Supplemental Guarantor Information (Tables)

12 Months Ended

Sep. 30, 2019

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Condensed Consolidating Balance Sheets

BEACON ROOFING SUPPLY, INC.

Condensed Consolidating Balance Sheets

(Unaudited; In thousands)

	September 30, 2019
	Parent		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations and Other			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	-	$	65,213	$	7,074	$	-		$	72,287
Accounts receivable, net		-		1,067,109		42,165		(1,140	)		1,108,134
Inventories, net		-		988,925		29,258		-			1,018,183
Prepaid expenses and other current assets		15,788		291,736		8,119		-			315,643
Total current assets		15,788		2,412,983		86,616		(1,140	)		2,514,247
Intercompany receivable, net		-		1,561,217		-		(1,561,217	)		-
Investments in consolidated subsidiaries		6,365,732		-		-		(6,365,732	)		-
Deferred income taxes, net		17,123		-		-		(17,123	)		-
Property and equipment, net		20,507		229,267		10,602		-			260,376
Goodwill		-		2,461,212		29,378		-			2,490,590
Intangibles, net		-		1,123,768		1,772		-			1,125,540
Other assets, net		2,059		-		-		-			2,059
Total assets	$	6,421,209	$	7,788,447	$	128,368	$	(7,945,212	)	$	6,392,812
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	51,142	$	745,820	$	27,109	$	(1,140	)	$	822,931
Accrued expenses		80,556		504,150		14,449		-			599,155
Current portions of long-term debt/obligations		9,700		8,989		-		-			18,689
Total current liabilities		141,398		1,258,959		41,558		(1,140	)		1,440,775
Intercompany payable, net		1,523,640		-		37,577		(1,561,217	)		-
Borrowings under revolving lines of credit, net		-		80,961		-		-			80,961
Long-term debt, net		2,494,623		-		-		-			2,494,623
Deferred income taxes, net		-		120,643		393		(17,123	)		103,913
Long-term obligations under equipment financing and other, net		-		4,609		-		-			4,609
Other long-term liabilities		-		6,301		82		-			6,383
Total liabilities		4,159,661		1,471,473		79,610		(1,579,480	)		4,131,264
Convertible preferred stock		399,195		-		-		-			399,195
Total stockholders' equity		1,862,353		6,316,974		48,758		(6,365,732	)		1,862,353
Total liabilities and stockholders' equity	$	6,421,209	$	7,788,447	$	128,368	$	(7,945,212	)	$	6,392,812

BEACON ROOFING SUPPLY, INC.

Condensed Consolidating Balance Sheets

(Unaudited; In thousands)

	September 30, 2018
	Parent		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations and Other			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	-	$	136,499	$	1,959	$	(8,531	)	$	129,927
Accounts receivable, net		-		1,051,410		40,262		(1,139	)		1,090,533
Inventories, net		-		907,605		28,442		-			936,047
Prepaid expenses and other current assets		23,711		214,011		6,638		-			244,360
Total current assets		23,711		2,309,525		77,301		(9,670	)		2,400,867
Intercompany receivable, net		-		1,361,615		-		(1,361,615	)		-
Investments in consolidated subsidiaries		6,109,325		-		-		(6,109,325	)		-
Deferred income taxes, net		22,475		-		-		(22,475	)		-
Property and equipment, net		18,929		250,517		10,961		-			280,407
Goodwill		-		2,461,725		30,054		-			2,491,779
Intangibles, net		-		1,332,104		2,262		-			1,334,366
Other assets, net		1,243		-		-		-			1,243
Total assets	$	6,175,683	$	7,715,486	$	120,578	$	(7,503,085	)	$	6,508,662
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	24,154	$	843,907	$	22,482	$	(9,671	)	$	880,872
Accrued expenses		41,448		564,331		5,760		-			611,539
Current portions of long-term debt/obligations		9,700		9,961		-		-			19,661
Total current liabilities		75,302		1,418,199		28,242		(9,671	)		1,512,072
Intercompany payable, net		1,322,156		-		39,459		(1,361,615	)		-
Borrowings under revolving lines of credit, net		-		89,352		3,090		-			92,442
Long-term debt, net		2,494,725		-		-		-			2,494,725
Deferred income taxes, net		-		128,846		622		(22,474	)		106,994
Long-term obligations under equipment financing and other, net		-		13,639		-		-			13,639
Other long-term liabilities		-		5,207		83		-			5,290
Total liabilities		3,892,183		1,655,243		71,496		(1,393,760	)		4,225,162
Convertible preferred stock		399,195		-		-		-			399,195
Total stockholders' equity		1,884,305		6,060,243		49,082		(6,109,325	)		1,884,305
Total liabilities and stockholders' equity	$	6,175,683	$	7,715,486	$	120,578	$	(7,503,085	)	$	6,508,662

Condensed Consolidating Statements of Operations

BEACON ROOFING SUPPLY, INC.

Condensed Consolidating Statements of Operations

(Unaudited; In thousands, except share and per share amounts)

	Year Ended September 30, 2019
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations and Other			Consolidated
Net sales	$	-		$	6,918,518		$	186,642	$	-		$	7,105,160
Cost of products sold		-			5,220,994			147,611		-			5,368,605
Gross profit		-			1,697,524			39,031		-			1,736,555
Operating expense
Selling, general and administrative		17,627			1,261,370			32,046		-			1,311,043
Depreciation		4,027			64,801			1,867		-			70,695
Amortization		-			206,627			438		-			207,065
Total operating expense		21,654			1,532,798			34,351		-			1,588,803
Intercompany charges (income)		(17,576	)		17,132			444		-			-
Income (loss) from operations		(4,078	)		147,594			4,236		-			147,752
Interest expense, financing costs, and other		140,489			17,327			718		-			158,534
Intercompany interest expense (income)		(39,670	)		38,142			1,528		-			-
Income (loss) before provision for income taxes		(104,897	)		92,125			1,990		-			(10,782	)
Provision for (benefit from) income taxes		(116	)		(632	)		578		-			(170	)
Income (loss) before equity in net income of subsidiaries		(104,781	)		92,757			1,412		-			(10,612	)
Equity in net income of subsidiaries		94,169			-			-		(94,169	)		-
Net income (loss)	$	(10,612	)	$	92,757		$	1,412	$	(94,169	)	$	(10,612	)

BEACON ROOFING SUPPLY, INC.

Condensed Consolidating Statements of Operations

(Unaudited; In thousands, except share and per share amounts)

	Year Ended September 30, 2018
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations and Other			Consolidated
Net sales	$	-		$	6,239,332		$	178,979	$	-		$	6,418,311
Cost of products sold		-			4,685,616			139,374		-			4,824,990
Gross profit		-			1,553,716			39,605		-			1,593,321
Operating expense
Selling, general and administrative		5,909			1,147,390			33,893		-			1,187,192
Depreciation		1,989			56,598			1,731		-			60,318
Amortization		-			140,664			521		-			141,185
Total operating expense		7,898			1,344,652			36,145		-			1,388,695
Intercompany charges (income)		(6,734	)		6,565			169		-			-
Income (loss) from operations		(1,164	)		202,499			3,291		-			204,626
Interest expense, financing costs, and other		124,169			11,648			727		-			136,544
Intercompany interest expense (income)		(24,270	)		22,738			1,532		-			-
Income (loss) before provision for income taxes		(101,063	)		168,113			1,032		-			68,082
Provision for (benefit from) income taxes		11,398			(42,261	)		319		-			(30,544	)
Income (loss) before equity in net income of subsidiaries		(112,461	)		210,374			713		-			98,626
Equity in net income of subsidiaries		211,087			-			-		(211,087	)		-
Net income (loss)	$	98,626		$	210,374		$	713	$	(211,087	)	$	98,626

BEACON ROOFING SUPPLY, INC.

Condensed Consolidating Statements of Operations

(Unaudited; In thousands, except share and per share amounts)

	Year Ended September 30, 2017
	Parent			Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations and Other			Consolidated
Net sales	$	-		$	4,198,935	$	177,735	$	-		$	4,376,670
Cost of products sold		-			3,162,896		137,835		-			3,300,731
Gross profit		-			1,036,039		39,900		-			1,075,939
Operating expense
Selling, general and administrative		26,962			685,690		30,724		-			743,376
Depreciation		1,534			30,758		1,710		-			34,002
Amortization		-			81,880		585		-			82,465
Total operating expense		28,496			798,328		33,019		-			859,843
Intercompany charges (income)		(4,664	)		4,342		322		-			-
Income (loss) from operations		(23,832	)		233,369		6,559		-			216,096
Interest expense, financing costs, and other		38,660			14,033		58		-			52,751
Intercompany interest expense (income)		(24,458	)		22,927		1,531		-			-
Income (loss) before provision for income taxes		(38,034	)		196,409		4,970		-			163,345
Provision for (benefit from) income taxes		(3,284	)		64,399		1,366		-			62,481
Income (loss) before equity in net income of subsidiaries		(34,750	)		132,010		3,604		-			100,864
Equity in net income of subsidiaries		135,614			-		-		(135,614	)		-
Net income (loss)	$	100,864		$	132,010	$	3,604	$	(135,614	)	$	100,864

Condensed Consolidating Statements of Comprehensive Income

BEACON ROOFING SUPPLY, INC.

Condensed Consolidating Statements of Comprehensive Income

(Unaudited; In thousands)

	Year Ended September 30, 2019
	Parent			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations and Other			Consolidated
Net income (loss)	$	(10,612	)	$	92,757	$	1,412		$	(94,169	)	$	(10,612	)
Other comprehensive income (loss):
Foreign currency translation adjustment		(1,734	)		-		(1,734	)		1,734			(1,734	)
Unrealized gain (loss) due to change in fair value of derivatives, net of tax		(1,612	)		-		(1,612	)		1,612			(1,612	)
Total other comprehensive income (loss)		(3,346	)		-		(3,346	)		3,346			(3,346	)
Comprehensive income (loss)	$	(13,958	)	$	92,757	$	(1,934	)	$	(90,823	)	$	(13,958	)

	Year Ended September 30, 2018
	Parent			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations and Other			Consolidated
Net income (loss)	$	98,626		$	210,374	$	713		$	(211,087	)	$	98,626
Other comprehensive income (loss):
Foreign currency translation adjustment		(2,687	)		-		(2,687	)		2,687			(2,687	)
Total other comprehensive income (loss)		(2,687	)		-		(2,687	)		2,687			(2,687	)
Comprehensive income (loss)	$	95,939		$	210,374	$	(1,974	)	$	(208,400	)	$	95,939

	Year Ended September 30, 2017
	Parent		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations and Other			Consolidated
Net income (loss)	$	100,864	$	132,010	$	3,604	$	(135,614	)	$	100,864
Other comprehensive income (loss):
Foreign currency translation adjustment		3,706		-		3,706		(3,706	)		3,706
Total other comprehensive income (loss)		3,706		-		3,706		(3,706	)		3,706
Comprehensive income (loss)	$	104,570	$	132,010	$	7,310	$	(139,320	)	$	104,570

Condensed Consolidating Statements of Cash Flows

BEACON ROOFING SUPPLY, INC.

Condensed Consolidating Statements of Cash Flows

(Unaudited; In thousands)

	Year Ended September 30, 2019
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations and Other			Consolidated
Net cash provided by (used in) operating activities	$	6,250		$	188,268		$	11,339		$	6,796		$	212,653
Investing Activities
Purchases of property and equipment		(7,156	)		(48,311	)		(1,564	)		-			(57,031	)
Acquisition of businesses, net		-			(163,973	)		-			-			(163,973	)
Proceeds from the sale of assets		-			9,256			13			-			9,269
Intercompany activity		35,777			-			-			(35,777	)		-
Net cash provided by (used in) investing activities		28,621			(203,028	)		(1,551	)		(35,777	)		(211,735	)
Financing Activities
Borrowings under revolving lines of credit		-			2,049,500			50,585			-			2,100,085
Repayments under revolving lines of credit		-			(2,060,396	)		(53,586	)		-			(2,113,982	)
Repayments under term loan		(9,700	)		-			-			-			(9,700	)
Payment of debt issuance costs		(817	)		-			-			-			(817	)
Repayments under equipment financing facilities and other		-			(10,001	)		-			-			(10,001	)
Payment of dividends on preferred stock		(24,000	)		-			-			-			(24,000	)
Proceeds from issuance of common stock related to equity awards		3,314			-			-			-			3,314
Taxes paid related to net share settlement of equity awards		(3,668	)		-			-			-			(3,668	)
Intercompany activity		-			(35,629	)		(1,826	)		37,455			-
Net cash provided by (used in) financing activities		(34,871	)		(56,526	)		(4,827	)		37,455			(58,769	)
Effect of exchange rate changes on cash and cash equivalents		-			-			154			57			211
Net increase (decrease) in cash and cash equivalents		-			(71,286	)		5,115			8,531			(57,640	)
Cash and cash equivalents, beginning of period		-			136,499			1,959			(8,531	)		129,927
Cash and cash equivalents, end of period	$	-		$	65,213		$	7,074		$	-		$	72,287

BEACON ROOFING SUPPLY, INC.

Condensed Consolidating Statements of Cash Flows

(Unaudited; In thousands)

	Year Ended September 30, 2018
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations and Other			Consolidated
Net cash provided by (used in) operating activities	$	(100,302	)	$	638,451		$	(680	)	$	1,912		$	539,381
Investing Activities
Purchases of property and equipment		(14,354	)		(29,132	)		(2,524	)		-			(46,010	)
Acquisition of businesses, net		(2,740,480	)		-			-			-			(2,740,480	)
Proceeds from the sale of assets		-			2,121			28			-			2,149
Intercompany activity		699,970			-			-			(699,970	)		-
Net cash provided by (used in) investing activities		(2,054,864	)		(27,011	)		(2,496	)		(699,970	)		(2,784,341	)
Financing Activities
Borrowings under revolving lines of credit		-			2,766,447			41,294			-			2,807,741
Repayments under revolving lines of credit		-			(2,666,447	)		(41,294	)		-			(2,707,741	)
Borrowings under term loan		970,000			-			-			-			970,000
Repayments under term loan		(445,850	)		-			-			-			(445,850	)
Borrowings under senior notes		1,300,000			-			-			-			1,300,000
Payment of debt issuance costs		(58,266	)		(7,522	)		-			-			(65,788	)
Repayments under equipment financing facilities and other		-			(11,593	)		-			-			(11,593	)
Proceeds from issuance of convertible preferred stock		400,000			-			-			-			400,000
Payment of stock issuance costs		(1,279	)		-			-			-			(1,279	)
Payment of dividends on preferred stock		(12,978	)		-			-			-			(12,978	)
Proceeds from issuance of common stock related to equity awards		7,514			-			-			-			7,514
Taxes paid related to net share settlement of equity awards		(3,975	)		-			-			-			(3,975	)
Intercompany activity		-			(705,625	)		2,967			702,658			-
Net cash provided by (used in) financing activities		2,155,166			(624,740	)		2,967			702,658			2,236,051
Effect of exchange rate changes on cash and cash equivalents		-			-			586			-			586
Net increase (decrease) in cash and cash equivalents		-			(13,300	)		377			4,600			(8,323	)
Cash and cash equivalents, beginning of period		-			149,799			1,582			(13,131	)		138,250
Cash and cash equivalents, end of period	$	-		$	136,499		$	1,959		$	(8,531	)	$	129,927

BEACON ROOFING SUPPLY, INC.

Condensed Consolidating Statements of Cash Flows

(Unaudited; In thousands)

	Year Ended September 30, 2017
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations and Other			Consolidated
Net cash provided by (used in) operating activities	$	(2,466	)	$	313,396		$	4,888		$	(618	)	$	315,200
Investing Activities
Purchases of property and equipment		(3,517	)		(34,584	)		(1,727	)		-			(39,828	)
Acquisition of businesses, net		(129,390	)		-			-			-			(129,390	)
Proceeds from the sale of assets		-			2,150			83			-			2,233
Intercompany activity		(203,163	)		-			-			203,163			-
Net cash provided by (used in) investing activities		(336,070	)		(32,434	)		(1,644	)		203,163			(166,985	)
Financing Activities
Borrowings under revolving lines of credit		-			2,445,084			19,044			-			2,464,128
Repayments under revolving lines of credit		-			(2,812,663	)		(20,567	)		-			(2,833,230	)
Repayments under term loan		(4,500	)		-			-			-			(4,500	)
Payment of debt issuance costs		(1,669	)		-			-			-			(1,669	)
Repayments under equipment financing facilities and other		-			(10,049	)		15			-			(10,034	)
Proceeds from secondary offering of common stock		345,503			-			-			-			345,503
Payment of stock issuance costs		(14,684	)		-			-			-			(14,684	)
Proceeds from issuance of common stock related to equity awards		11,341			-			-			-			11,341
Taxes paid related to net share settlement of equity awards		(392	)		-			-			-			(392	)
Excess tax benefit from stock-based compensation		2,937			-			-			-			2,937
Intercompany activity		-			209,018			(2,279	)		(206,739	)		-
Net cash provided by (used in) financing activities		338,536			(168,610	)		(3,787	)		(206,739	)		(40,600	)
Effect of exchange rate changes on cash and cash equivalents		-			-			(751	)		-			(751	)
Net increase (decrease) in cash and cash equivalents		-			112,352			(1,294	)		(4,194	)		106,864
Cash and cash equivalents, beginning of period		-			37,447			2,876			(8,937	)		31,386
Cash and cash equivalents, end of period	$	-		$	149,799		$	1,582		$	(13,131	)	$	138,250