
(785
|
)
|
|
$
|
137,818
|
|
Non-cash foreign exchange transaction/translation (income) loss
|
$
|
(2,181
|
)
|
|
$
|
1,003
|
|
|
$
|
(1,178
|
)
|
Adjusted EBITDA
|
$
|
437,613
|
|
|
$
|
(2,451
|
)
|
|
$
|
435,162
|
|
|
Twelve months ended
|
||||||||||
|
December 31, 2018
|
||||||||||
(amounts in thousands)
|
As Reported
|
|
Correction
|
|
As Revised
|
||||||
Net income
|
$
|
144,273
|
|
|
$
|
(2,453
|
)
|
|
$
|
141,820
|
|
Income tax (benefit) expense
|
$
|
(7,958
|
)
|
|
$
|
(2,100
|
)
|
|
$
|
(10,058
|
)
|
Non-cash foreign exchange transaction/translation (income) loss
|
$
|
8
|
|
|
$
|
(1,275
|
)
|
|
$
|
(1,267
|
)
|
Other items
|
$
|
117,933
|
|
|
$
|
(300
|
)
|
|
$
|
117,633
|
|
Adjusted EBITDA
|
$
|
465,346
|
|
|
$
|
(6,128
|
)
|
|
$
|
459,218
|
|
|
Twelve months ended
|
||||||||||||||||||||||
|
December 31, 2017
|
||||||||||||||||||||||
(amounts in thousands)
|
North
America |
|
Europe
|
|
Australasia
|
|
Total Operating
Segments |
|
Corporate
and Unallocated Costs |
|
Total
Consolidated |
||||||||||||
As Reported
|
$
|
273,594
|
|
|
$
|
132,929
|
|
|
$
|
74,706
|
|
|
$
|
481,229
|
|
|
$
|
(43,616
|
)
|
|
$
|
437,613
|
|
Correction
|
(402
|
)
|
|
(1,729
|
)
|
|
(320
|
)
|
|
(2,451
|
)
|
|
—
|
|
|
(2,451
|
)
|
||||||
As Revised
|
$
|
273,192
|
|
|
$
|
131,200
|
|
|
$
|
74,386
|
|
|
$
|
478,778
|
|
|
$
|
(43,616
|
)
|
|
$
|
435,162
|
|
|
Twelve months ended
|
||||||||||||||||||||||
|
December 31, 2018
|
||||||||||||||||||||||
(amounts in thousands)
|
North
America |
|
Europe
|
|
Australasia
|
|
Total Operating
Segments |
|
Corporate
and Unallocated Costs |
|
Total
Consolidated |
||||||||||||
As Reported
|
$
|
278,975
|
|
|
$
|
129,202
|
|
|
$
|
91,172
|
|
|
$
|
499,349
|
|
|
$
|
(34,003
|
)
|
|
$
|
465,346
|
|
Correction
|
551
|
|
|
(6,392
|
)
|
|
(287
|
)
|
|
(6,128
|
)
|
|
—
|
|
|
(6,128
|
)
|
||||||
As Revised
|
$
|
279,526
|
|
|
$
|
122,810
|
|
|
$
|
90,885
|
|
|
$
|
493,221
|
|
|
$
|
(34,003
|
)
|
|
$
|
459,218
|
|
|
Three Months Ended
|
||||||||||||||
|
Mar. 30,
2019(1)(2)
|
|
Jun. 29,
2019(2)
|
|
Sep. 28,
2019
|
|
Dec. 31,
2019
|
||||||||
|
(dollars in thousands)
|
||||||||||||||
Statements of Operations Data:
|
|
|
|
|
|
|
|
||||||||
Net revenues
|
$
|
1,010,260
|
|
|
$
|
1,118,987
|
|
|
$
|
1,091,953
|
|
|
$
|
1,068,561
|
|
Gross margin
|
208,129
|
|
|
240,219
|
|
|
223,785
|
|
|
200,406
|
|
||||
Operating income
|
40,310
|
|
|
57,900
|
|
|
54,426
|
|
|
37,778
|
|
||||
Income before taxes and equity earnings
|
26,126
|
|
|
34,537
|
|
|
39,542
|
|
|
19,840
|
|
||||
Net income
|
15,777
|
|
|
22,356
|
|
|
17,042
|
|
|
7,796
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Net income per share basic
|
$
|
0.16
|
|
|
$
|
0.22
|
|
|
$
|
0.17
|
|
|
$
|
0.08
|
|
Net income per share diluted
|
$
|
0.16
|
|
|
$
|
0.22
|
|
|
$
|
0.17
|
|
|
$
|
0.08
|
|
(1)
|
We plan to revise the three months ended March 30, 2019 in connection with future filings. Refer to Note 32 - Revision of Prior Period Financial Statements.
|
(2)
|
The prior period information has been reclassified to conform to current period presentation.
|
|
Three Months Ended(1)(2)
|
||||||||||||||
|
Mar. 31,
2018
|
|
Jun. 30,
2018
|
|
Sep. 29,
2018
|
|
Dec. 31,
2018
|
||||||||
|
(dollars in thousands)
|
||||||||||||||
Statements of Operations Data:
|
|
|
|
|
|
|
|
||||||||
Net revenues
|
$
|
946,165
|
|
|
$
|
1,172,465
|
|
|
$
|
1,136,478
|
|
|
$
|
1,091,739
|
|
Gross margin
|
204,586
|
|
|
248,102
|
|
|
241,475
|
|
|
224,373
|
|
||||
Operating income
|
36,730
|
|
|
70,264
|
|
|
7,293
|
|
|
52,755
|
|
||||
Income before taxes and equity earnings
|
35,538
|
|
|
57,449
|
|
|
(3,049
|
)
|
|
41,173
|
|
||||
Net income
|
40,404
|
|
|
34,776
|
|
|
28,637
|
|
|
38,090
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Net income per share basic
|
$
|
0.38
|
|
|
$
|
0.33
|
|
|
$
|
0.27
|
|
|
$
|
0.37
|
|
Net income per share diluted
|
$
|
0.37
|
|
|
$
|
0.32
|
|
|
$
|
0.27
|
|
|
$
|
0.37
|
|
(1)
|
We have revised the prior period information for the three months ended March 31, 2018, June 30, 2018, September 29, 2018 and December 31, 2018 to reflect the correction of errors and other accumulated misstatements disclosed in Note 32 - Revision of Prior Period Financial Statements.
|
(2)
|
The prior period information has been reclassified to conform to current period presentation.
|
|
|
For the Years Ended December 31,
|
||||||||||
(amounts in thousands, except share and per share data)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Selling, general and administrative
|
|
$
|
15,397
|
|
|
$
|
15,924
|
|
|
$
|
23,457
|
|
Equity in earnings of subsidiaries
|
|
77,950
|
|
|
157,429
|
|
|
31,191
|
|
|||
Other (income) expense
|
|
|
|
|
|
|
||||||
Interest income
|
|
(32
|
)
|
|
(36
|
)
|
|
(35
|
)
|
|||
Interest expense
|
|
12
|
|
|
45
|
|
|
73
|
|
|||
Other
|
|
(398
|
)
|
|
(411
|
)
|
|
(426
|
)
|
|||
Income before taxes
|
|
62,971
|
|
|
141,907
|
|
|
8,122
|
|
|||
Income tax (benefit) expense
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Net income
|
|
$
|
62,971
|
|
|
$
|
141,907
|
|
|
$
|
8,122
|
|
|
|
|
|
|
|
|
||||||
Comprehensive income (loss):
|
|
|
|
|
|
|
||||||
Net income
|
|
$
|
62,971
|
|
|
$
|
141,907
|
|
|
$
|
8,122
|
|
Other comprehensive (loss) income, net of tax
|
|
|
|
|
|
|
||||||
Equity in comprehensive (loss) income of subsidiaries
|
|
(6,470
|
)
|
|
(50,312
|
)
|
|
102,689
|
|
|||
Total other comprehensive (loss) income, net of tax
|
|
(6,470
|
)
|
|
(50,312
|
)
|
|
102,689
|
|
|||
Total comprehensive income
|
|
$
|
56,501
|
|
|
$
|
91,595
|
|
|
$
|
110,811
|
|
(amounts in thousands, except share and per share data)
|
|
December 31, 2019
|
|
December 31, 2018
|
||||
ASSETS
|
|
|
|
|
||||
Current assets
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
4,818
|
|
|
$
|
2,289
|
|
Receivable from subsidiaries
|
|
—
|
|
|
1,000
|
|
||
Other current assets
|
|
10
|
|
|
20
|
|
||
Total current assets
|
|
4,828
|
|
|
3,309
|
|
||
Property and equipment, net
|
|
3,074
|
|
|
3,202
|
|
||
Investment in subsidiaries
|
|
959,001
|
|
|
903,504
|
|
||
Long-term notes receivable
|
|
35
|
|
|
147
|
|
||
Total assets
|
|
$
|
966,938
|
|
|
$
|
910,162
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
||||
Current liabilities
|
|
|
|
|
||||
Accounts payable
|
|
$
|
510
|
|
|
$
|
37
|
|
Current payable to subsidiaries
|
|
2,431
|
|
|
2,649
|
|
||
Accrued expenses and other current liabilities
|
|
430
|
|
|
75
|
|
||
Notes payable and current maturities of long-term debt
|
|
205
|
|
|
757
|
|
||
Total current liabilities
|
|
3,576
|
|
|
3,518
|
|
||
Long-term debt
|
|
—
|
|
|
205
|
|
||
Total liabilities
|
|
3,576
|
|
|
3,723
|
|
||
Commitments and contingencies (Note 5)
|
|
|
|
|
||||
Shareholders’ equity
|
|
|
|
|
||||
Common Stock: 900,000,000 shares authorized, par value $0.01 per share, 100,668,003 shares outstanding as of December 31, 2019; 900,000,000 shares authorized, par value $0.01 per share, 101,310,862 shares outstanding as of December 31, 2018
|
|
1,007
|
|
|
1,013
|
|
||
Additional paid-in capital
|
|
671,772
|
|
|
658,593
|
|
||
Retained earnings
|
|
290,583
|
|
|
246,833
|
|
||
Total shareholders’ equity
|
|
963,362
|
|
|
906,439
|
|
||
Total liabilities, convertible preferred shares, and shareholders’ equity
|
|
$
|
966,938
|
|
|
$
|
910,162
|
|
|
|
For the Years Ended December 31,
|
||||||||||
(amounts in thousands)
|
|
2019
|
|
2018
|
|
2017
|
||||||
OPERATING ACTIVITIES
|
|
|
|
|
|
|
||||||
Net income
|
|
$
|
62,971
|
|
|
$
|
141,907
|
|
|
$
|
8,122
|
|
Adjustments to reconcile net income to cash used in operating activities:
|
|
|
|
|
|
|
||||||
Depreciation
|
|
128
|
|
|
161
|
|
|
139
|
|
|||
Income from subsidiaries investment
|
|
(77,950
|
)
|
|
(157,429
|
)
|
|
(31,191
|
)
|
|||
Other items, net
|
|
436
|
|
|
538
|
|
|
191
|
|
|||
Stock-based compensation
|
|
13,315
|
|
|
15,052
|
|
|
19,785
|
|
|||
Net change in operating assets and liabilities, net of effect of acquisitions:
|
|
|
|
|
|
|
||||||
Receivables and payables from subsidiaries
|
|
19,564
|
|
|
123,366
|
|
|
(24,020
|
)
|
|||
Other assets
|
|
10
|
|
|
(5
|
)
|
|
(15
|
)
|
|||
Accounts payable and accrued expenses
|
|
829
|
|
|
(859
|
)
|
|
(882
|
)
|
|||
Net cash (used in) provided by operating activities
|
|
19,303
|
|
|
122,731
|
|
|
(27,871
|
)
|
|||
INVESTING ACTIVITIES
|
|
|
|
|
|
|
||||||
Additional Investment in subsidiaries
|
|
—
|
|
|
—
|
|
|
(480,306
|
)
|
|||
Cash received on notes receivable
|
|
—
|
|
|
—
|
|
|
17
|
|
|||
Proceeds from sales of subsidiaries' shares
|
|
—
|
|
|
—
|
|
|
30,181
|
|
|||
Distribution received from subsidiaries
|
|
2,000
|
|
|
1,500
|
|
|
1,000
|
|
|||
Net cash provided by (used in) investing activities
|
|
2,000
|
|
|
1,500
|
|
|
(449,108
|
)
|
|||
FINANCING ACTIVITIES
|
|
|
|
|
|
|
||||||
Payments of long-term debt
|
|
(757
|
)
|
|
(982
|
)
|
|
(861
|
)
|
|||
Employee note repayments
|
|
—
|
|
|
39
|
|
|
26
|
|
|||
Common stock issued for exercise of options
|
|
1,977
|
|
|
201
|
|
|
1,029
|
|
|||
Common stock repurchased
|
|
(19,994
|
)
|
|
(125,030
|
)
|
|
—
|
|
|||
Proceeds from sale of common stock, net of underwriting fees and commissions
|
|
—
|
|
|
—
|
|
|
480,306
|
|
|||
Payments associated with initial public offering
|
|
—
|
|
|
—
|
|
|
(2,066
|
)
|
|||
Net cash (used in) provided by financing activities
|
|
(18,774
|
)
|
|
(125,772
|
)
|
|
478,434
|
|
|||
|
|
|
|
|
|
|
||||||
Net increase (decrease) in cash and cash equivalents
|
|
2,529
|
|
|
(1,541
|
)
|
|
1,455
|
|
|||
Cash, cash equivalents and restricted cash, beginning
|
|
2,289
|
|
|
3,830
|
|
|
2,375
|
|
|||
Cash, cash equivalents and restricted cash, ending
|
|
$
|
4,818
|
|
|
$
|
2,289
|
|
|
$
|
3,830
|
|
Buildings
|
15 - 45 years
|
(amounts in thousands)
|
2019
|
|
2018
|
||||
Buildings
|
$
|
3,632
|
|
|
$
|
3,632
|
|
Total depreciable assets
|
3,632
|
|
|
3,632
|
|
||
Accumulated depreciation
|
(558
|
)
|
|
(430
|
)
|
||
Total property and equipment, net
|
$
|
3,074
|
|
|
$
|
3,202
|
|
(amounts in thousands)
|
2019 Year-end Effective Interest Rate
|
|
2019
|
|
2018
|
||||
Installment notes for stock
|
4.75%
|
|
$
|
205
|
|
|
$
|
962
|
|
Current maturities of long-term debt
|
|
(205
|
)
|
|
(757
|
)
|
|||
Long-term debt
|
|
$
|
—
|
|
|
$
|
205
|
|
Maturities by year:
|
|
|
||
2020
|
|
$
|
205
|
|
2021
|
|
—
|
|
|
2022
|
|
—
|
|
|
2023
|
|
—
|
|
|
2024
|
|
—
|
|
|
Thereafter
|
|
—
|
|
|
|
|
$
|
205
|
|
(amounts in thousands)
|
2019
|
|
2018
|
|
2017
|
||||||
Non-cash Investing Activities:
|
|
|
|
|
|
||||||
Notes receivable and accrued interest from employees and directors settled with return of JWH stock
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
183
|
|
Dividend from subsidiary settled with payable to subsidiary
|
22,090
|
|
|
132,295
|
|
|
—
|
|
|||
|
|
|
|
|
|
||||||
Non-cash Financing Activities:
|
|
|
|
|
|
||||||
Shares surrendered for tax obligations for employee share-based transactions in accrued liabilities
|
$
|
469
|
|
|
$
|
7
|
|
|
$
|
569
|
|
Costs associated with initial public offering formerly capitalized in prepaid expenses
|
—
|
|
|
—
|
|
|
5,857
|
|
|
•
|
|
authorize the issuance of blank check preferred stock that our board of directors could issue to increase the number of outstanding shares and to discourage a takeover attempt;
|
|
•
|
|
divide our board of directors into three classes with staggered three-year terms;
|
|
•
|
|
provide that shareholders may remove directors only “for cause”;
|
|
•
|
|
prohibit our shareholders from calling a special meeting of shareholders;
|
|
•
|
|
prohibit shareholder action by written consent, which requires all shareholder actions to be taken at a meeting of our shareholders;
|
|
•
|
|
provide that the board of directors is expressly authorized to adopt, alter, or repeal our bylaws;
|
|
•
|
|
establish advance notice requirements for nominations for election to our board of directors or for proposing matters that can be acted upon by shareholders at shareholder meetings; and
|
|
•
|
|
require the approval of holders of at least two-thirds of the outstanding shares of common stock to amend our amended and restated bylaws and certain provisions of our restated certificate of incorporation.
|
Re:
|
Corporate Governance and Director Nominations
|
1.
|
Unless otherwise requested by the Company in writing, at the Company’s 2020 annual meeting of stockholders (the “2020 Annual Meeting”), and if necessary at the Company’s 2021 annual meeting of stockholders (the “2021 Annual Meeting”), we agree to vote, and to cause to be voted, all shares of the Company’s common stock (“Common Stock”) beneficially owned by any Onex Entities in favor of the Company’s proposals to amend the Company’s certificate of incorporation and bylaws, as applicable, to (i) declassify the Board during a transition period beginning as of the 2020 Annual Meeting (or, if not approved until the 2021 Annual Meeting, a transition period beginning as of the 2021 Annual Meeting), (ii) eliminate the supermajority approval requirements for removal of directors or amendments to the Company’s certificate of incorporation and bylaws, (iii) permit stockholders holding, in the aggregate, at least twenty five percent (25%) (whether by legal or beneficial ownership) of the Common Stock to call special meetings of the stockholders, and (iv) permit stockholders to act by written consent. The proposed amendment to the Company’s certificate of incorporation shall be substantially in the form attached as Exhibit I to this letter agreement and the proposed amendment to the Company’s bylaws shall be substantially in the form attached as Exhibit II to this letter agreement.
|
2.
|
|
a.
|
Subject to the other provisions of this letter agreement, at any annual or special meeting of the Company’s stockholders at which the election of directors is an item of business to be conducted, the Company shall nominate each Onex Nominee (as defined below) for election to the Board.
|
b.
|
The “Onex Nominees” shall mean (a) for so long as the Onex Entities beneficially own and have a pecuniary interest in, in the aggregate, at least twenty percent (20%) of the Common Stock, two (2) qualified persons designated by Onex for nomination for election to the Board at the annual or special meeting and (b) for so long as the Onex Entities beneficially own and have a pecuniary interest in, in the aggregate, less than twenty percent (20%) but greater than twelve and a half percent (12.5%) of the Common Stock, one (1) qualified person designated by Onex for nomination for election to the Board at the annual or special meeting. In order for each Onex Nominee to be qualified to serve as a director, such Onex Nominee must be qualified in accordance with all relevant standards and requirements of applicable law and stock exchange rules, in each case, as determined by the Governance and Nominating Committee of the Board, acting reasonably and in good faith, and such Onex Nominee must otherwise be acceptable to the Governance and Nominating Committee of the Board, acting reasonably and in good faith.
|
c.
|
As used herein the “Onex Entities” means Onex and any affiliated fund that is managed, advised or controlled by Onex, directly or indirectly, but, for the avoidance of doubt, does not include any portfolio company of any such fund.
|
d.
|
Subject to the other provisions of this letter agreement, the Company shall, to the fullest extent permitted by law, include each Onex Nominee in the slate of nominees recommended by the Board for election at each meeting of stockholders called for the purpose of electing directors, and shall use its reasonable best efforts to cause the election of such Onex Nominee to the Board, including nominating such Onex Nominee to be elected as a director, recommending such Onex Nominee for election as a director and soliciting proxies in favor thereof. Subject to the other provisions of this letter agreement, if a vacancy is created at any time by virtue of the death, disability, retirement, removal or resignation of any Onex Nominee, we shall have the right to designate a new Onex Nominee to fill such vacancy on the Board
|
e.
|
The Company and Onex acknowledge and agree that (i) Matthew Ross and Anthony Munk, who are currently serving on the Board, shall be the initial Onex Nominees and as of the date of this letter agreement are qualified for all purposes under this letter agreement and (ii) the Board’s obligation to nominate an Onex Nominee pursuant to this paragraph 2 shall be deemed satisfied for any annual or special meeting of the Company’s stockholders, as applicable, at which the then-current term of such Onex Nominee would not otherwise expire and, accordingly, the director position held by such Onex Nominee is not the subject of the business to be conducted at such annual or special meeting.
|
3.
|
Upon executing and delivering a joinder to that certain Confidentiality Letter Agreement, dated as of October 31, 2018 (the “Confidentiality Agreement”), by and among the Company, Onex, Mr. Ross and Mr. Munk, each new Onex Nominee shall be deemed to be an “Onex Director” for all purposes under the Confidentiality Agreement.
|
4.
|
No party may assign (which shall include by operation of law, merger, consolidation or similar transaction) this letter agreement, or any of its rights or obligations hereunder, without the prior written consent of the other party hereto; provided, however, that Onex may assign this letter agreement and any of its rights and obligations hereunder to any Onex Entity that beneficially owns and has a pecuniary interest in shares of Common Stock without the prior written consent of the Company.
|
5.
|
This letter agreement and the Confidentiality Agreement contain the entire agreement of the parties with respect to the subject matter hereof. This letter agreement may be amended only by an agreement in writing executed by the parties hereto. Nothing in this letter agreement shall confer any rights upon any person or individual other
|
Title:
|
Managing Director
|
|
|
|
|
|
JELD-WEN HOLDING, INC.
|
||||
|
|
|||
By:
|
|
|
||
|
|
Name:
|
|
Laura W. Doerre
|
|
|
Title:
|
|
Executive Vice President, General
|
|
|
|
|
Counsel and Chief Compliance Officer
|
Legal Name
|
Jurisdiction of Incorporation or Organization
|
Pelican Insurance, Ltd.
|
Bermuda
|
J&W Risk Services, Inc.
|
Oregon
|
JELD-WEN, Inc.
|
Delaware
|
Harbor Isles, LLC
|
Oregon
|
Milliken Millwork, Inc.
|
Michigan
|
Milliken Enterprises - Michigan LLC
|
Michigan
|
Milliken Enterprises - Ohio LLC
|
Michigan
|
Milliken Enterprises – Pennsylvania LLC
VPI Quality Windows, Inc.
|
Michigan
Washington
|
American Building Supply, Inc.
|
California
|
J B L Hawaii, Limited
|
Hawaii
|
JELD-WEN Door Replacement Systems, Inc.
|
Oregon
|
West One Automotive Group, Inc. (1)
|
Oregon
|
Karona, Inc.
|
Michigan
|
JW International Holdings, Inc.
|
Nevada
|
Builders Paradise – Caymans
|
Grand Cayman
|
Builders Paradise (St. Kitts) Ltd.
|
St. Kitts
|
JELD-WEN of Canada, Ltd.
|
Canada
|
JELD-WEN de Mexico, S.A. de C.V.
|
Mexico
|
JW Real Estate, Inc.
|
Nevada
|
JELD-WEN Chile S.A.
|
Chile
|
JW Global Holdings, Ltd.
|
British Virgin Islands
|
JELD-WEN European Holdings, LLC
|
Delaware
|
JELD-WEN ApS
|
Denmark
|
JELD-WEN Europe Ltd. (f/k/a RJAC, Ltd.)
|
United Kingdom
|
JELD-WEN Danmark A/S
|
Denmark
|
JELD-WEN Deutschland Holding GmbH
|
Germany
|
JELD-WEN Deutschland GmbH & Co. KG
|
Germany
|
BOS GmbH
|
Germany
|
BBE Domoferm GmbH
|
Germany
|
JELD-WEN Magyarország Kft.
|
Hungary
|
JELD-WEN Österreich GmbH
|
Austria
|
JELD-WEN Türen GmbH
|
Austria
|
JELD-WEN Schweiz AG
|
Switzerland
|
ZARGAG Zargen + Türen AG
|
Switzerland
|
JELD-WEN Eesti AS
|
Estonia
|
JELD-WEN Sverige AB
|
Sweden
|
JELD-WEN Norge AS
|
Norway
|
Dooria AS
|
Norway
|
|
|
Legal Name
|
Jurisdiction of Incorporation or Organization
|
|
|
Vännäs Dörr AB
|
Sweden
|
JELD-WEN of Latvia, SIA
|
Latvia
|
JELD-WEN Suomi Oy
|
Finland
|
Mattiovi Oy
|
Finland
|
OOO JELD-WEN Russia LLC
|
Russia
|
JELD-WEN France, S.A.S.
|
France
|
JELD-WEN UK, Ltd.
|
United Kingdom
|
JELD-WEN Hong Kong Limited
|
Hong Kong
|
Domoferm Service, GmbH
|
Austria
|
Domoferm GmbH & Co. KG
|
Austria
|
HSE Spol s.r.o.
|
Czech Republic
|
Domoferm Export, GmbH
|
Austria
|
Domoferm Tschechia s.r.o.
|
Czech Republic
|
Domoferm Polska Sp. z.o.o.
|
Poland
|
Domoferm Hungaria Kft.
|
Hungary
|
Domoferm d.o.o.
|
Croatia
|
Drumetall Sp. z.o.o.
|
Poland
|
OOO Domoferm
|
Russia
|
Staalkozijn Nederland B.V.
|
Netherlands
|
Drumetall GmbH
|
Austria
|
JELD-WEN Australia Pty, Ltd.
|
Australia
|
Corinthian Industries (Holdings) Pty. Ltd.
|
Australia
|
Corinthian Industries (Australia) Pty. Ltd.
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Australia
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Baltic Doors Pty. Ltd.
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Australia
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JELD-WEN New Zealand Ltd.
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New Zealand
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Stegbar Pty. Ltd.
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Australia
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JELD-WEN Management Services Pty. Ltd.
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Australia
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Regency (Showerscreens & Wardrobes) Pty. Ltd.
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Australia
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Airlite Windows Pty. Ltd.
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Australia
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JELD-WEN Glass Australia Pty. Ltd.
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Australia
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Corinthian Industries (Asia) SDN BHD
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Malaysia
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Aneeta Window Systems (Vic) Pty Ltd
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Australia
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Trend Windows & Doors Pty Ltd
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Australia
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Trend Glass Pty Ltd
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Australia
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Fenestra Hardware Specialists Pty Ltd
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Australia
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ArcPac Building Products Limited
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Australia
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Breezway Bidco Pty Ltd
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Australia
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Breezway Australia (Holdings) Pty Ltd
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Australia
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Breezway Australia Pty Ltd
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Australia
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Breezway Malaysia SND BHD
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Malaysia
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Breezway North America Inc.
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California
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Kolder Pty Ltd
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Australia
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Kolder Installations Pty Ltd
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Australia
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Wollongong Glass Pty Ltd
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Australia
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Legal Name
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Jurisdiction of Incorporation or Organization
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A&L Windows Pty Ltd
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Australia
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A&L Windows (QLD) Pty Ltd
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Australia
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A&L Services, Pty Ltd
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Australia
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(1) Owned 50% by JELD-WEN, Inc.
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* Pursuant to Item 601(b)(21)(ii) of Regulation S-K, the names of other subsidiaries of JELD-WEN Holding, Inc. are omitted because, considered in the aggregate, they would not constitute a significant subsidiary as of the end of the Company’s most recently completed fiscal year.
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1.
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I have reviewed this Annual Report on Form 10-K for the fiscal period ended December 31, 2019 of JELD-WEN Holding, Inc.;
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2.
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Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3.
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Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
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4.
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The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
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(a)
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Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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(b)
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Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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(c)
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Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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(d)
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Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
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5.
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The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
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(a)
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All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
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(b)
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Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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1.
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I have reviewed this Annual Report on Form 10-K for the fiscal period ended December 31, 2019 of JELD-WEN Holding, Inc.;
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2.
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Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3.
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Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
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4.
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The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
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(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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(b)
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Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; and
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(c)
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Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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(d)
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Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
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5.
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The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
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(a)
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All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
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(b)
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Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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