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SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF JELD-WEN HOLDING, INC.
 12 Months Ended
Dec. 31, 2019
Condensed Financial Information Disclosure [Abstract]  
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF JELD-WEN HOLDING, INC.
CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

 
 
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



SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF JELD-WEN HOLDING, INC.
Parent Company Information
CONDENSED BALANCE SHEETS

(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


SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF JELD-WEN HOLDING, INC.
Parent Company Information
CONDENSED STATEMENTS OF CASH FLOWS

 
 
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


Description of Company and Summary of Significant Accounting Policies

Accounting policies adopted in the preparation of this condensed parent company only financial information are the same as those adopted in the consolidated financial statements and described in Note 1 - Description of Company and Summary of Significant Accounting Policies, of the consolidated financial statements included in this Form 10-K.
Nature of Business – JELD-WEN Holding, Inc., (the “Parent Company”) (a Delaware corporation) was formed by Onex Partners III LP to effect the acquisition of JELD-WEN, Inc. and had no activities prior to the acquisition of JELD-WEN, Inc. on October 3, 2011. The Parent Company is a holding company with no material operations of its own that conducts substantially all of its activities through its direct subsidiary, JELD-WEN Inc. and its subsidiaries.
The accompanying condensed parent-only financial information includes the accounts of the Parent Company and, on an equity basis, its direct and indirect subsidiaries and affiliates. Accordingly, these condensed financial statements have been presented on a “parent-only” basis. Under a parent-only presentation, the Parent Company’s investments in subsidiaries are presented under the equity method of accounting. These parent-only financial statements should be read in conjunction with the JELD-WEN Holding, Inc. and subsidiaries consolidated financial statements included elsewhere herein.
The condensed parent-only financial statements have been prepared in accordance with Rule 12-04, Schedule I of Regulation S-X as the restricted net assets of the subsidiaries of the Company exceed 25% of the consolidated net assets of the Company. The ability of the Company’s operating subsidiaries to pay dividends may be restricted due to the terms of the subsidiaries’ financing arrangements (see Note 15 - Long-Term Debt to the consolidated financial statements).
Property and Equipment – Property and equipment is recorded at cost. The cost of major additions and betterments are capitalized and depreciated using the straight-line method over their estimated useful lives while replacements, maintenance and repairs that do not improve or extend the useful lives of the related assets or adapt the property to a new or different use are expensed as incurred.
Depreciation is generally provided over the following estimated useful service lives:
Buildings
15 - 45 years

Property and Equipment, Net

(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


Depreciation expense was $0.1 million in the years ended December 31, 2019, $0.2 million in the year ended 2018, and $0.1 million in the year ended 2017.
Long-Term Debt

(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


Installment Notes for Stock - We entered into installment notes for stock representing amounts due to former or retired employees for repurchases of our stock that are payable over 10 years depending on the amount with payments through 2020. As of December 31, 2019, we had $0.2 million outstanding under these notes.
Stock Compensation

For discussion of stock compensation expense of the Parent Company and its subsidiaries, see Note 22 - Stock Compensation, to the consolidated financial statements.Commitments and Contingencies

For discussion of the commitments and contingencies of the subsidiaries of the Parent Company see Note 28 - Commitments and Contingencies, to the consolidated financial statements.Supplemental Cash Flow

(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