10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

____________________________

FORM 10-Q

____________________________

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended April 1, 2023

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____ to _____

Commission File Number: 001-38000

____________________________

JELD-WEN Holding, Inc.

(Exact name of registrant as specified in its charter)

____________________________

Delaware	93-1273278
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

2645 Silver Crescent Drive

Charlotte, North Carolina 28273

(Address of principal executive offices, zip code)

(704) 378-5700

(Registrant’s telephone number, including area code)

____________________________

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock (par value $0.01 per share)	JELD	New York Stock Exchange

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	o	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The registrant had 84,971,801 shares of Common Stock, par value $0.01 per share, outstanding as of May 4, 2023.

JELD-WEN HOLDING, Inc.

- Table of Contents –

		Page No.
Part I - Financial Information
Item 1.	Unaudited Financial Statements
	Consolidated Statements of Operations	8
	Consolidated Statements of Comprehensive Income (Loss)	9
	Consolidated Balance Sheets	10
	Consolidated Statements of Equity	11
	Consolidated Statements of Cash Flows	12
	Notes to Unaudited Consolidated Financial Statements	13
	Note 1. Description of Company and Summary of Significant Accounting Policies	13
	Note 2. Accounts Receivable	14
	Note 3. Inventories	14
	Note 4. Property and Equipment, Net	15
	Note 5. Goodwill	15
	Note 6. Intangible Assets, Net	15
	Note 7. Accrued Expenses and Other Current Liabilities	16
	Note 8. Warranty Liability	16
	Note 9. Long-Term Debt	17
	Note 10. Income Taxes	19
	Note 11. Segment Information	19
	Note 12. Capital Stock	21
	Note 13. Earnings Per Share	22
	Note 14. Stock Compensation	22
	Note 15. Restructuring and Asset Related Charges	22
	Note 16. Held for Sale	24
	Note 17. Other Income, Net	24
	Note 18 Derivative Financial Instruments	24
	Note 19. Fair Value of Financial Instruments	25
	Note 20. Commitments and Contingencies	26
	Note 21. Supplemental Cash Flow Information	31
	Note 22. Subsequent Events	32
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	33
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	40
Item 4.	Controls and Procedures	40
Part II - Other Information
Item 1.	Legal Proceedings	41
Item 1A.	Risk Factors	41
Item 5.	Other Information	41
Item 6.	Exhibits	41
	Signature	42

2

Glossary of Terms

When the following terms and abbreviations appear in the text of this report, they have the meanings indicated below:

Form 10-K	Annual Report on Form 10-K for the fiscal year ended December 31, 2022
ABL Facility	Our $500 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
Adjusted EBITDA	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: (income) loss from discontinued operations, net of tax; income tax expense (benefit); depreciation and amortization; interest expense, net; and certain special items consisting of non-recurring legal and professional expenses and settlements; restructuring and asset related charges; facility closure, consolidation, and other related costs and adjustments; M&A related costs; share-based compensation expense; non-cash foreign exchange transaction/translation (income) loss; and other special items.
ASC	Accounting Standards Codification
ASU	Accounting Standards Update
AUD	Australian Dollar
Australia Senior Secured Credit Facility	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
BBSY	Bank Bill Swap Bid Rate
CAP	Cleanup Action Plan
CARES Act	Coronavirus Aid, Relief, and Economic Security Act enacted on March 27, 2020
CEO	Chief Executive Officer
CFO	Chief Financial Officer
Charter	Amended and Restated Certificate of Incorporation of JELD-WEN Holding, Inc.
CMI	JWI d/b/a CraftMaster Manufacturing, Inc.
COA	Consent Order and Agreement
CODM	Chief Operating Decision Maker, which is our Chief Executive Officer
Common Stock	The 900,000,000 shares of common stock, par value $0.01 per share, authorized under our Charter
Core Revenues	Revenue excluding the impact of foreign exchange, divestitures, and acquisitions completed in the last twelve months
Corporate Credit Facilities	Collectively, our ABL Facility and our Term Loan Facility
COVID-19	A novel strain of the 2019-nCov coronavirus
Credit Facilities	Collectively, our Corporate Credit Facilities and our Australia Senior Secured Credit Facility as well as other acquired term loans and revolving credit facilities
DKK	Danish Krone
ERP	Enterprise Resource Planning
Exchange Act	Securities Exchange Act of 1934, as amended
FASB	Financial Accounting Standards Board
GAAP	Generally Accepted Accounting Principles in the United States
GHGs	Greenhouse Gases
GILTI	Global Intangible Low-Taxed Income
JELD-WEN	JELD-WEN Holding, Inc., together with its consolidated subsidiaries where the context requires
JWA	JELD-WEN of Australia Pty. Ltd.
JWI	JELD-WEN, Inc., a Delaware corporation
LIBOR	London Interbank Offered Rate
M&A	Mergers and acquisitions
MD&A	Management’s Discussion and Analysis of Financial Condition and Results of Operations

3

Onex	Onex Partners III LP and certain affiliates
PaDEP	Pennsylvania Department of Environmental Protection
PLP	Potential Liability Party
Preferred Stock	90,000,000 shares of Preferred Stock, par value $0.01 per share, authorized under our Charter
PSU	Performance Stock Unit
R&R	Repair and Remodel
RSU	Restricted Stock Unit
SEC	U.S. Securities and Exchange Commission
Securities Act	Securities Act of 1933, as amended
Senior Notes	$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
Senior Secured Notes	$250.0 million of senior secured notes issued in May 2020 in a private placement bearing interest at 6.25% and maturing in May 2025
SOFR	Secured Overnight Financing Rate
SG&A	Selling, general, and administrative expenses
Tax Act	Tax Cuts and Jobs Act
Term Loan Facility	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
U.S.	United States of America
VPI	JWI d/b/a VPI Quality Windows, Inc.
Working Capital	Accounts receivable plus inventory less accounts payable

4

CERTAIN TRADEMARKS, TRADE NAMES, AND SERVICE MARKS

    This report includes trademarks, trade names, and service marks owned by us. Our U.S. window and door trademarks include JELD-WEN®, AuraLast®, MiraTEC®, Extira®, LaCANTINA®, MMI Door®, KaronaTM, ImpactGard®, JW®, Aurora®, IWP®, True BLU®, ABSTM, Siteline®, National Door®, Low-Friction Glider®, Hydrolock®, VPITM, AURALINE®, FINISHIELD®, MILLENIUM®, TRUFIT®, EPICVUE®, and EVELIN®. Our trademarks are either registered or have been used as common law trademarks by us. The trademarks we use outside the U.S. include the Stegbar®, Regency®, William Russell Doors®, Airlite®, Trend®, The Perfect FitTM, Aneeta®, Breezway®, KolderTM , Corinthian® and A&L Windows ® marks in Australasia, and Swedoor®, Dooria®, DANA®, MattioviTM, Zargag® , Alupan®, and Domoferm® marks in Europe. ENERGY STAR® is a registered trademark of the U.S. Environmental Protection Agency. This report contains additional trademarks, trade names, and service marks of others, which are, to our knowledge, the property of their respective owners. Solely for convenience, trademarks, trade names, and service marks referred to in this report appear without the ®, ™ or SM symbols, but such references are not intended to indicate, in any way, that we will not assert, to the fullest extent under applicable law, our rights or the right of the applicable licensor to these trademarks, trade names, and service marks. We do not intend our use of other parties’ trademarks, trade names, or service marks to imply, and such use or display should not be construed to imply, a relationship with, or endorsement or sponsorship of us by, these other parties.

5

PART I - FINANCIAL INFORMATION

FORWARD-LOOKING STATEMENTS

    In addition to historical information, this Form 10-Q contains “forward-looking statements” within the meaning of Section 27A of the federal Securities Act and Section 21E of the Exchange Act, which are subject to the “safe harbor” created by those sections. All statements, other than statements of historical facts, included in this Form 10-Q are forward-looking statements. Forward-looking statements are generally identified by our use of forward-looking terminology, including the terms “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “potential,” “predict,” “seek,” or “should,” and, in each case, their negative or other various or comparable terminology. In particular, statements about the markets in which we operate, including growth of our various markets, and our expectations, beliefs, plans, strategies, objectives, prospects, assumptions, or future events or performance under Item 7 - Management’s Discussion and Analysis of Financial Condition and Results of Operations and Item 1- Business are forward-looking statements. In addition, statements regarding the potential outcome and impact of pending litigation are forward-looking statements.

    We have based these forward-looking statements on our current expectations, assumptions, estimates and projections. While we believe these expectations, assumptions, estimates, and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond our control. These and other important factors, including those discussed under the headings Item 1A- Risk Factors in our Form 10-K and Item 1A – Risk Factors and Item 2- Management’s Discussion and Analysis of Financial Condition and Results of Operations in this Form 10-Q may cause our actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements. Some of the factors that could cause actual results to differ materially from those expressed or implied by the forward-looking statements include:

•negative trends in overall business, financial market and economic conditions, and/or activity levels in our end markets;

•our highly competitive business environment;

•failure to timely identify or effectively respond to consumer needs, expectations, or trends;

•failure to maintain the performance, reliability, quality, and service standards required by our customers;

•failure to successfully implement our strategic initiatives, including our productivity and global footprint rationalization initiatives and strategic business review;

•the ongoing conflict between Russia and Ukraine;

•acquisitions, divestitures, or investments in other businesses that may not be successful;

•adverse outcome of pending or future litigation;

•declines in our relationships with and/or consolidation of our key customers;

•increases in interest rates and reduced availability of financing for the purchase of new homes and home construction and improvements;

•fluctuations in the prices of raw materials used to manufacture our products;

•delays or interruptions in the delivery of raw materials or finished goods;

•failure to retain and recruit executives, managers, and employees;

•seasonal business with varying revenue and profit;

•changes in weather patterns and related extreme weather conditions;

•political, regulatory, economic, and other risks, including the impact of political conflict on the global economy and the impact pandemics, including the COVID-19 pandemic, that arise from operating a multinational business;

•exchange rate fluctuations;

•disruptions in our operations due to natural disasters or acts of war;

•manufacturing realignments and cost savings programs resulting in a decrease in short-term earnings;

•security breaches and other cybersecurity incidents;

•increases in labor costs, potential labor disputes, and work stoppages at our facilities;  

•changes in building codes that could increase the cost of our products or lower the demand for our windows and doors;

6

•compliance costs and liabilities under environmental, health, and safety laws and regulations;

•compliance costs with respect to legislative and regulatory proposals to restrict emission of GHGs;

•lack of transparency, threat of fraud, public sector corruption, and other forms of criminal activity involving government officials;

•product liability claims, product recalls, or warranty claims;

•inability to protect our intellectual property;

•pension plan obligations;

•availability and cost of credit;

•our current level of indebtedness and the effect of restrictive covenants under our existing or future indebtedness including our Credit Facilities, Senior Secured Notes, and Senior Notes; and

•other risks and uncertainties, including those listed under Item 1A- Risk Factors in our Form 10-K and Item 1A- Risk Factors in this Form 10-Q.

    Given these risks and uncertainties, you are cautioned not to place undue reliance on such forward-looking statements. Any forward-looking statement in this Form 10-Q speaks only as of the date of this Form 10-Q. We do not undertake any obligation to update any of the forward-looking statements, except as required by law. We do not undertake any obligation to update or revise, or to publicly announce any update or revision to, any of the forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

The forward-looking statements contained in this Form 10-Q are not guarantees of future performance and our actual results of operations, financial condition, and liquidity, and the development of the industry in which we operate, may differ materially from the forward-looking statements contained herein. In addition, even if our results of operations, financial condition, and liquidity, and events in the industry in which we operate, are consistent with the forward-looking statements contained in this Form 10-Q, they may not be predictive of results or developments in future periods.

Unless the context requires otherwise, references in this Form 10-Q to “we,” “us,” “our,” “the Company,” or “JELD-WEN” mean JELD-WEN Holding, Inc., together with our consolidated subsidiaries where the context requires, including our wholly owned subsidiary JWI.

7

Item 1 - Unaudited Financial Statements

JELD-WEN HOLDING, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

	Three Months Ended
(amounts in thousands, except share and per share data)	April 1, 2023		March 26, 2022
Net revenues	$	1,222,617	$	1,171,022
Cost of sales	990,549		967,724
Gross margin	232,068		203,298
Selling, general and administrative	185,507		192,996
Restructuring and asset related charges (Note 15)	9,266		1
Operating income	37,295		10,301
Interest expense, net	21,221		18,354
Other income, net (Note 17)	(5,272)		(7,337)
Income (loss) before taxes	21,346		(716)
Income tax (benefit) (Note 10)	6,212		(188)
Net income (loss)	$	15,134	$	(528)
Weighted average common shares outstanding (Note 13):
Basic	84,598,945		89,802,974
Diluted	85,149,088		89,802,974
Net income (loss) per share
Basic	$	0.18	$	(0.01)
Diluted	$	0.18	$	(0.01)

The accompanying notes are an integral part of these unaudited Consolidated Financial Statements.

8

JELD-WEN HOLDING, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(unaudited)

	Three Months Ended
(amounts in thousands)	April 1, 2023		March 26, 2022
Net income (loss)	$	15,134	$	(528)
Other comprehensive income, net of tax:
Foreign currency translation adjustments, net of tax expense (benefit) of $580, and $(10), respectively	8,173		(4,033)
Interest rate hedge adjustments, net of tax (benefit) expense of $(1,049) and $2,304, respectively	(3,085)		6,786
Defined benefit pension plans, net of tax expense of $23 and $150, respectively	62		401
Total other comprehensive income, net of tax	5,150		3,154
Comprehensive income	$	20,284	$	2,626

The accompanying notes are an integral part of these unaudited Consolidated Financial Statements.

9

JELD-WEN HOLDING, INC.

CONSOLIDATED BALANCE SHEETS

(unaudited)

(amounts in thousands, except share and per share data)	April 1, 2023		December 31, 2022
ASSETS
Current assets
Cash and cash equivalents	$	202,552	$	219,405
Restricted cash	1,439		1,463
Accounts receivable, net (Note 2)	702,406		603,748
Inventories (Note 3)	637,803		666,455
Other current assets	80,313		78,787
Assets held for sale (Note 16)	128,534		125,748
Total current assets	1,753,047		1,695,606
Property and equipment, net (Note 4)	758,142		762,486
Deferred tax assets	200,830		195,180
Goodwill (Note 5)	463,603		460,505
Intangible assets, net (Note 6)	186,731		192,105
Operating lease assets, net	166,887		167,880
Other assets	31,282		27,599
Total assets	$	3,560,522	$	3,501,361
LIABILITIES AND EQUITY
Current liabilities
Accounts payable	$	348,410	$	320,682
Accrued payroll and benefits	131,846		133,637
Accrued expenses and other current liabilities (Note 7)	294,515		291,876
Current maturities of long-term debt (Note 9)	29,109		34,391
Liabilities held for sale (Note 16)	6,687		6,040
Total current liabilities	810,567		786,626
Long-term debt (Note 9)	1,721,241		1,713,238
Unfunded pension liability	38,315		35,505
Operating lease liability	133,046		135,822
Deferred credits and other liabilities	100,898		97,898
Deferred tax liabilities	8,696		8,724
Total liabilities	2,812,763		2,777,813
Commitments and contingencies (Note 20)
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, 84,916,876 and 84,347,712 shares issued and outstanding as of April 1, 2023 and December 31, 2022, respectively.	849		843
Additional paid-in capital	738,774		734,853
Retained earnings	145,620		130,486
Accumulated other comprehensive loss	(137,484)		(142,634)
Total shareholders’ equity	747,759		723,548
Total liabilities and shareholders’ equity	$	3,560,522	$	3,501,361

The accompanying notes are an integral part of these unaudited Consolidated Financial Statements.

10

JELD-WEN HOLDING, INC.

CONSOLIDATED STATEMENTS OF EQUITY

(unaudited)

	Three Months Ended
	April 1, 2023			March 26, 2022
(amounts in thousands, except share and per share amounts)	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	84,347,712	$	843	90,193,550	$	902
Shares issued for exercise/vesting of share-based compensation awards	604,028	7		824,074	8
Shares repurchased	—	—		(1,777,266)	(18)
Shares surrendered for tax obligations for employee share-based transactions	(34,864)	(1)		(103,904)	(1)
Balance at period end	84,916,876	$	849	89,136,454	$	891
Additional paid-in capital
Balance at beginning of period		$	735,526		$	720,124
Shares issued for exercise/vesting of share-based compensation awards		—			979
Shares surrendered for tax obligations for employee share-based transactions		(462)			(2,378)
Amortization of share-based compensation		4,383			9,664
Balance at period end		739,447			728,389
Employee stock notes
Balance at beginning of period		(673)			(673)
Net issuances, payments and accrued interest on notes		—			—
Balance at period end		(673)			(673)
Balance at period end		$	738,774		$	727,716
Retained earnings
Balance at beginning of period		$	130,486		$	215,611
Shares repurchased		—			(41,323)
Net income (loss)		15,134			(528)
Balance at period end		$	145,620		$	173,760
Accumulated other comprehensive income (loss)
Balance at beginning of period		$	(142,634)		$	(93,746)
Foreign currency adjustments		8,173			(4,033)
Unrealized (loss) gain on interest rate hedges		(3,085)			6,786
Net actuarial pension gain		62			401
Balance at period end		$	(137,484)		$	(90,592)
Total shareholders’ equity at period end		$	747,759		$	811,775

The accompanying notes are an integral part of these unaudited Consolidated Financial Statements

11

JELD-WEN HOLDING, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

	Three Months Ended
(amounts in thousands)	April 1, 2023		March 26, 2022
OPERATING ACTIVITIES
Net income (loss)	$	15,134	$	(528)
Adjustments to reconcile net income (loss) to cash used in operating activities:
Depreciation and amortization	32,790		32,565
Deferred income taxes	(4,268)		(2,449)
Net (gain) loss on disposition of assets	(90)		134
Adjustment to carrying value of assets	2,171		—
Amortization of deferred financing costs	786		726
Stock-based compensation	4,383		9,664
Amortization of U.S. pension expense	125		350
Recovery of cost from interest received on impaired notes	(1,394)		(7,027)
Other items, net	(4,345)		2,211
Net change in operating assets and liabilities, net of effect of acquisitions:
Accounts receivable	(100,229)		(157,703)
Inventories	31,779		(61,285)
Other assets	(1,775)		(34,669)
Accounts payable and accrued expenses	27,572		45,531
Change in short term and long-term tax liabilities	(3,295)		(14,387)
Net cash used in operating activities	(656)		(186,867)
INVESTING ACTIVITIES
Purchases of property and equipment	(21,432)		(15,382)
Proceeds from sale of property and equipment	398		39
Purchase of intangible assets	(2,179)		(998)
Recovery of cost from interest received on impaired notes	1,394		7,027
Cash received for notes receivable	5		48
Cash received from insurance proceeds	3,165		—
Change in securities for deferred compensation plan	(383)		—
Net cash used in investing activities	(19,032)		(9,266)
FINANCING ACTIVITIES
Change in long-term debt	341		110,623
Common stock issued for exercise of options	7		987
Common stock repurchased	—		(40,216)
Payments to tax authorities for employee share-based compensation	(447)		(111)
Net cash (used in) provided by financing activities	(99)		71,283
Effect of foreign currency exchange rates on cash	2,910		(4,940)
Net decrease in cash and cash equivalents	(16,877)		(129,790)
Cash, cash equivalents and restricted cash, beginning	220,868		396,890
Cash, cash equivalents and restricted cash, ending	$	203,991	$	267,100
For further information see Note 21. - Supplemental Cash Flow.

The accompanying notes are an integral part of these unaudited Consolidated Financial Statements.

12

JELD-WEN HOLDING, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Note 1. Description of Company and Summary of Significant Accounting Policies

Nature of Business – JELD-WEN Holding, Inc., along with its subsidiaries, is a vertically integrated global manufacturer and distributor of windows, doors, and other building products that derives substantially all its revenues from the sale of its door and window products. Unless otherwise specified or the context otherwise requires, all references in these notes to “JELD-WEN,” “we,” “us,” “our,” or the “Company” are to JELD-WEN Holding, Inc. and its subsidiaries.

We have facilities located in the U.S., Canada, Europe, Australia, Asia, and Mexico. Our products are marketed primarily under the JELD-WEN brand name in the U.S. and Canada and under JELD-WEN and a variety of acquired brand names in Europe, Australia, and Asia.

Our revenues are affected by the level of new housing starts and remodeling activity in each of our markets. Our sales typically follow seasonal new construction and repair and remodeling industry patterns. The peak season for home construction and remodeling in many of our markets generally corresponds with the second and third calendar quarters, and therefore, sales volume is typically higher during those quarters. Our first and fourth quarter sales volumes are generally lower due to reduced repair and remodeling activity and reduced activity in the building and construction industry as a result of colder and more inclement weather in certain areas of our geographic end markets.

Basis of Presentation – The accompanying unaudited consolidated financial statements as of April 1, 2023 and for the three months ended April 1, 2023 and March 26, 2022, respectively, have been prepared in accordance with GAAP for interim financial information and pursuant to the rules and regulations of the SEC. In the opinion of management, the unaudited consolidated financial statements have been prepared on the same basis as the audited financial statements and include all adjustments, consisting only of normal recurring adjustments, necessary for the fair statement of the Company’s financial position for the periods presented. The results for the three months ended April 1, 2023 are not necessarily indicative of the results to be expected for the year ending December 31, 2023, or any other period. The accompanying consolidated balance sheet as of December 31, 2022 was derived from audited financial statements included in our Annual Report on Form 10-K. The accompanying consolidated financial statements do not include all of the information and footnotes required by GAAP for annual financial statements. Accordingly, they should be read in conjunction with the audited financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2022.

All U.S. dollar and other currency amounts, except per share amounts, are presented in thousands unless otherwise noted.

Fiscal Year – We operate on a fiscal calendar year, and each interim quarter is comprised of two 4-week periods and one 5-week period, with each week ending on a Saturday. Our fiscal year always begins on January 1 and ends on December 31. As a result, our first and fourth quarters may have more or fewer days included than a traditional 91-day fiscal quarter.

Use of Estimates – The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates, assumptions, and allocations that affect amounts reported in the consolidated financial statements and related notes. Significant items that are subject to such estimates and assumptions include, but are not limited to, long-lived assets including goodwill and other intangible assets, employee benefit obligations, income tax uncertainties, contingent assets and liabilities, provisions for bad debt, inventory, warranty liabilities, legal claims, valuation of derivatives, environmental remediation, and claims relating to self-insurance. Actual results could differ due to the uncertainty inherent in the nature of these estimates.

COVID-19 – The CARES Act in the U.S. and similar legislation in other jurisdictions includes measures that assisted companies in responding to the COVID-19 pandemic. These measures consisted primarily of cash assistance to support employment levels and deferment of remittance of certain non-income tax expense payments. The most significant impact was from the CARES Act in the U.S., which included a provision that allowed employers to defer the remittance of the employer portion of the social security tax relating to 2020. The deferred employment payment must be paid over two years. Original payment due dates were in 2021 and 2022, however updated guidance provided by the Internal Revenue Service in December 2021 allowed for these payments to be made during 2022 and 2023. The Company deferred $20.9 million of the employer portion of social security tax in 2020, of which $9.9 million was paid in the first quarter of 2022 and the remaining $11.0 million was paid in the fourth quarter of 2022.

Recent Accounting Standards – In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions affected by the discontinuation of LIBOR or by another reference rate expected to be discontinued. In January 2021, the FASB issued

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ASU No. 2021-01, Reference Rate Reform (Topic 848): Scope, to clarify the scope of ASU No. 2020-04. In December 2022, the FASB issued ASU No. 2022-06, Deferral of the Sunset Date of Topic 848, which extended the relief provisions under Topic 848 through December 31, 2024. In May 2020, we elected the expedient within ASC 848 which allows us to assume that our hedged interest payments are probable of occurring regardless of any expected modifications in their terms related to reference rate reform. In addition, ASC 848 allows for the option to change the method of assessing effectiveness upon a change in critical terms of the derivative or the hedged transactions and upon the end of relief under ASC 848. At this time, we have elected to continue the method of assessing effectiveness as documented in the original hedge documentation and apply the practical expedients related to probability to assume that the reference rate on the hypothetical derivative matches the reference rate on the hedging instrument. We plan to evaluate the remaining expedients for adoption, as applicable, when contracts are modified. We currently do not expect this guidance to have a material impact on our consolidated financial statements. Refer to Note 18 - Derivative Financial Instruments for additional disclosure information relating to our hedging activity.

We have considered the applicability and impact of all ASUs. We have assessed ASUs not listed above and have determined that they were either not applicable or were not expected to have a material impact on our financial statements.

Note 2. Accounts Receivable

We sell our manufactured products to a large number of customers, primarily in the residential housing construction and remodel sectors, broadly dispersed across many domestic and foreign geographic regions. We assess the credit risk relating to our accounts receivable based on quantitative and qualitative factors, including historical credit collections within each region where we have operations. We perform ongoing credit evaluations of our customers to minimize credit risk. We do not usually require collateral for accounts receivable, but do require advance payment, guarantees, a security interest in the products sold to a customer, and/or letters of credit in certain situations. Customer accounts receivable converted to notes receivable are collateralized by inventory or other collateral.

At April 1, 2023 and December 31, 2022, we had an allowance for credit losses of $18.1 million and $16.3 million, respectively. The increase in the allowance for credit losses in the three months ended April 1, 2023 is due to the credit losses incurred from the bankruptcy of a large Australasian customer, partially offset by a reduction in our allowance for credit losses in our North America segment due to improved collections.

Note 3. Inventories

Inventories are stated at the lower of cost or net realizable value. Finished goods and work-in-process inventories include material, labor, and manufacturing overhead costs.

(amounts in thousands)	April 1, 2023		December 31, 2022
Raw materials	$	475,610	$	511,681
Work in process	29,921		31,310
Finished goods	132,272		123,464
Total inventories	$	637,803	$	666,455

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Note 4. Property and Equipment, Net

(amounts in thousands)	April 1, 2023		December 31, 2022
Property and equipment	$	2,151,549	$	2,135,848
Accumulated depreciation	(1,393,407)		(1,373,362)
Total property and equipment, net	$	758,142	$	762,486

We recorded accelerated depreciation of our plant and equipment of $2.2 million during the three months ended April 1, 2023 within restructuring and asset related charges in the accompanying consolidated statements of operations. No accelerated depreciation was recorded during the three months ended March 26, 2022.

The effect on our carrying value of property and equipment due to currency translations for foreign property and equipment, net, was an increase of $3.9 million as of April 1, 2023 compared to December 31, 2022, respectively.

Depreciation expense was recorded as follows:

	Three Months Ended
(amounts in thousands)	April 1, 2023		March 26, 2022
Cost of sales	$	22,916	$	22,512
Selling, general and administrative	1,964		1,708
Total depreciation expense	$	24,880	$	24,220

Note 5. Goodwill

The following table summarizes the changes in goodwill by reportable segment:

(amounts in thousands)	North America		Europe		Australasia		Total Reportable Segments
Balance as of December 31, 2022	$	182,269	$	199,684	$	78,552	$	460,505
Currency translation	11		3,889		(802)		3,098
Balance as of April 1, 2023	$	182,280	$	203,573	$	77,750	$	463,603

Note 6. Intangible Assets, Net

The cost and accumulated amortization values of our intangible assets were as follows:

	April 1, 2023
(amounts in thousands)	Cost		Accumulated Amortization		Net Book Value
Customer relationships and agreements	$	138,964	$	(83,241)	$	55,723
Software	121,305		(46,461)		74,844
Trademarks and trade names	53,420		(13,153)		40,267
Patents, licenses and rights	42,419		(26,522)		15,897
Total amortizable intangibles	$	356,108	$	(169,377)	$	186,731

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	December 31, 2022
(amounts in thousands)	Cost		Accumulated Amortization		Net Book Value
Customer relationships and agreements	$	137,914	$	(79,761)	$	58,153
Software	119,239		(43,208)		76,031
Trademarks and trade names	53,481		(12,563)		40,918
Patents, licenses and rights	42,821		(25,818)		17,003
Total amortizable intangibles	$	353,455	$	(161,350)	$	192,105

The effect on our carrying value of intangible assets due to currency translations for foreign intangible assets as of April 1, 2023 compared to December 31, 2022 was nominal.

Intangible assets that become fully amortized are removed from the accounts in the period that they become fully amortized. Amortization expense was recorded as follows:

	Three Months Ended
(amounts in thousands)	April 1, 2023		March 26, 2022
Amortization expense	$	7,487	$	8,145

Note 7. Accrued Expenses and Other Current Liabilities

(amounts in thousands)	April 1, 2023		December 31, 2022
Accrued sales and advertising rebates	$	76,652	$	93,337
Current portion of operating lease liability	43,546		42,494
Non-income related taxes	31,076		25,700
Accrued expenses	24,032		18,423
Current portion of warranty liability (Note 8)	23,114		23,079
Deferred revenue and customer deposits	23,104		24,753
Accrued freight	18,382		17,398
Accrued interest payable	17,508		4,038
Current portion of accrued claim costs relating to self-insurance programs	17,375		17,932
Accrued income taxes payable	9,900		12,848
Current portion of restructuring accrual (Note 15)	3,985		5,038
Legal claims provision	3,477		3,490
Current portion of derivative liability (Note 18)	2,364		3,346
Total accrued expenses and other current liabilities	$	294,515	$	291,876

The legal claims provision relates primarily to contingencies associated with the ongoing legal matters disclosed in Note 20 - Commitments and Contingencies.

The accrued sales and advertising rebates, accrued interest payable, accrued freight, and non-income related taxes can fluctuate significantly period-over-period due to timing of payments.

Note 8. Warranty Liability

Warranty terms vary from one year to lifetime on certain window and door components. Warranties are normally limited to servicing or replacing defective components for the original customer. Product defects arising within six months of sale are classified as manufacturing defects and are not included in the current period expense below. Some warranties are transferable to subsequent owners and are either limited to 10 years from the date of manufacture or require pro-rata payments from the customer. A provision for estimated warranty costs is recorded at the time of sale based on historical experience and is periodically adjusted to reflect actual experience.

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An analysis of our warranty liability is as follows:

(amounts in thousands)	April 1, 2023		March 26, 2022
Balance as of January 1	$	54,337	$	54,860
Current period charges	7,240		7,151
Experience adjustments	539		684
Payments	(7,864)		(7,742)
Currency translation	108		(4)
Balance at period end	54,360		54,949
Current portion	(23,114)		(23,387)
Long-term portion	$	31,246	$	31,562

The most significant component of our warranty liability as of April 1, 2023 and March 26, 2022 is in the North America segment. As of April 1, 2023, the warranty liability in the North America segment totaled $46.2 million after discounting future estimated cash flows at rates between 0.53% and 3%. Without discounting, the liability would have been higher by approximately $3.0 million.

Note 9. Long-Term Debt

Our long-term debt, net of original issue discount and unamortized debt issuance costs, consisted of the following:

	April 1, 2023	April 1, 2023		December 31, 2022
(amounts in thousands)	Interest Rate
Senior Secured Notes and Senior Notes	4.63% - 6.25%	$	1,050,000	$	1,050,000
Term loans	1.30% - 7.09%	540,572		541,970
Revolving credit facilities	5.93% - 8.25%	63,000		55,000
Finance leases and other financing arrangements	1.25% - 7.16%	84,995		89,784
Mortgage notes	4.62% - 5.12%	22,624		22,472
Total Debt		1,761,191		1,759,226
Unamortized debt issuance costs and original issue discounts		(10,841)		(11,597)
Current maturities of long-term debt		(29,109)		(34,391)
Long-term debt		$	1,721,241	$	1,713,238

Summaries of our significant changes to outstanding debt agreements as of April 1, 2023 are as follows:

Senior Secured Notes and Senior Notes

In May 2020, we issued $250.0 million of Senior Secured Notes bearing interest at 6.25% and maturing in May 2025 in a private placement for resale to qualified institutional buyers pursuant to Rule 144A under the Securities Act. The proceeds were net of fees and expenses associated with debt issuance, including an underwriting fee of 1.25%. Interest is payable semiannually, in arrears, each May and November.

In December 2017, we issued $800.0 million of unsecured Senior Notes in two tranches: $400.0 million bearing interest at 4.63% and maturing in December 2025, and $400.0 million bearing interest at 4.88% and maturing in December 2027 in a private placement for resale to qualified institutional buyers pursuant to Rule 144A under the Securities Act.

Term Loans

U.S. Facility - Initially executed in October 2014, we amended the Term Loan Facility in July 2021 to, among other things, extend the maturity date from December 2024 to July 2028 and provide additional covenant flexibility. Pursuant to the amendment, certain existing and new lenders advanced $550.0 million of replacement term loans, the proceeds of which were used to prepay in full the amount outstanding under the previously existing term loans. The replacement term loans bear interest at LIBOR (subject to a floor of 0.00%) plus a margin of 2.00% to 2.25% depending on JWI’s corporate credit ratings. In addition, the amendment also modifies certain other terms and provisions of the Term Loan Facility, and add language to address the replacement of LIBOR with a SOFR basis upon the June 30, 2023 cessation of the publication of LIBOR. Voluntary prepayments of the replacement term loans are permitted at any time, in certain minimum principal

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amounts, but were subject to a 1.00% premium during the first six months. The amendment requires 0.25% of the initial principal to be repaid quarterly until maturity. As a result of this amendment, we recognized debt extinguishment costs of $1.3 million, which included $1.0 million of unamortized debt issuance costs and original discount fees. As of the date of the amendment, the outstanding principal balance, net of original issue discount, was $548.6 million. As of April 1, 2023, the outstanding principal balance, net of original issue discount, was $539.3 million.

In May 2020, we entered into interest rate swap agreements with a weighted average fixed rate of 0.395% paid against one-month LIBOR floored at 0.00% with outstanding notional amounts aggregating to $370.0 million corresponding to that amount of the debt outstanding under our Term Loan Facility. Absent any action, interest rate hedges will convert to a SOFR basis after June 30, 2023, although the Company plans to proactively amend these hedges to a SOFR basis prior to that date. The interest rate swap agreements are designated as cash flow hedges of a portion of the interest obligations on our Term Loan Facility borrowings and mature in December 2023. See Note 18 - Derivative Financial Instruments for additional information on our derivative assets and liabilities.

Revolving Credit Facilities

ABL Facility - In July 2021, we amended the ABL Facility to, among other things, extend the maturity date from December 2022 to July 2026, increase the aggregate commitment to $500.0 million, provide additional covenant flexibility, conform certain terms and provisions to the Term Loan Facility, and amend the interest rate grid applicable to the loans thereunder by adding language to address the replacement of LIBOR with a SOFR basis upon the June 30, 2023 cessation of the publication of LIBOR. Pursuant to the amendment, the amount allocated to U.S. borrowers was increased to $465.0 million. The amount allocated to Canadian borrowers was maintained at $35.0 million. Borrowings under the ABL Facility bear, at the borrower’s option, interest at either a base rate plus a margin of 0.25% to 0.50% depending on excess availability or LIBOR (subject to a floor of 0.00%) plus a margin of 1.25% to 1.50% depending on excess availability. As of April 1, 2023, we had $63.0 million of outstanding borrowings, $31.4 million in letters of credit and $401.2 million available under the ABL Facility.

Australia Senior Secured Credit Facility - In June 2019, we amended the Australia Senior Secured Credit Facility, reallocating availability from the Australia Term Loan Facility and collapsing the floating rate revolving loan facility into an AUD 35.0 million interchangeable facility to be used for guarantees, asset financing, and loans of twelve months or less. The interchangeable facility does not have a set maturity date but is instead subject to an annual review each June.

In May 2020, we amended the Australia Senior Secured Credit Facility to relax certain financial covenants. The amended non-term loan portion of the facility bore line fees of 0.70%, compared to line fees of 0.50% under the previous amendment. The amendment also provided for a supplemental AUD 30.0 million floating rate revolving loan facility.

In December 2021, we amended the Australia Senior Secured Credit Facility to reinstate maintenance financial covenant ratios to pre-pandemic thresholds and renewed the facility through its next annual review. The amended facility includes line fees of 0.50%, compared to line fees of 0.70% under the previous amendment. As of April 1, 2023, we had AUD 22.5 million ($15.1 million) available under this facility.

The Australia Senior Secured Credit Facility is secured by guarantees of JWA and its subsidiaries, fixed and floating charges on the assets of JWA group, and mortgages on certain real properties owned by the JWA group. The combined agreement requires that JWA maintain certain financial ratios, including a minimum consolidated interest coverage ratio and a maximum consolidated debt to EBITDA ratio. The agreement limits dividends and repayments of intercompany loans where the JWA group is the borrower and limits loans or other financial accommodations to non-obligor entities.

At April 1, 2023, we had combined borrowing availability of $416.3 million under our revolving credit facilities.

Mortgage Notes – In December 2007, we entered into thirty-year mortgage notes secured by land and buildings in Denmark with principal payments which began in 2018. As of April 1, 2023, we had DKK 154.6 million ($22.6 million) outstanding under these notes.

Finance leases and other financing arrangements – In addition to finance leases, we include insurance premium financing arrangements and loans secured by equipment in this category. As of April 1, 2023, we had $85.0 million outstanding in this category, with maturities ranging from 2023 to 2030.

As of April 1, 2023, we were in compliance with the terms of all of our credit facilities and the indentures governing the Senior Notes and Senior Secured Notes.

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Note 10. Income Taxes

The effective income tax rate for continuing operations was 29.1% and 26.3% for the three months ended April 1, 2023 and March 26, 2022, respectively. In accordance with ASC 740-270, we recorded a tax expense of $6.2 million and a tax benefit of $0.2 million from operations in the three months ended April 1, 2023 and March 26, 2022, respectively, by applying our estimated annual effective tax rate to year-to-date income for includable entities during the respective periods. Our estimated annual effective tax rate for both years includes the impact of the tax on GILTI. Entities that are currently generating losses and for which there is a full valuation allowance are excluded from the worldwide effective tax rate calculation and are calculated separately.

The impact of significant discrete items is separately recognized in the quarter in which they occur. The tax expense for discrete items included in the tax provision for continuing operations for the three months ended April 1, 2023 was $1.0 million, comprised primarily of $1.2 million of tax expense attributable to share-based compensation, partially offset by $0.2 million of tax benefit attributable to uncertain tax positions related to Denmark and Germany taken in the previous years. Discrete tax items recorded in the three months ended March 26, 2022 were insignificant to the tax expense recorded in the respective period.

Under ASC 740-10, we provide for uncertain tax positions and the related interest expense by adjusting unrecognized tax benefits and accrued interest accordingly. We recognize potential interest and penalties related to unrecognized tax benefits in income tax expense. We had unrecognized tax benefits without regard to accrued interest of $31.5 million and $29.3 million as of April 1, 2023 and December 31, 2022, respectively.

The Company continually evaluates its global cash needs. As of April 1, 2023, the Company continues to make an indefinite reinvestment assertion on the future earnings of its foreign subsidiaries in excess of previously taxed earnings and no additional deferred tax expense is recorded.

Note 11. Segment Information

We report our segment information in the same way management internally organizes the business to assess performance and make decisions regarding allocation of resources in accordance with ASC 280-10- Segment Reporting. We have three reportable segments, organized and managed principally in geographic regions. Our reportable segments are North America, Europe, and Australasia. We report all other business activities in Corporate and unallocated costs. Factors considered in determining the three reportable segments include the nature of business activities, the management structure accountable directly to the CODM, the discrete financial information available and the information regularly reviewed by the CODM. Management reviews net revenues and Adjusted EBITDA to evaluate segment performance and allocate resources. We define Adjusted EBITDA as net income (loss), adjusted for the following items: (income) loss from discontinued operations, net of tax; income tax expense (benefit); depreciation and amortization; interest expense, net; and certain special items consisting of non-recurring legal and professional expenses and settlements; restructuring and asset related charges; facility closure, consolidation, and other related costs and adjustments; M&A related costs; share-based compensation expense; non-cash foreign exchange transaction/translation (income) loss; and other special items.

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The following tables set forth certain information relating to our segments’ operations:

(amounts in thousands)	North America		Europe		Australasia		Total Operating Segments		Corporate and Unallocated Costs		Total Consolidated
Three Months Ended April 1, 2023
Total net revenues	$	768,122	$	312,621	$	145,670	$	1,226,413	$	—	$	1,226,413
Intersegment net revenues	(89)		(132)		(3,575)		(3,796)		—		(3,796)
Net revenues from external customers	$	768,033	$	312,489	$	142,095	$	1,222,617	$	—	$	1,222,617
Three Months Ended March 26, 2022
Total net revenues	$	722,571	$	323,306	$	130,433	$	1,176,310	$	—	$	1,176,310
Intersegment net revenues	(228)		(34)		(5,026)		(5,288)		—		(5,288)
Net revenues from external customers	$	722,343	$	323,272	$	125,407	$	1,171,022	$	—	$	1,171,022

(amounts in thousands)	North America		Europe		Australasia		Total Operating Segments		Corporate and Unallocated Costs		Total Consolidated
Three Months Ended April 1, 2023
Net income (loss)	$	35,249	$	7,299	$	5,317	$	47,865	$	(32,731)	$	15,134
Income tax expense (benefit)	14,533		1,415		2,348		18,296		(12,084)		6,212
Depreciation and amortization	17,798		7,433		4,447		29,678		3,112		32,790
Interest expense, net	2,834		128		869		3,831		17,390		21,221
Restructuring and asset related charges	7,812		1,267		—		9,079		187		9,266
Net other special items	972		95		(386)		681		8,231		8,912
Adjusted EBITDA	$	79,198	$	17,637	$	12,595	$	109,430	$	(15,895)	$	93,535
Three Months Ended March 26, 2022
Net income (loss)	$	38,068	$	(631)	$	2,017	$	39,454	$	(39,982)	$	(528)
Income tax expense (benefit)(1)	1,008		1,398		996		3,402		(3,590)		(188)
Depreciation and amortization	16,685		7,892		4,844		29,421		3,144		32,565
Interest expense, net	1,127		1,805		1,014		3,946		14,408		18,354
Restructuring and asset related charges	—		—		22		22		(21)		1
Net other special items	10,197		4,234		1,479		15,910		14,135		30,045
Adjusted EBITDA	$	67,085	$	14,698	$	10,372	$	92,155	$	(11,906)	$	80,249

(1)Income tax expense (benefit) in Corporate and unallocated costs includes the tax impact of US Operations in the three months ended March 26, 2022.

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Reconciliations of net income to Adjusted EBITDA are as follows:

	Three Months Ended
(amounts in thousands)	April 1, 2023		March 26, 2022
Net income (loss)	$	15,134	$	(528)
Income tax expense (benefit)	6,212		(188)
Depreciation and amortization	32,790		32,565
Interest expense, net	21,221		18,354
Special items:
Legal and professional expenses and settlements(1)	1,822		1,916
Restructuring and asset related charges(2)	9,266		1
Facility closure, consolidation, and other related costs and adjustments(3)	1,347		132
M&A related costs(4)	4,550		3,270
Share-based compensation expense(5)	4,383		9,664
Non-cash foreign exchange transaction/translation (income) loss(6)	(3,066)		6,218
Other special items (7)	(124)		8,845
Adjusted EBITDA	$	93,535	$	80,249

.

(1)Legal and professional expenses and settlements primarily related to litigation and transformation initiatives.

(2)Represents severance, accelerated depreciation charges, and other expenses directly incurred as a result of restructuring events, including equipment relocation expenses.

(3)Facility closure, consolidation, and other related costs and adjustments primarily related to winding down certain facilities closed in 2022.

(4)M&A related costs consists primarily of legal and professional expenses related to the potential dispositions of Towanda and our Australasia segment.

(5)Represents non-cash equity-based compensation expense related to the issuance of share-based awards.

(6)Non-cash foreign exchange transaction/translation (income)/loss primarily consists of (gains)/losses associated with fair value adjustments of foreign currency derivatives and revaluation of intercompany balances.

(7)Other special items not core to ongoing business activity in the three months ended March 26, 2022 primarily consists of $6.9 million in expenses related to fire damage and downtime at one of our facilities in our North America segment.

To conform with current period presentation, certain amounts in prior period information have been reclassified.

Note 12. Capital Stock

Preferred Stock - Our Board of Directors is authorized to issue Preferred Stock from time to time in one or more series and with such rights, privileges, and preferences as the Board of Directors shall from time to time determine. We have not issued any shares of Preferred Stock.

Common Stock - Common Stock includes the basis of shares outstanding plus amounts recorded as additional paid-in capital. Shares outstanding exclude the shares issued to the Employee Benefit Trust that are considered similar to treasury shares and total 193,941 shares at both April 1, 2023 and December 31, 2022 with a total original issuance value of $12.4 million.

We record share repurchases on their trade date and reduce shareholders’ equity and increase accounts payable. Repurchased shares are retired, and the excess of the repurchase price over the par value of the shares is charged to retained earnings.

On July 27, 2021, our Board of Directors increased our previous repurchase authorization to a total of $400.0 million with no expiration date.

On July 28, 2022, our Board of Directors authorized a new share repurchase program, replacing our previous share repurchase authorization, with an aggregate value of $200.0 million and no expiration date. As of April 1, 2023, there have been no share repurchases under this program.

We repurchased 1,777,266 shares of our Common Stock at an average price of $23.26 during the three months ended March 26, 2022. We did not repurchase shares during the three months ended April 1, 2023.

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Note 13. Earnings Per Share

The basic and diluted income per share calculations were determined based on the following share data:

	Three Months Ended
	April 1, 2023	March 26, 2022
Weighted average outstanding shares of Common Stock basic	84,598,945	89,802,974
Restricted stock units and options to purchase Common Stock	550,143	—
Weighted average outstanding shares of Common Stock diluted	85,149,088	89,802,974

The following table provides the securities that could potentially dilute basic earnings per share in the future but were not included in the computation of diluted income per share as their inclusion would be anti-dilutive:

	Three Months Ended
	April 1, 2023	March 26, 2022
Common Stock options	1,669,638	1,668,613
Restricted stock units	782,751	1,086,958
Performance share units	192,940	390,084

Note 14. Stock Compensation

The activity under our incentive plans for the periods presented are reflected in the following tables:

	Three Months Ended
	April 1, 2023			March 26, 2022
	Shares	Weighted Average Exercise Price Per Share		Shares	Weighted Average Exercise Price Per Share
Options granted	235,892	$	13.29	310,554	$	24.17
Options canceled	7,395	$	26.33	37,770	$	28.57
Options exercised	—	$	—	66,946	$	12.55
	Shares	Weighted Average Grant Date Fair Value		Shares	Weighted Average Grant Date Fair Value
RSUs granted	1,336,005	$	13.21	845,395	$	24.18
PSUs granted	292,064	$	17.36	158,587	$	29.24

Stock-based compensation expense was $4.4 million and $9.7 million for the three months ended April 1, 2023 and March 26, 2022, respectively. The three months ended April 1, 2023 had comparatively less expense than the three months ended March 26, 2022 primarily due to executive management turnover and lower outstanding performance shares in 2023. As of April 1, 2023, we had $27.7 million of total unrecognized compensation expense related to non-vested share-based compensation arrangements. This cost is expected to be recognized over the remaining weighted-average vesting period of 1.85 years.

Note 15. Restructuring and Asset Related Charges

We engage in restructuring activities focused on improving productivity and operating margins. Restructuring costs primarily relate to costs associated with workforce reductions, plant consolidations and closure, and changes to the management structure to align with our operations. Other restructuring associated costs, primarily consist of equipment relocation costs. Asset related charges consist of accelerated depreciation of assets due to changes in asset useful lives.

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The following table summarizes the restructuring and asset related charges for the periods indicated:

(amounts in thousands)	North America		Europe		Australasia		Corporate and Unallocated Costs		Total Consolidated
Three Months Ended April 1, 2023
Restructuring charges	$	3,056	$	1,087	$	—	$	187	$	4,330
Other restructuring associated costs	2,585		180		—		—		2,765
Asset related charges	2,171		—		—		—		2,171
Other restructuring associated costs and asset related charges	4,756		180		—		—		4,936
Total restructuring and asset related charges	$	7,812	$	1,267	$	—	$	187	$	9,266

The following is a summary of the restructuring accruals recorded and charges incurred:

(amounts in thousands)
Balance as of January 1, 2023	$	5,038
Current period charges	6,915
Payments	(8,018)
Currency translation	50
Balance as of April 1, 2023	$	3,985

Restructuring accruals are expected to be paid within the next 12 months and are included within accrued expenses and other current liabilities in the consolidated balance sheet.

Restructuring accruals recorded and charges incurred in the three months ended March 26, 2022 were immaterial.

On January 26, 2023, we announced to employees a restructuring plan to close a manufacturing facility in Atlanta, Georgia in a continuing effort to optimize the Company’s footprint and drive operational efficiencies (the “Plan”). The Company expects to incur pre-tax restructuring expenses, other closure costs and capital spending of approximately $19.3 million, which includes $3.0 million of capital expenditures, in connection with the Plan. Through April 1, 2023, $8.1 million has been expensed in connection with the Plan, primarily relating to accelerated depreciation and amortization, equipment relocation costs, and restructuring severance costs. The Company expects to incur a total pre-tax cash outlay of approximately $15.0 million by the end of the third quarter of 2023 in connection with the Plan, of which $3.2 million of cash outlay has been incurred as of April 1, 2023.

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Note 16. Held for Sale

During 2021, the Company ceased the appeal process for its litigation with Steves & Sons, Inc. (“Steves”) further described in Note 20 - Commitments and Contingencies. As a result, we are required to divest the Company’s Towanda, PA operations (“Towanda”). As of April 1, 2023 and December 31, 2022, the assets and liabilities associated with the sale of Towanda qualify as held for sale. Since the Company will continue manufacturing door skins for its internal needs, the divestiture decision did not represent a strategic shift thereby precluding the divestiture as qualifying as a discontinued operation.

The assets and liabilities included within the summary below are expected to be disposed of within the next twelve months and are included in assets held for sale and liabilities held for sale in the accompanying balance sheet. The results of Towanda will continue to be reported within our North America operations until the divestiture is finalized.

(amounts in thousands)	April 1, 2023		December 31, 2022
Assets
Inventory	$	16,749	$	16,592
Other current assets	192		110
Property and equipment	44,271		41,600
Intangible assets	1,472		1,471
Goodwill	65,000		65,000
Operating lease assets	850		975
Assets held for sale	$	128,534	$	125,748
Liabilities
Accrued payroll and benefits	$	983	$	852
Accrued expenses and other current liabilities	5,363		4,707
Current maturities of long term debt	—		1
Operating lease liability	341		480
Liabilities held for sale	$	6,687	$	6,040

Note 17. Other Income, Net

The table below summarizes the amounts included in other income, net in the accompanying consolidated statements of operations:

	Three Months Ended
(amounts in thousands)	April 1, 2023		March 26, 2022
Foreign currency (gains) losses, net	$	(3,459)	$	1,711
Insurance reimbursement	(1,215)		—
Pension expense (income)	1,788		(1,427)
Recovery of cost from interest received on impaired notes	(1,394)		(7,027)
Governmental assistance	(147)		(65)
Other items	(845)		(529)
Total Other Income, Net	$	(5,272)	$	(7,337)

Note 18 Derivative Financial Instruments

Foreign currency derivatives – As a multinational corporation, we are exposed to the impact of foreign currency fluctuations. To the extent borrowings, sales, purchases, or other transactions are not executed in the local currency of the operating unit, we are exposed to foreign currency risk. In most of the countries in which we operate, the exposure to foreign currency movements is limited because the operating revenues and expenses of our business units are substantially denominated in the local currency. To mitigate the exposure, we may enter into a variety of foreign currency derivative contracts. To manage the effect of exchange fluctuations on forecasted sales, purchases, acquisitions, capital expenditures,

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and certain intercompany transactions that are denominated in foreign currencies, we have foreign currency derivative contracts with a total notional amount of $97.3 million as of April 1, 2023. We also are subject to currency translation risk associated with converting our foreign operations’ financial statements into U.S. dollars. To mitigate the impact to the consolidated earnings of the Company from the effect of the translation of certain subsidiaries’ local currency results into U.S. dollars, we have foreign currency derivative contracts with a total notional amount of $112.1 million as of April 1, 2023. We do not use derivative financial instruments for trading or speculative purposes. As of April 1, 2023, we have not elected hedge accounting for any foreign currency derivative contracts. We record mark-to-market changes in the values of these derivatives in other income, net. We recorded mark-to-market gains of $1.5 million and losses of $1.3 million relating to foreign currency derivatives in the three months ended April 1, 2023 and March 26, 2022, respectively.

Interest rate derivatives – We are exposed to interest rate risk in connection with our variable rate long-term debt and we partially mitigate this risk through interest rate derivatives such as swaps and caps. In May 2020, we entered into interest rate swap agreements to manage this risk. The interest rate swap agreements have outstanding notional amounts aggregating to $370.0 million and mature in December 2023 with a weighted average fixed rate of 0.395% swapped against one-month USD LIBOR floored at 0.00%. Absent any action, interest rate hedges will convert to a SOFR basis after June 30, 2023, although the Company plans to proactively amend these hedges to a SOFR basis prior to that date. The interest rate swap agreements are designated as cash flow hedges and effectively fix the interest rate on a corresponding portion of the aggregate debt outstanding under our Term Loan Facility.

No portion of these interest rate contracts were deemed ineffective during the three months ended April 1, 2023. We recorded pre-tax mark-to-market losses of $0.3 million and gains of $8.9 million during the three months ended April 1, 2023 and March 26, 2022, respectively, in other comprehensive income. We reclassified gains previously recorded in other comprehensive income to interest income of $3.8 million during the three months ended April 1, 2023, and losses to interest expense of $0.2 million during the three months ended March 26, 2022.

As of April 1, 2023, approximately $12.1 million is expected to be reclassified to interest income until the instruments mature in December 2023.

Other derivative instruments – From time to time, we may enter into other types of derivative instruments immaterial to the business. Unless otherwise disclosed, these instruments are not designated as hedging instruments and mark-to-market adjustments are recorded in the statement of operations each period.

The fair values of derivative instruments held are as follows:

	Derivative assets
(amounts in thousands)	Balance Sheet Location	April 1, 2023		December 31, 2022
Derivatives designated as hedging instruments:
Interest rate contracts	Other current assets	$	12,101	$	16,235
Derivatives not designated as hedging instruments:
Foreign currency forward contracts	Other current assets	$	4,472	$	3,809
Other derivative instruments	Other current assets	55		73

	Derivatives liabilities
(amounts in thousands)	Balance Sheet Location	April 1, 2023		December 31, 2022
Derivatives not designated as hedging instruments:
Foreign currency forward contracts	Accrued expenses and other current liabilities	$	2,174	$	3,058
Other derivative instruments	Accrued expenses and other current liabilities	190		288

Note 19. Fair Value of Financial Instruments

We record financial assets and liabilities at fair value based on FASB guidance related to fair value measurements. The guidance requires fair value to be determined based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. Three levels of inputs may be used to measure fair value:

Level 1 – Quoted prices in active markets for identical assets or liabilities.

Level 2 – Quoted market-based inputs or unobservable inputs that are corroborated by market data.

Level 3 – Unobservable inputs that are not corroborated by market data.

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The recorded carrying amounts and fair values of these instruments were as follows:

	April 1, 2023
(amounts in thousands)	Carrying Amount		Total Fair Value		Level 1		Level 2		Level 3
Assets:
Cash equivalents	$	1,714	$	1,714	$	—	$	1,714	$	—
Derivative assets, recorded in other current assets	16,628		16,628		—		16,628		—
Deferred compensation plan assets, recorded in other assets	1,157		1,157		—		1,157		—
Liabilities:
Debt, recorded in long-term debt and current maturities of long-term debt	$	1,761,191	$	1,657,803	$	—	$	1,657,803	$	—
Derivative liabilities, recorded in accrued expenses and other current liabilities	2,364		2,364		—		2,364		—

	December 31, 2022
(amounts in thousands)	Carrying Amount		Total Fair Value		Level 1		Level 2		Level 3
Assets:
Cash equivalents	$	6,078	$	6,078	$	—	$	6,078	$	—
Derivative assets, recorded in other current assets	20,117		20,117		—		20,117		—
Deferred compensation plan assets, recorded in other assets	725		725		—		725		—
Liabilities:
Debt, recorded in long-term debt and current maturities of long-term debt	$	1,759,226	$	1,555,367	$	—	$	1,555,367	$	—
Derivative liabilities, recorded in accrued expenses and other current assets	3,346		3,346		—		3,346		—

Derivative assets and liabilities reported in level 2 primarily include foreign currency derivative contracts and interest rate swap agreements. See Note 18- Derivative Financial Instruments for additional information about our derivative assets and liabilities.

Deferred compensation plan assets reported in level 2 consist of mutual funds.

There are no material non-financial assets or liabilities as of April 1, 2023 or December 31, 2022.

Note 20. Commitments and Contingencies

Litigation – We are involved in various legal proceedings, claims, and government audits arising in the ordinary course of business. We record our best estimate of a loss when the loss is considered probable and the amount of such loss can be reasonably estimated. When a loss is probable and there is a range of estimated loss with no best estimate within the range, we record the minimum estimated liability related to the lawsuit or claim. As additional information becomes available, we reassess the potential liability and revise our accruals, if necessary. Because of uncertainties related to the resolution of lawsuits and claims, the ultimate outcome may differ materially from our estimates.

Other than the matters described below, there were no proceedings or litigation matters involving the Company or its property as of April 1, 2023 that we believe would have a material adverse effect on our consolidated financial position or cash flows, although they could have a material adverse effect on our operating results for a particular reporting period.

Steves & Sons, Inc. vs JELD-WEN, Inc. – We sell molded door skins to certain customers pursuant to long-term contracts, and these customers in turn use the molded door skins to manufacture interior doors and compete directly against us in the marketplace. We gave notice of termination of one of these contracts and, on June 29, 2016, the counterparty to the agreement, Steves and Sons, Inc. (“Steves”) filed a claim against JWI in the U.S. District Court for the Eastern District of Virginia, Richmond Division (the “Eastern District of Virginia”). The complaint alleged that our acquisition of CMI, a competitor in the molded door skins market, together with subsequent price increases and other alleged acts and omissions, violated antitrust laws, and constituted a breach of contract and breach of warranty. Specifically, the complaint alleged that our acquisition of CMI substantially lessened competition in the molded door skins market. The complaint sought

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declaratory relief, ordinary and treble damages, and injunctive relief, including divestiture of certain assets acquired in the CMI acquisition.

In February 2018, a jury in the Eastern District of Virginia returned a verdict that was unfavorable to JWI with respect to Steves’ claims that our acquisition of CMI violated Section 7 of the Clayton Act, and found that JWI breached the supply agreement between the parties (the “Original Action”). The verdict awarded Steves $12.2 million for past damages under both the Clayton Act and breach of contract claims and $46.5 million in future lost profits under the Clayton Act claim.

During the course of the proceedings in the Eastern District of Virginia, we discovered certain facts that led us to conclude that Steves, its principals, and certain former employees of the Company had misappropriated Company trade secrets, violated the terms of various agreements between the Company and those parties, and violated other laws. On May 11, 2018, a jury in the Eastern District of Virginia returned a verdict on our trade secrets claims against Steves and awarded damages in the amount of $1.2 million. The presiding judge entered a judgment in our favor for those damages, and the entire amount has been paid by Steves. On August 16, 2019, the presiding judge granted Steves’ request for an injunction, prohibiting us from pursuing certain claims against individual defendants pending in Bexar County, Texas (the “Steves Texas Trade Secret Theft Action”). On September 11, 2019, JELD-WEN filed a notice of appeal of the Eastern District of Virginia’s injunction to the Fourth Circuit Court of Appeals (the “Fourth Circuit”).

On March 13, 2019, the presiding judge entered an Amended Final Judgment Order in the Original Action, awarding $36.5 million in past damages under the Clayton Act (representing a trebling of the jury’s verdict) and granting divestiture of certain assets acquired in the CMI acquisition, subject to appeal. The judgment also conditionally awarded damages in the event the judgment was overturned on appeal. Specifically, the court awarded $139.4 million as future antitrust damages in the event the divestiture order was overturned on appeal and $9.9 million as past contract damages in the event both the divestiture and antitrust claims were overturned on appeal.

On April 12, 2019, Steves filed a petition requesting an award of its fees and a bill of costs, seeking $28.4 million in attorneys’ fees and $1.7 million in costs in connection with the Original Action. On November 19, 2019, the presiding judge entered an order for further relief awarding Steves an additional $7.1 million in damages for pricing differences from the date of the underlying jury verdict through May 31, 2019 (the “Pricing Action”). We also appealed that ruling. On April 14, 2020, Steves filed a motion for further supplemental relief for pricing differences from the date of the prior order and going forward through the end of the parties’ current supply agreement (the “Future Pricing Action”). We opposed that request for further relief.

JELD-WEN filed a supersedeas bond and notice of appeal of the judgment, which was heard by the Fourth Circuit on May 29, 2020. On February 18, 2021, the Fourth Circuit issued its decision on appeal in the Original Action, affirming the Amended Final Judgment Order in part and vacating and remanding in part. The Fourth Circuit vacated the Eastern District of Virginia’s alternative $139.4 million lost-profits award, holding that award was premature because Steves has not suffered the purported injury on which its claim for future lost profits rests. The Fourth Circuit also vacated the Eastern District of Virginia’s judgment for Sam Steves, Edward Steves, and John Pierce on JELD-WEN’s trade secrets claims. The Fourth Circuit affirmed the Eastern District of Virginia’s finding of antitrust injury and its award of $36.5 million in past antitrust damages. It also affirmed the Eastern District of Virginia’s divestiture order, while clarifying that JELD-WEN retains the right to challenge the terms of any divestiture, including whether a sale to any particular buyer will serve the public interest, and made clear that the Eastern District of Virginia may need to revisit its divestiture order if the special master who has been appointed by the presiding judge cannot locate a satisfactory buyer. JELD-WEN then filed a motion for rehearing en banc with the Fourth Circuit that was denied on March 22, 2021.

Following a thorough review, and consistent with our practice, we concluded that it is in the best interest of the Company and its stakeholders to move forward with the divestiture of Towanda and certain related assets. Although the Company did not seek Supreme Court review of the Fourth Circuit’s February 18, 2021 decision, the Company retains the legal right to challenge the divestiture process and the final divestiture order. We made estimates related to the divestiture in the preparation of our financial statements; however, there can be no guarantee that the divestiture will be consummated. The divestiture process is ongoing, and the special master is overseeing this process. Although the Company has decided to divest, we continue to believe that Steves’ claims lacked merit and that it was not entitled to the extraordinary remedy of divestiture. We continue to believe that the judgment in accordance with the verdict was improper under applicable law.

During the pendency of the Original Action, on February 14, 2020, Steves filed a complaint and motion for preliminary injunction in the Eastern District of Virginia alleging that we breached the long-term supply agreement between the parties, including, among other claims, by incorrectly calculating the allocation of door skins owed to Steves (the “Allocation Action”). Steves sought an additional allotment of door skins and damages for violation of antitrust laws, tortious interference, and breach of contract. On April 10, 2020, the presiding judge granted Steves’ motion for preliminary injunction, and the parties settled the issues underlying the preliminary injunction on April 30, 2020 and the Company reserved the right to appeal the ruling in the Fourth Circuit. The Company believed all the claims lacked merit and moved to dismiss the antitrust and tortious interference claims.

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On June 2, 2020, we entered into a settlement agreement with Steves to resolve the Pricing Action, the Future Pricing Action, and the Allocation Action. As a result of the settlement, Steves filed a notice of satisfaction of judgment in the Pricing Action, withdrew its Future Pricing Action with prejudice, and filed a stipulated dismissal with prejudice in the Allocation Action. The Company also withdrew its appeal of the Pricing Action. The parties agreed to bear their own respective attorneys’ fees and costs in these actions. In partial consideration of the settlement, JWI and Steves entered into an amended supply agreement satisfactory to both parties that, by its terms, ended on September 10, 2021. This settlement had no effect on the Original Action between the parties except to agree that certain specific terms of the Amended Final Judgment Order in the Original Action would apply to the amended supply agreement during the pendency of the appeal of the Original Action. On April 2, 2021, JWI and Steves filed a stipulation regarding the amended supply agreement in the Original Action, stating that regardless of whether the case remains on appeal as of September 10, 2021, and absent further order of the court, the amended supply agreement would be extended until the divestiture of Towanda and certain related assets is complete and Steves’ new supply agreement with the company that acquires Towanda is in effect.

We continue to believe the claims in the settled actions lacked merit and made no admission of liability in these matters.

On October 7, 2021, we entered into a settlement agreement with Steves to resolve the following: (i) Steves’ past and any future claims for attorneys’ fees, expenses, and costs in connection with the Original Action, except that Steves and JWI each reserved the right to seek attorneys’ fees arising out of any challenge of the divestiture process or the final divestiture order; (ii) the Steves Texas Trade Secret Theft Action and the related Fourth Circuit appeal of the Eastern District of Virginia’s injunction in the Original Action; (iii) the past damages award in the Original Action; and (iv) any and all claims and counterclaims, known or unknown, that were asserted or could have been asserted against each other from the beginning of time through the date of the settlement agreement. As a result of the settlement, the parties filed a stipulated notice of satisfaction of the past antitrust damages judgment and a stipulated notice of settlement of Steves’ claim for attorneys’ fees, expenses, and costs against JWI in the Original Action, and Steves filed a notice of withdrawal of its motion for attorneys’ fees and expenses and bill of costs in the Original Action. The Company also filed a notice of dismissal with prejudice and agreed to take no judgment in the Steves Texas Trade Secret Theft Action, and the parties filed a joint agreement for dismissal of the injunction appeal in the Fourth Circuit. On November 3, 2021, we paid $66.4 million to Steves under the settlement agreement.

Cambridge Retirement System v. JELD-WEN Holding, Inc., et al. – On February 19, 2020, Cambridge Retirement System filed a putative class action lawsuit in the Eastern District of Virginia against the Company, current and former Company executives, and various Onex-related entities alleging violations of Section 10(b) and Rule 10b-5 of the Exchange Act, as well as violations of Section 20(a) of the Exchange Act against the individual defendants and Onex-related entities (“Cambridge”). The lawsuit sought compensatory damages, equitable relief, and an award of attorneys’ fees and costs. On May 8, 2020, the Public Employees Retirement System of Mississippi and the Plumbers and Pipefitters National Pension Fund were named as co-lead plaintiffs and filed an amended complaint on June 22, 2020.

On April 20, 2021, the parties reached an agreement in principle to resolve this securities class action. The agreement contemplated a full release of claims through the date of preliminary court approval of the settlement in exchange for a payment of $39.5 million, primarily funded by the Company’s D&O insurance carriers, except $5.0 million which was provisionally funded by the Company and remains subject to dispute with insurance carriers. On November 22, 2021, the Court granted final approval of the settlement agreement. The deadline to appeal the entry of the final approval order and judgment was December 22, 2021, and no party or class member filed an appeal. The Company continues to believe that the plaintiffs’ claims lacked merit and has denied any liability or wrongdoing for the claims made against the Company.

In re JELD-WEN Holding, Inc. Derivative Litigation – On February 2, 2021, Jason Aldridge, on behalf of the Company, filed a derivative action in the U.S. District Court for the District of Delaware against certain current and former executives and directors of the Company, alleging that the individual defendants breached their fiduciary duties by allowing the wrongful acts alleged in the Steves and Cambridge actions, as well as violations of Section 14(a) and 20(a) of the Exchange Act, unjust enrichment, and waste of corporate assets among other allegations (the “Aldridge Action”). The lawsuit sought compensatory damages, equitable relief, and an award of attorneys’ fees and costs. The plaintiff filed an amended complaint on May 10, 2021.

On June 21, 2021, prior to a response from the Company in the Aldridge Action, Shieta Black and the Board of Trustees of the City of Miami General Employees’ & Sanitation Employees’ Retirement Trust, on behalf of the Company, filed a derivative action in the U.S. District Court for the District of Delaware against certain current and former executives and directors of the Company and Onex Corporation (“Onex”), alleging that the defendants breached their fiduciary duties by allowing the wrongful acts alleged in the Steves and Cambridge actions, as well as insider trading, and unjust enrichment among other allegations (the “Black Action”). The lawsuit sought compensatory damages, corporate governance reforms, restitution, equitable relief, and an award of attorneys’ fees and costs. The court granted the Black and Aldridge plaintiffs in motion to consolidate the lawsuits on July 16, 2021.

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On June 20, 2022, the parties entered into a settlement agreement of the consolidated matters, which was approved by the Court on approval of the December 20, 2022, and the cases were dismissed with prejudice. As part of the settlement, the Company, as putative plaintiff, received approximately $10.5 million after attorneys’ fees and costs were deducted in January 2023.

In re Interior Molded Doors Antitrust Litigation – On October 19, 2018, Grubb Lumber Company, on behalf of itself and others similarly situated, filed a putative class action lawsuit against us and one of our competitors in the doors market, Masonite Corporation (“Masonite”), in the Eastern District of Virginia. We subsequently received additional complaints from and on behalf of direct and indirect purchasers of interior molded doors. The suits were consolidated into two separate actions, a Direct Purchaser Action and an Indirect Purchaser Action. The suits alleged that Masonite and JELD-WEN violated Section 1 of the Sherman Act, and in the Indirect Purchaser Action, related state law antitrust and consumer protection laws, by engaging in a scheme to artificially raise, fix, maintain, or stabilize the prices of interior molded doors in the United States. The complaints sought ordinary and treble damages, declaratory relief, interest, costs, and attorneys’ fees.

On August 31, 2020, JELD-WEN and Masonite entered into a settlement agreement with the putative Direct Purchaser     

class to resolve the Direct Purchaser Action. Each defendant agreed to pay a total of $30.8 million to the named plaintiffs and the settlement class in exchange for a full release of claims through the date of preliminary approval of the revised settlement, which the court granted on February 5, 2021. In addition, on September 4, 2020, JELD-WEN and Masonite entered into a separate settlement agreement with the putative Indirect Purchaser class to resolve the Indirect Purchaser Action. Each defendant agreed to pay $9.75 million to the named plaintiffs and the settlement class in exchange for a full release of claims through the execution date of the settlement agreement. The final fairness hearing in the Direct Purchaser Action was held on June 2, 2021, and the court entered a final approval order and judgment on June 3, 2021. On June 17, 2021, the Company made the settlement payment to the named plaintiffs and the settlement class in the Direct Purchaser Action. The deadline to appeal the entry of the final approval order and judgment was July 7, 2021, and no party or class member filed an appeal. The final fairness hearing in the Indirect Purchaser Action was held on July 26, 2021 and the court issued a final approval order and judgment on July 27, 2021. On August 10, 2021, the Company made the settlement payment to the named plaintiffs and the settlement class in the Indirect Purchaser Action. The deadline to appeal the entry of the final approval order and judgment was August 26, 2021, and no party or class member filed an appeal. The Company continues to believe that the plaintiffs’ claims lacked merit and has denied any liability or wrongdoing for the claims made against the Company.

Canadian Antitrust Litigation – On May 15, 2020, Développement Émeraude Inc., on behalf of itself and others similarly situated, filed a putative class action lawsuit against the Company and Masonite in the Superior Court of the Province of Quebec, Canada, which was served on us on September 18, 2020 (“the Quebec Action”). The putative class consists of any person in Canada who, since October 2012, purchased one or more interior molded doors from the Company or Masonite. The suit alleges an illegal conspiracy between the Company and Masonite to agree on prices, the distribution of market shares and/or the production levels of interior molded doors and that the plaintiffs suffered damages in that they were charged and paid higher prices for interior molded doors than they would have had to pay but for the alleged anti-competitive conduct. The plaintiffs are seeking compensatory and punitive damages, attorneys’ fees and costs. On September 9, 2020, Kate O’Leary Swinkels, on behalf of herself and others similarly situated, filed a putative class action against the Company and Masonite in the Federal Court of Canada, which was served on us on September 29, 2020 (the “Federal Court Action”). The Federal Court Action makes substantially similar allegations to the Quebec Action and the putative class is represented by the same counsel. In February 2021, the plaintiff in the Federal Court Action issued a proposed Amended Statement of Claim that replaced the named plaintiff, Kate O’Leary Swinkels, with David Regan. The plaintiff has sought a stay of the Quebec Action while the Federal Court Action proceeds. We anticipate a hearing on the certification of the Federal Court Action in 2023. The Company believes both the Quebec Action and the Federal Court Action lack merit and intends to vigorously defend against them.

We have evaluated the claims against us and recorded provisions based on management’s judgment about the probable outcome of the litigation and have included our estimates in accrued expenses in the accompanying balance sheets. See Note 7 - Accrued Expenses and Other Current Liabilities. While we expect a favorable resolution to these matters, the dispute resolution process could be lengthy, and if the plaintiffs were to prevail completely or substantially in the respective matters described above, such an outcome could have a material adverse effect on our operating results, consolidated financial position, or cash flows.

Self-Insured Risk – We self-insure substantially all of our domestic business liability risks including general liability, product liability, warranty, personal injury, auto liability, workers’ compensation, and employee medical benefits. Excess insurance policies from independent insurance companies generally cover exposures between $5.0 million and $200.0 million for domestic product liability risk and exposures between $3.0 million and $200.0 million for auto, general liability, personal injury, and workers’ compensation. We have no stop loss insurance covering our self-insured employee medical plan and are responsible for all claims thereunder. We estimate our provision for self-insured losses based upon an evaluation of current claim exposure and historical loss experience. Actual self-insurance losses may vary significantly

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from these estimates. At April 1, 2023 and December 31, 2022, our accrued liability for self-insured risks was $92.0 million and $92.6 million, respectively.

Indemnifications – At April 1, 2023, we had commitments related to certain representations made in contracts for the purchase or sale of businesses or property. These representations primarily relate to past actions such as responsibility for transfer taxes if they should be claimed, and the adequacy of recorded liabilities, warranty matters, employment benefit plans, income tax matters, or environmental exposures. These guarantees or indemnification responsibilities typically expire within one to three years. We are not aware of any material amounts claimed or expected to be claimed under these indemnities. From time to time and in limited geographic areas, we have entered into agreements for the sale of our products to certain customers that provide additional indemnifications for liabilities arising from construction or product defects. We cannot estimate the potential magnitude of such exposures, but to the extent specific liabilities have been identified related to product sales, liabilities have been provided in the warranty accrual in the accompanying consolidated balance sheets.

Other Financing Arrangements – At times we are required to provide letters of credit, surety bonds, or guarantees to meet various performance, legal, warranty, environmental, workers compensation, licensing, utility, and governmental requirements. Stand-by letters of credit are provided to certain customers and counterparties in the ordinary course of business as credit support for contractual performance guarantees, advanced payments received from customers, and future funding commitments. The stated values of these letters of credit agreements, surety bonds, and guarantees were $67.6 million at April 1, 2023 and December 31, 2022, respectively.

Environmental Contingencies – We periodically incur environmental liabilities associated with remediating our current and former manufacturing sites as well as penalties for not complying with environmental rules and regulations. We record a liability for remediation costs when it is probable that we will be responsible for such costs and the costs can be reasonably estimated. These environmental liabilities are estimated based on current available facts and current laws and regulations. Accordingly, it is likely that adjustments to the estimated liabilities will be necessary as additional information becomes available. Short-term environmental liabilities and settlements are recorded in accrued expenses and other current liabilities in the accompanying consolidated balance sheets and totaled $0.5 million at April 1, 2023 and $0.5 million at December 31, 2022. Long-term environmental liabilities are recorded in deferred credits and other liabilities in the accompanying consolidated balance sheets and totaled $11.8 million at April 1, 2023 and December 31, 2022, respectively.

Everett, Washington WADOE Action – In 2007, we were identified by the WADOE as a PLP with respect to our former manufacturing site in Everett, Washington. In 2008, we entered into an Agreed Order with the WADOE to assess historic environmental contamination and remediation feasibility at the site. As part of the order, we agreed to develop a CAP, arising from the feasibility assessment. In December 2020, we submitted to the WADOE a draft feasibility assessment with an array of remedial alternatives, which we considered substantially complete. During 2021, several comment rounds were completed as well as the identification of the Port of Everett and W&W Everett Investment LLC as additional PLPs, with respect to this matter with each PLP being jointly and severally liable for the cleanup costs. The WADOE received the final feasibility assessment on December 31, 2021, containing various remedial alternatives with its preferred remedial alternatives totaling $23.4 million. Based on this study, we have determined our range of possible outcomes to be $11.8 million to $33.4 million. On March 1, 2022, we delivered a draft CAP to the WADOE consistent with its preferred alternatives, and on May 16, 2022, we received the WADOE’s initial comments on the draft CAP. On June 13, 2022, we responded to the WADOE’s comments, and on October 19, 2022, the WADOE identified Wick Family Properties as another PLP. On December 19, 2022, the WADOE provided the draft CAP to the Company and other PLPs. After further negotiation, the final CAP will ultimately be formalized in an Agreed Order or Consent Decree with the WADOE, the Company, and the other PLPs. We have made provisions within our financial statements within the range of possible outcomes; however, the contents and cost of the final CAP and allocation of the responsibility between the identified PLPs could vary materially from our estimates.

Towanda, Pennsylvania Consent Order – In December 2020, we entered into a COA with the PaDEP to remove a pile of wood fiber waste from our site in Towanda, Pennsylvania, which we acquired in connection with our acquisition of CMI in 2012, by using it as fuel for a boiler at that site. The COA replaced a 2018 Consent Decree between PaDEP and us. Under the COA, we are required to achieve certain periodic removal objectives and ultimately remove the entire pile by August 31, 2025. There are currently $1.4 million in bonds posted in connection with these obligations. If we are unable to remove this pile by August 31, 2025, then the bonds will be forfeited, and we may be subject to penalties by PaDEP. We currently anticipate meeting all applicable removal deadlines; however, if our operations should change, additional alternatives would be evaluated to meet the prescribed removal timeline.

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Note 21. Supplemental Cash Flow Information

	Three Months Ended
(amounts in thousands)	April 1, 2023		March 26, 2022
Cash Operating Activities:
Operating leases	$	16,490	$	15,203
Interest payments on financing lease obligations	42		43
Cash paid for amounts included in the measurement of lease liabilities	$	16,532	$	15,246
Cash Investing Activities:
Purchases of securities for deferred compensation plan	$	(420)	$	—
Sale of securities for deferred compensation plan	37		—
Change in securities for deferred compensation plan	$	(383)	$	—
Non-cash Investing Activities:
Property, equipment, and intangibles purchased in accounts payable	$	4,077	$	3,868
Property, equipment, and intangibles purchased with debt	869		1,423
Customer accounts receivable converted to notes receivable	38		—
Cash Financing Activities:
Borrowings on long-term debt	96,867		233,500
Payments of long-term debt	(96,526)		(122,877)
Change in long-term debt	$	341	$	110,623
Cash paid for amounts included in the measurement of finance lease liabilities	$	484	$	495
Non-cash Financing Activities:
Shares surrendered for tax obligations for employee share-based transactions in accrued liabilities	$	16	$	2,268
Shares repurchased in accounts payable	—		2,191
Accounts payable converted to installment notes	176		1,279
Other Supplemental Cash Flow Information:
Cash taxes paid, net of refunds	$	13,785	$	16,648
Cash interest paid	7,641		3,682

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Note 22. Subsequent Events

On April 17, 2023, we entered into a share sale agreement with Aristotle Holding III Pty Limited, a subsidiary of Platinum Equity Advisors, LLC, to sell our Australasia segment for a purchase price of approximately AUD 688.0 million. The transaction is expected to close in the third quarter of 2023, subject to certain closing conditions and regulatory approvals, including approval by the Australian Foreign Investment Review Board.

The share sale agreement specifies foreign exchange conversion rates into USD for AUD 230.0 million of the sales price. The conversion rates range from 0.6726 USD to 0.6749 USD to 1.0 AUD, depending on the sale completion date. On April 18, 2023, we entered into forward contracts to sell a total of AUD 420.0 million and receive USD at exchange rates ranging from 0.6751 USD to 0.6759 USD to 1.0 AUD. These forward contracts mature in the same quarter in which we expect to close the sale of our Australasia segment.

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Item 2 - Management’s Discussion and Analysis of Financial Condition and Results of Operations

This MD&A contains forward-looking statements that involve risks and uncertainties. Please see the “Forward-Looking Statements” section above for a discussion of the uncertainties, risks and assumptions associated with these statements. This discussion should be read in conjunction with our unaudited financial statements and related notes thereto and the other disclosures contained elsewhere in this Form 10-Q, and our audited financial statements and related notes and MD&A included in our Form 10-K. The results of operations for the periods reflected herein are not necessarily indicative of results that may be expected for future periods, and our actual results may differ materially from those discussed in the forward-looking statements as a result of various factors, including but not limited to those listed under Item 1A – Risk Factors in our Form 10-K and Form 10-Q, and included elsewhere in this Form 10-Q.

This MD&A is a supplement to our unaudited financial statements and notes thereto included elsewhere in this Form 10-Q and is provided to enhance your understanding of our results of operations and financial condition. Our discussion of results of operations is presented in millions throughout the MD&A and due to rounding may not sum or calculate precisely to the totals and percentages provided in the tables. Our MD&A is organized as follows:

•Overview. This section provides a general description of our Company and reportable segments.

•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.

Company Overview

We are a leading global provider of windows, doors, wall systems, and other building products. We design, produce, and distribute an extensive range of interior and exterior doors, wood, vinyl, and aluminum windows, and related products for use in the new construction, R&R of residential homes, and, to a lesser extent, non-residential buildings.

We operate manufacturing and distribution facilities in 19 countries, located primarily in North America, Europe, and Australia. For many product lines, our manufacturing processes are vertically integrated, enhancing our range of capabilities, our ability to innovate, and our quality control as well as providing supply chain, transportation, and working capital savings.

Business Segments

Our business is organized in geographic regions to ensure integration across operations serving common end markets and customers. We have three reportable segments: North America, Europe, and Australasia. Financial information related to our business segments can be found in Note 11 - Segment Information of our financial statements included elsewhere in this Form 10-Q.

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Results of Operations

The tables in this section summarize key components of our results of operations for the periods indicated, both in U.S. dollars and as a percentage of our net revenues. Certain percentages presented in this section have been rounded to the nearest whole number. Accordingly, totals may not equal the sum of the line items in the tables below.

Comparison of the Three Months Ended April 1, 2023 to the Three Months Ended March 26, 2022

	Three Months Ended
	April 1, 2023				March 26, 2022
(amounts in thousands)			% of Net  Revenues				% of Net  Revenues
Net revenues	$	1,222,617	100.0	%	$	1,171,022		100.0	%
Cost of sales	990,549		81.0	%	967,724			82.6	%
Gross margin	232,068		19.0	%	203,298			17.4	%
Selling, general and administrative	185,507		15.2	%	192,996			16.5	%
Restructuring and asset related charges	9,266		0.8	%	1			—	%
Operating income	37,295		3.1	%	10,301			0.9	%
Interest expense, net	21,221		1.7	%	18,354			1.6	%
Other income, net	(5,272)		(0.4)	%	(7,337)			(0.6)	%
Income before taxes	21,346		1.7	%	(716)			(0.1)	%
Income tax expense	6,212		0.5	%	(188)			—	%
Net income	$	15,134	1.2	%	$	(528)		—	%

Consolidated Results

Net Revenues – Net revenues increased $51.6 million, or 4.4%, to $1,222.6 million in the three months ended April 1, 2023 from $1,171.0 million in the three months ended March 26, 2022. The increase was driven by Core Revenue growth of 7%, partially offset by a 3% adverse foreign exchange impact. Core Revenues increased due to a 10% benefit from price realization mostly related to prior year pricing actions in response to significant inflation from input costs, partially offset by reductions in volume/mix of 3%.

Gross Margin – Gross margin increased $28.8 million, or 14.2%, to $232.1 million in the three months ended April 1, 2023 from $203.3 million in the three months ended March 26, 2022. Gross margin as a percentage of net revenues was 19.0% in the three months ended April 1, 2023 and 17.4% in the three months ended March 26, 2022. The increase in gross margin percentage was due primarily to the timing differences between increased input costs and our pricing actions in our end markets.

SG&A Expense – SG&A expense decreased $7.5 million, or 3.9%, to $185.5 million in the three months ended April 1, 2023 from $193.0 million in the three months ended March 26, 2022. SG&A expense as a percentage of net revenues decreased to 15.2% in the three months ended April 1, 2023 from 16.5% in the three months ended March 26, 2022. The decrease in SG&A expense and SG&A as a percentage of net revenues was primarily due to decreased labor and variable compensation expenses driven by a reduction in headcount.

Restructuring and Asset Related Charges – Restructuring and asset related charges in the three months ended April 1, 2023 relate to transformation initiatives, cost savings, and footprint rationalization activities in our North America and Europe segments. The restructuring charges in our North America segment primarily relate to charges incurred in connection with a restructuring plan to close a manufacturing facility in Atlanta, Georgia. For more information, refer to Note 15 - Restructuring and Asset Related Charges to our unaudited consolidated financial statements included in this Form 10-Q.

Interest Expense, Net – Interest expense, net, increased $2.9 million, or 15.6%, to $21.2 million in the three months ended April 1, 2023 from $18.4 million in the three months ended March 26, 2022. The increase was primarily due to an increase to the cost of borrowing on our variable rate Term Loan Facility, partially offset by interest income from interest rate derivatives in the current period.

Other Income, Net – Other income, net decreased $2.1 million, or 28.1%, to $5.3 million in the three months ended April 1, 2023 from $7.3 million in the three months ended March 26, 2022. Other income, net in the three months ended April 1, 2023 primarily consisted of foreign currency gains of $3.5 million, the recovery of cost from interest received on impaired notes of $1.4 million, and reimbursements from insurance of $1.2 million, partially offset by pension expense of $1.8 million. Other income, net in the three months ended March 26, 2022 primarily consisted of the recovery of cost from interest received on impaired notes of $7.0

34

million and pension income of $1.4 million, partially offset by foreign currency losses of $1.7 million. Refer to Note 17 - Other Income, Net for the remaining components of other income, net.

Income Taxes – Income tax expense increased $6.4 million, to a tax expense of $6.2 million in the three months ended April 1, 2023 from a $0.2 million income tax benefit in the three months ended March 26, 2022. The effective tax rate in the three months ended April 1, 2023 was 29.1% compared to 26.3% in the three months ended March 26, 2022. The increase in income taxes was primarily due an increase in income before taxes. For more information, refer to Note 10 - Income Taxes to our unaudited consolidated financial statements included in this Form 10-Q.

Segment Results

We report our segment information in the same way management internally organizes the business in assessing performance and making decisions regarding allocation of resources in accordance with ASC 280-10 - Segment Reporting. We have three reportable segments, organized and managed principally by geographic region. Our reportable segments are North America, Europe, and Australasia. We report all other business activities in Corporate and unallocated costs. We define Adjusted EBITDA as net income (loss), adjusted for the following items: (income) loss from discontinued operations, net of tax; income tax expense (benefit); depreciation and amortization; interest expense, net; and certain special items consisting of non-recurring legal and professional expenses and settlements; restructuring and asset related charges; facility closure, consolidation, and other related costs and adjustments; M&A related costs; share-based compensation expense; non-cash foreign exchange transaction/translation (income) loss; and other special items.

Reconciliations of net income to Adjusted EBITDA for our segments’ operations are as follows:

	Three Months Ended April 1, 2023
(amounts in thousands)	North America		Europe		Australasia		Total Operating Segments		Corporate and Unallocated Costs		Total Consolidated
Net income (loss)	$	35,249	$	7,299	$	5,317	$	47,865	$	(32,731)	$	15,134
Income tax expense (benefit)	14,533		1,415		2,348		18,296		(12,084)		6,212
Depreciation and amortization	17,798		7,433		4,447		29,678		3,112		32,790
Interest expense, net	2,834		128		869		3,831		17,390		21,221
Special items:(1)
Legal and professional expenses and settlements	—		70		—		70		1,752		1,822
Restructuring and asset related charges	7,812		1,267		—		9,079		187		9,266
Facility closure, consolidation, and other related costs and adjustments	9		1,338		—		1,347		—		1,347
M&A related costs	246		—		—		246		4,304		4,550
Share-based compensation expense	960		499		259		1,718		2,665		4,383
Non-cash foreign exchange transaction/translation (income)	(185)		(1,708)		(936)		(2,829)		(237)		(3,066)
Other special items	(58)		(104)		291		129		(253)		(124)
Adjusted EBITDA	$	79,198	$	17,637	$	12,595	$	109,430	$	(15,895)	$	93,535

(1)For the definitions of the Special items listed above, refer to Note 11 - Segment Information in our unaudited consolidated financial statements included in this Form 10-Q.

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	Three Months Ended March 26, 2022
(amounts in thousands)	North America		Europe		Australasia		Total Operating Segments		Corporate and Unallocated Costs		Total Consolidated
Net income (loss)	$	38,068	$	(631)	$	2,017	$	39,454	$	(39,982)	$	(528)
Income tax expense (benefit)(1)	1,008		1,398		996		3,402		(3,590)		(188)
Depreciation and amortization	16,685		7,892		4,844		29,421		3,144		32,565
Interest expense, net	1,127		1,805		1,014		3,946		14,408		18,354
Special items:(2)
Legal and professional expenses and settlements	4		—		138		142		1,774		1,916
Restructuring and asset related charges	—		—		22		22		(21)		1
Facility closure, consolidation, and other related costs and adjustments	—		132		—		132		—		132
M&A related costs	144		—		—		144		3,126		3,270
Share-based compensation expense	2,021		874		477		3,372		6,292		9,664
Non-cash foreign exchange transaction/translation loss (income)	345		(3,648)		613		(2,690)		8,908		6,218
Other special items	7,683		6,876		251		14,810		(5,965)		8,845
Adjusted EBITDA	$	67,085	$	14,698	$	10,372	$	92,155	$	(11,906)	$	80,249

(1)Income tax expense (benefit) in Corporate and unallocated costs includes the tax impact of U.S. Operations.

(2)For the definitions of the Special items listed above, refer to Note 11 - Segment Information in our unaudited consolidated financial statements included in this Form 10-Q.

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Comparison of the Three Months Ended April 1, 2023 to the Three Months Ended March 26, 2022

	Three Months Ended
(amounts in thousands)	April 1, 2023			March 26, 2022
Net revenues from external customers							% Variance
North America	$	768,033		$	722,343		6.3	%
Europe	312,489			323,272			(3.3)	%
Australasia	142,095			125,407			13.3	%
Total Consolidated	$	1,222,617		$	1,171,022		4.4	%
Percentage of total consolidated net revenues
North America	62.8		%	61.7		%
Europe	25.6		%	27.6		%
Australasia	11.6		%	10.7		%
Total Consolidated	100.0		%	100.0		%
Adjusted EBITDA(1)
North America	$	79,198		$	67,085		18.1	%
Europe	17,637			14,698			20.0	%
Australasia	12,595			10,372			21.4	%
Corporate and unallocated costs	(15,895)			(11,906)			33.5	%
Total Consolidated	$	93,535		$	80,249		16.6	%
Adjusted EBITDA as a percentage of segment net revenues
North America	10.3		%	9.3		%
Europe	5.6		%	4.5		%
Australasia	8.9		%	8.3		%
Total Consolidated	7.7		%	6.9		%

(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 11 - Segment Information in our unaudited consolidated financial statements.

North America

Net revenues in North America increased $45.7 million, or 6.3%, to $768.0 million in the three months ended April 1, 2023 from $722.3 million in the three months ended March 26, 2022. The increase was due to an increase in Core Revenues of 7%. Core Revenues increased primarily due to a 10% benefit from price realization mostly related to prior year pricing actions in response to significant inflation from input costs, partially offset by unfavorable volume/mix of 3% driven by weakened market demand, partially offset by share gains.

Adjusted EBITDA in North America increased $12.1 million to $79.2 million, or 18.1 %, in the three months ended April 1, 2023 from $67.1 million in the three months ended March 26, 2022. The increase was primarily due to favorable price/cost, partially offset by unfavorable volume/mix and higher operating costs and other expenses. The increase in operating costs and other expenses was driven by increased pension expense and an additional week of labor compensation during the three months ended April 1, 2023 compared to the same period last year. The increase was partially offset by a reduction in our allowance for credit losses due to improved collections.

Europe

Net revenues in Europe decreased $10.8 million, or 3.3%, to $312.5 million in the three months ended April 1, 2023 from $323.3 million in the three months ended March 26, 2022. The decrease was primarily due to an adverse impact from foreign exchange of 6%, partially offset by an increase in core revenues of 3%. Core Revenues increased due to an 10% benefit from price realization mostly related to prior year pricing actions in response to significant inflation from input costs, partially offset by unfavorable volume/mix of 7% primarily due to market softness and uncertainty across the region.

Adjusted EBITDA in Europe increased $2.9 million, or 20.0%, to $17.6 million in the three months ended April 1, 2023 from $14.7 million in the three months ended March 26, 2022. The increase was primarily due to positive price/cost and favorable productivity, partially offset by unfavorable volume/mix.

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Australasia

Net revenues in Australasia increased $16.7 million, or 13.3%, to $142.1 million in the three months ended April 1, 2023 from $125.4 million in the three months ended March 26, 2022. The increase was primarily due to an increase in Core Revenues of 20%, partially offset by a negative impact from foreign exchange of 7%. Core Revenues increased due to an 9% benefit from price realization mostly related to prior year pricing actions in response to significant inflation from input costs, and positive volume/mix of 11% due to strong demand.

Adjusted EBITDA in Australasia increased $2.2 million, or 21.4%, to $12.6 million in the three months ended April 1, 2023 from $10.4 million in the three months ended March 26, 2022. The increase was primarily due to favorable price/cost and higher volume/mix, partially offset by increased operating costs primarily driven by credit losses incurred as a result of the bankruptcy of a large customer.

Corporate and unallocated costs

Corporate and unallocated costs increased in the three months ended April 1, 2023 by $4.0 million, or 33.5%, compared to the three months ended March 26, 2022, primarily due to a reduction in the recovery of cost from interest received on impaired notes and a reduction in gains on foreign exchange transactions.

Liquidity and Capital Resources

Overview

We have historically funded our operations through a combination of cash from operations, draws on our revolving credit facilities, and the issuance of non-revolving debt such as our Term Loan Facility, Senior Notes, and Senior Secured Notes. Working capital fluctuates throughout the year and is impacted by inflation, the seasonality of our sales, customer payment patterns, supply availability, and the translation of the balance sheets of our foreign operations into the U.S. dollar. Typically, working capital increases at the end of the first quarter and beginning of the second quarter in conjunction with, and in preparation for, the peak season for home construction and remodeling in our North America and Europe segments, which represent the substantial majority of our revenues, and decreases starting in the fourth quarter as inventory levels and accounts receivable decline. Inventories fluctuate for raw materials with long delivery lead times, such as steel, as we work through prior shipments and take delivery of new orders.

As of April 1, 2023, we had total liquidity (a non-GAAP measure) of $618.9 million, consisting of $202.6 million in unrestricted cash, $401.2 million available for borrowing under the ABL Facility, and AUD $22.5 million ($15.1 million) available for borrowing under the Australia Senior Secured Credit Facility, compared to total liquidity of $645.5 million as of December 31, 2022. The decrease in total liquidity was primarily due to both lower cash balances and lower availability on our ABL Facility at April 1, 2023 compared to December 31, 2022.

As of April 1, 2023, our cash balances, including $1.4 million of restricted cash, consisted of $14.6 million in the U.S. and $189.4 million in non-U.S. subsidiaries. During the fiscal year ended December 31, 2022, the Company repatriated $132.8 million from non-U.S. subsidiaries and repaid a portion of the outstanding ABL Facility. Based on our current level of operations, the seasonality of our business and anticipated growth, we believe that cash provided by operations and other sources of liquidity, including cash, cash equivalents, and availability under our revolving credit facilities, will provide adequate liquidity for ongoing operations, planned capital expenditures and other investments, and debt service requirements for at least the next twelve months.

    We may, from time to time, refinance, reprice, extend, retire, or otherwise modify our outstanding debt to lower our interest payments, reduce our debt, or otherwise improve our financial position. These actions may include repricing amendments, extensions, and/or opportunistic refinancing of debt. The amount of debt that may be refinanced, repriced, extended, retired, or otherwise modified, if any, will depend on market conditions, trading levels of our debt, our cash position, compliance with debt covenants, and other considerations.

Based on hypothetical variable rate debt that would have resulted from drawing each revolving credit facility up to the full commitment amount, a 1.0% decrease in interest rates would have reduced our interest expense by $1.8 million in the three months ended April 1, 2023. A 1.0% increase in interest rates would have increased our interest expense by $1.8 million in the same period. The impact of a hypothetical decrease would have been partially mitigated by interest rate floors that apply to certain of our debt agreements.

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Borrowings and Refinancings

In December 2021, we amended our Australia Senior Secured Credit Facility resulting in reduced borrowing fees and reinstated maintenance financial covenant ratios to pre-pandemic thresholds.

In July 2021, we refinanced our existing Term Loan Facility and ABL Facility by issuing replacement loans that aggregated to $550.0 million in principal amount under the Term Loan Facility and added $100.0 million in potential additional revolving loan capacity to our ABL Facility.

As of April 1, 2023, we were in compliance with the terms of all of our Credit Facilities and the indentures governing the Senior Notes and Senior Secured Notes.

Our results have been and will continue to be impacted by substantial changes in our net interest expense throughout the periods presented and into the future. See Note 9 - Long-Term Debt to our consolidated financial statements for additional details.

Cash Flows

The following table summarizes the changes to our cash flows for the periods presented:

	Three Months Ended
(amounts in thousands)	April 1, 2023		March 26, 2022
Cash (used in) provided by:
Operating activities	$	(656)	$	(186,867)
Investing activities	(19,032)		(9,266)
Financing activities	(99)		71,283
Effect of changes in exchange rates on cash and cash equivalents	2,910		(4,940)
Net change in cash and cash equivalents	$	(16,877)	$	(129,790)

Cash Flow from Operations

Net cash used in operating activities improved $186.2 million to $0.7 million in the three months ended April 1, 2023 compared to $186.9 million in the three months ended March 26, 2022. The decrease in cash used in operating activities was primarily due to a $186.5 million improvement in net cash used by our working capital accounts (accounts receivable, net, inventory, and accounts payable). Cash flow provided by Inventory was $93.1 million favorable compared to the three months ended March 26, 2022, primarily driven by demand planning that drove lower inventory days on hand, which mitigated inflation on raw materials. Cash flow used in Accounts receivable, net of $57.5 million was favorable in the three months ended April 1, 2023 compared to the three months ended March 26, 2022, which was primarily due to improved days sales outstanding, partially offset by an increase in sales. Cash flow provided by Accounts payable was $35.9 million favorable compared to the three months ended March 26, 2022, which was primarily due to inflation on purchases, partially offset by demand planning that drove moderated purchasing.

Cash Flow from Investing Activities

Net cash used in investing activities increased $9.8 million to $19.0 million in the three months ended April 1, 2023 compared to $9.3 million in the three months ended March 26, 2022, primarily due to an increase in capital expenditures of $7.2 million, and a decrease in cash received from the recovery of cost from interest received on impaired notes of $5.6 million, partially offset by cash received from insurance proceeds related to a property claim of $3.2 million.

Cash Flow from Financing Activities

Net cash used in financing activities decreased to a $0.1 million use of cash in the three months ended April 1, 2023 compared to a $71.3 million source of cash in the three months ended March 26, 2022, primarily due to a decrease in net borrowings of $110.6 million, partially offset by the non-recurrence of repurchases of our Common Stock of $40.2 million in the three months ended March 26, 2022.

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Critical Accounting Policies and Estimates

Our MD&A is based upon our consolidated financial statements, which have been prepared in accordance with GAAP. The preparation of these consolidated financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an ongoing basis, we evaluate our estimates. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which may differ from these estimates.

    Our significant accounting policies are described in Note 1 - Summary of Significant Accounting Policies to the consolidated financial statements presented in our 10-K. Our critical accounting policies and estimates are described in Management’s Discussion and Analysis of Financial Condition and Results of Operations in the Form 10-K. Our significant and critical accounting policies have not changed significantly since our Form 10-K was filed.

Holding Company Status

We are a holding company that conducts all of our operations through subsidiaries, and we rely on dividends or advances from our subsidiaries to fund the holding company. The majority of our operating income is derived from JWI, our main operating subsidiary. The ability of our subsidiaries to pay dividends to us is subject to applicable local law and may be limited due to the terms of other contractual arrangements, including our Credit Facilities, Senior Notes, and Senior Secured Notes.

The Australia Senior Secured Credit Facility also contains restrictions on dividends that limit the amount of cash that the obligors under these facilities can distribute to JWI. Obligors under the Australia Senior Secured Credit Facility may pay dividends only to the extent they do not exceed 80% of after tax net profits (with a one-year carryforward of unused amounts) and only while no default is continuing under such agreement. For further information regarding the Australia Senior Secured Credit Facility, see Note 9 - Long-Term Debt in our consolidated financial statements.

The amount of our consolidated net assets that were available to be distributed under our credit facilities as of April 1, 2023 was $819.9 million.

Item 3 - Quantitative and Qualitative Disclosures About Market Risk

    We are exposed to various types of market risks, including the effects of adverse fluctuations in foreign currency exchange rates, changes in interest rates, and movements in commodity prices for products we use in our manufacturing. To reduce our exposure to these risks, we maintain risk management controls and policies to monitor these risks and take appropriate actions to attempt to mitigate such forms of market risk. Our market risks have not changed significantly from those disclosed in the Form 10-K.

Item 4 - Controls and Procedures

Disclosure Controls and Procedures

    The Company maintains disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), which are designed to ensure that information required to be disclosed by the Company in reports that it files or submits under the Exchange Act, including this Report, are recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms. These disclosure controls and procedures include controls and procedures designed to ensure that information required to be disclosed by the Company under the Exchange Act is accumulated and communicated to the Company’s management, including its principal executive officer (“CEO”) and principal financial officer (“CFO”), as appropriate to allow timely decisions regarding required disclosure.

The Company’s management, including the Company’s CEO and CFO, conducted an evaluation of the effectiveness of the Company’s disclosure controls and procedures as of the end of the period covered by this Report and, based on that evaluation, the CEO and CFO concluded that the Company’s disclosure controls and procedures were effective as of April 1, 2023.

Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during the Company’s most recently completed quarter ended April 1, 2023 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

PART II - OTHER INFORMATION

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Item 1 - Legal Proceedings

Information relating to this item is included within Note 20 - Commitments and Contingencies of our unaudited financial statements included elsewhere in this Form 10-Q.

Item 1A - Risk Factors

    There have been no updates to the risk factors previously disclosed in our Annual Report on Form 10-K included in Part I Item 1A - Risk Factors for the year ended December 31, 2022.

Item 5 - Other Information

None.

Item 6 - Exhibits

Exhibit No.		Exhibit Description	Form	File No.	Exhibit	Filing Date
3.1		Second Amended and Restated Certificate of Incorporation of JELD-WEN Holding, Inc.	8-K	001-38000	3.1	May 4, 2022
3.2		Third Amended and Restated Bylaws of JELD-WEN Holding, Inc.	8-K	001-38000	3.2	May 4, 2022
31.1*		Certification of Principal Executive Officer Pursuant to Rule 13a-14(a).
31.2*		Certification of Principal Financial Officer Pursuant to Rule 13a-14(a).
32.1*		Certification of Principal Executive Officer and Principal Financial Officer Pursuant to 18 U.S.C. Section 1350.
101.INS*		XBRL Instance Document-the instance document does not appear in this Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH*		Inline XBRL Taxonomy Extension Schema Document.
101.CAL*		Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF*		Inline XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB*		Inline XBRL Taxonomy Extension Label Linkbase Document.
101.PRE*		Inline XBRL Taxonomy Extension Presentation Linkbase Document.
104*		Cover page Interactive Data file (formatted as Inline XBRL and contained in Exhibit 101).
*	Filed herewith

41

SIGNATURE

    Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

JELD-WEN HOLDING, INC.
(Registrant)
By:	/s/ Julie Albrecht
	Julie Albrecht
	Executive Vice President and Chief Financial Officer

Date: May 9, 2023

42

EX-31.1

Exhibit 31.1

CERTIFICATION OF PERIODIC REPORT UNDER SECTION 302 OF

THE SARBANES-OXLEY ACT OF 2002

I, William J. Christensen, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q for the fiscal period ended April 1, 2023 of JELD-WEN Holding, Inc.;

2.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;

3.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;

4.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:

(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;

(b)     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;

(c)    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

(d)     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

5.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):

(a)     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

(b)     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.

Date: May 9, 2023

/s/ William J. Christensen

William J. Christensen

Chief Executive Officer

(Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION OF PERIODIC REPORT UNDER SECTION 302 OF

THE SARBANES-OXLEY ACT OF 2002

I, Julie Albrecht, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q for the fiscal period ended April 1, 2023 of JELD-WEN Holding, Inc.;

2.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;

3.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;

4.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:

(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;

(b)     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

(c)    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

(d)    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

5.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):

(a)     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

(b)     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.

Date: May 9, 2023

/s/ Julie Albrecht

Julie Albrecht

Executive Vice President and Chief Financial Officer (Principal Financial Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

Pursuant to 18 U.S.C. §1350, we, the undersigned officers of JELD-WEN Holding, Inc. (the “Company”), do hereby certify that the Company's Quarterly Report on Form 10-Q for the fiscal period ended April 1, 2023 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: May 9, 2023

      /s/ William J. Christensen
William J. Christensen
Chief Executive Officer

(Principal Executive Officer)

      /s/ Julie Albrecht     
Julie Albrecht

Executive Vice President and Chief Financial Officer (Principal Financial Officer)

The foregoing certification is being furnished solely pursuant to 18 U.S.C. §1350 and is not being filed as part of the Report or as a separate disclosure document.

XML

Cover - shares	3 Months Ended
	Apr. 01, 2023	May 04, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Apr. 01, 2023
Document Transition Report	false
Entity File Number	001-38000
Entity Registrant Name	JELD-WEN Holding, Inc.
Entity Incorporation, State	DE
Entity Tax Identification Number	93-1273278
Entity Address, Street Name	2645 Silver Crescent Drive
Entity Address, City	Charlotte
Entity Address, State	NC
Entity Address, Postal Zip Code	28273
City Area Code	704
Local Phone Number	378-5700
Title of each class	Common Stock (par value $0.01 per share)
Trading Symbol	JELD
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		84,971,801
Entity Central Index Key	0001674335
Amendment Flag	false
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--12-31

XML

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2023	Mar. 26, 2022
Income Statement [Abstract]
Net revenues	$ 1,222,617	$ 1,171,022
Cost of sales	990,549	967,724
Gross margin	232,068	203,298
Selling, general and administrative	185,507	192,996
Restructuring and asset related charges (Note 15)	9,266	1
Operating income	37,295	10,301
Interest expense, net	21,221	18,354
Other income, net (Note 17)	(5,272)	(7,337)
Income (loss) before taxes	21,346	(716)
Income tax (benefit) (Note 10)	6,212	(188)
Net income (loss)	$ 15,134	$ (528)
Weighted average common shares outstanding (Note 13):
Basic (in shares)	84,598,945	89,802,974
Diluted (in shares)	85,149,088	89,802,974
Net income (loss) per share
Basic (usd per share)	$ 0.18	$ (0.01)
Diluted (usd per share)	$ 0.18	$ (0.01)

XML

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2023	Mar. 26, 2022
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 15,134	$ (528)
Other comprehensive income, net of tax:
Foreign currency translation adjustments, net of tax expense (benefit) of $580, and $(10), respectively	8,173	(4,033)
Interest rate hedge adjustments, net of tax (benefit) expense of $(1,049) and $2,304, respectively	(3,085)	6,786
Defined benefit pension plans, net of tax expense of $23 and $150, respectively	62	401
Total other comprehensive income, net of tax	5,150	3,154
Comprehensive income	$ 20,284	$ 2,626

XML

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2023	Mar. 26, 2022
Statement of Comprehensive Income [Abstract]
Foreign currency translation adjustments, tax expense (benefit)	$ 580	$ (10)
Interest rate hedge adjustments, tax expense (benefit)	(1,049)	2,304
Defined benefit pension plans, tax expense	$ 23	$ 150

XML

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Apr. 01, 2023	Dec. 31, 2022
Current assets
Cash and cash equivalents	$ 202,552	$ 219,405
Restricted cash	1,439	1,463
Accounts receivable, net (Note 2)	702,406	603,748
Inventories (Note 3)	637,803	666,455
Other current assets	80,313	78,787
Assets held for sale (Note 16)	128,534	125,748
Total current assets	1,753,047	1,695,606
Property and equipment, net (Note 4)	758,142	762,486
Deferred tax assets	200,830	195,180
Goodwill (Note 5)	463,603	460,505
Intangible assets, net (Note 6)	186,731	192,105
Operating lease assets, net	166,887	167,880
Other assets	31,282	27,599
Total assets	3,560,522	3,501,361
Current liabilities
Accounts payable	348,410	320,682
Accrued payroll and benefits	131,846	133,637
Accrued expenses and other current liabilities (Note 7)	294,515	291,876
Current maturities of long-term debt (Note 9)	29,109	34,391
Liabilities held for sale (Note 16)	6,687	6,040
Total current liabilities	810,567	786,626
Long-term debt (Note 9)	1,721,241	1,713,238
Unfunded pension liability	38,315	35,505
Operating lease liability	133,046	135,822
Deferred credits and other liabilities	100,898	97,898
Deferred tax liabilities	8,696	8,724
Total liabilities	2,812,763	2,777,813
Commitments and contingencies (Note 20)
Shareholders’ equity
Preferred Stock, par value $0.01 per share, 90,000,000 shares authorized; no shares issued and outstanding	0	0
Common Stock: 900,000,000 shares authorized, par value $0.01 per share, 84,916,876 and 84,347,712 shares issued and outstanding as of April 1, 2023 and December 31, 2022, respectively.	849	843
Additional paid-in capital	738,774	734,853
Retained earnings	145,620	130,486
Accumulated other comprehensive loss	(137,484)	(142,634)
Total shareholders’ equity	747,759	723,548
Total liabilities and shareholders’ equity	$ 3,560,522	$ 3,501,361

XML

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Apr. 01, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Preferred stock, par value (usd per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	90,000,000	90,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, shares authorized (in shares)	900,000,000	900,000,000
Common stock, par value (usd per share)	$ 0.01	$ 0.01
Common stock, shares issued (in shares)	84,916,876	84,347,712
Common stock, shares outstanding (in shares)	84,916,876	84,347,712

XML

CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands	Total	Preferred stock	Common stock	Additional paid-in capital	Other additional paid in capital	Other additional paid in capital Employee stock notes	Retained earnings	Accumulated other comprehensive income (loss)	Foreign currency adjustments	Unrealized gain on interest rate hedges	Net actuarial pension gain
Balance at beginning of period (in shares) at Dec. 31, 2021		0
Balance at beginning of period at Dec. 31, 2021		$ 0	$ 902		$ 720,124	$ (673)	$ 215,611	$ (93,746)
Balance at beginning of period (in shares) at Dec. 31, 2021			90,193,550
Increase (Decrease) in Stockholders' Equity
Shares issued for exercise/vesting of share-based compensation awards (in shares)			824,074
Shares issued for exercise/vesting of share-based compensation awards			$ 8		979
Shares repurchased (in shares)			(1,777,266)
Shares repurchased			$ (18)				(41,323)
Shares surrendered for tax obligations for employee share-based transactions (in shares)			(103,904)
Shares surrendered for tax obligations for employee share-based transactions			$ (1)		(2,378)
Amortization of share-based compensation					9,664
Net income (loss)	$ (528)						(528)
Foreign currency adjustments	(4,033)								$ (4,033)
Unrealized (loss) gain on interest rate hedges										$ 6,786
Net actuarial pension gain	401										$ 401
Balance at end of period at Mar. 26, 2022	$ 811,775		$ 891	$ 727,716	728,389	(673)	173,760	(90,592)
Balance at period end (in shares) at Mar. 26, 2022			89,136,454
Balance at beginning of period (in shares) at Dec. 31, 2022	0	0
Balance at beginning of period at Dec. 31, 2022	$ 723,548	$ 0	$ 843		735,526	(673)	130,486	(142,634)
Balance at beginning of period (in shares) at Dec. 31, 2022	84,347,712		84,347,712
Increase (Decrease) in Stockholders' Equity
Shares issued for exercise/vesting of share-based compensation awards (in shares)			604,028
Shares issued for exercise/vesting of share-based compensation awards			$ 7
Shares surrendered for tax obligations for employee share-based transactions (in shares)			(34,864)
Shares surrendered for tax obligations for employee share-based transactions			$ (1)		(462)
Amortization of share-based compensation					4,383
Net income (loss)	$ 15,134						15,134
Foreign currency adjustments	8,173								$ 8,173
Unrealized (loss) gain on interest rate hedges										$ (3,085)
Net actuarial pension gain	$ 62										$ 62
Balance at period end (in shares) at Apr. 01, 2023	0
Balance at end of period at Apr. 01, 2023	$ 747,759		$ 849	$ 738,774	$ 739,447	$ (673)	$ 145,620	$ (137,484)
Balance at period end (in shares) at Apr. 01, 2023	84,916,876		84,916,876

XML

CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - $ / shares	Apr. 01, 2023	Dec. 31, 2022	Mar. 26, 2022	Dec. 31, 2021
Statement of Stockholders' Equity [Abstract]
Preferred stock, par value (usd per share)	$ 0.01	$ 0.01	$ 0.01	$ 0.01
Common stock, par value (usd per share)	$ 0.01	$ 0.01	$ 0.01	$ 0.01

XML

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2023	Mar. 26, 2022
OPERATING ACTIVITIES
Net income (loss)	$ 15,134	$ (528)
Adjustments to reconcile net income (loss) to cash used in operating activities:
Depreciation and amortization	32,790	32,565
Deferred income taxes	(4,268)	(2,449)
Net (gain) loss on disposition of assets	(90)	134
Adjustment to carrying value of assets	2,171	0
Amortization of deferred financing costs	786	726
Stock-based compensation	4,383	9,664
Amortization of U.S. pension expense	125	350
Recovery of cost from interest received on impaired notes	(1,394)	(7,027)
Other items, net	(4,345)	2,211
Net change in operating assets and liabilities, net of effect of acquisitions:
Accounts receivable	(100,229)	(157,703)
Inventories	31,779	(61,285)
Other assets	(1,775)	(34,669)
Accounts payable and accrued expenses	27,572	45,531
Change in short term and long-term tax liabilities	(3,295)	(14,387)
Net cash used in operating activities	(656)	(186,867)
INVESTING ACTIVITIES
Purchases of property and equipment	(21,432)	(15,382)
Proceeds from sale of property and equipment	398	39
Purchase of intangible assets	(2,179)	(998)
Recovery of cost from interest received on impaired notes	1,394	7,027
Cash received for notes receivable	5	48
Cash received from insurance proceeds	3,165	0
Change in securities for deferred compensation plan	(383)	0
Net cash used in investing activities	(19,032)	(9,266)
FINANCING ACTIVITIES
Change in long-term debt	341	110,623
Common stock issued for exercise of options	7	987
Common stock repurchased	0	(40,216)
Payments to tax authorities for employee share-based compensation	(447)	(111)
Net cash (used in) provided by financing activities	(99)	71,283
Effect of foreign currency exchange rates on cash	2,910	(4,940)
Net decrease in cash and cash equivalents	(16,877)	(129,790)
Cash, cash equivalents and restricted cash, beginning	220,868	396,890
Cash, cash equivalents and restricted cash, ending	$ 203,991	$ 267,100

XML

Description of Company and Summary of Significant Accounting Policies

3 Months Ended

Apr. 01, 2023

Accounting Policies [Abstract]

Description of Company and Summary of Significant Accounting Policies

Description of Company and Summary of Significant Accounting Policies

Nature of Business – JELD-WEN Holding, Inc., along with its subsidiaries, is a vertically integrated global manufacturer and distributor of windows, doors, and other building products that derives substantially all its revenues from the sale of its door and window products. Unless otherwise specified or the context otherwise requires, all references in these notes to “JELD-WEN,” “we,” “us,” “our,” or the “Company” are to JELD-WEN Holding, Inc. and its subsidiaries.

We have facilities located in the U.S., Canada, Europe, Australia, Asia, and Mexico. Our products are marketed primarily under the JELD-WEN brand name in the U.S. and Canada and under JELD-WEN and a variety of acquired brand names in Europe, Australia, and Asia.

Our revenues are affected by the level of new housing starts and remodeling activity in each of our markets. Our sales typically follow seasonal new construction and repair and remodeling industry patterns. The peak season for home construction and remodeling in many of our markets generally corresponds with the second and third calendar quarters, and therefore, sales volume is typically higher during those quarters. Our first and fourth quarter sales volumes are generally lower due to reduced repair and remodeling activity and reduced activity in the building and construction industry as a result of colder and more inclement weather in certain areas of our geographic end markets.

Basis of Presentation – The accompanying unaudited consolidated financial statements as of April 1, 2023 and for the three months ended April 1, 2023 and March 26, 2022, respectively, have been prepared in accordance with GAAP for interim financial information and pursuant to the rules and regulations of the SEC. In the opinion of management, the unaudited consolidated financial statements have been prepared on the same basis as the audited financial statements and include all adjustments, consisting only of normal recurring adjustments, necessary for the fair statement of the Company’s financial position for the periods presented. The results for the three months ended April 1, 2023 are not necessarily indicative of the results to be expected for the year ending December 31, 2023, or any other period. The accompanying consolidated balance sheet as of December 31, 2022 was derived from audited financial statements included in our Annual Report on Form 10-K. The accompanying consolidated financial statements do not include all of the information and footnotes required by GAAP for annual financial statements. Accordingly, they should be read in conjunction with the audited financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2022.

All U.S. dollar and other currency amounts, except per share amounts, are presented in thousands unless otherwise noted.

Fiscal Year – We operate on a fiscal calendar year, and each interim quarter is comprised of two 4-week periods and one 5-week period, with each week ending on a Saturday. Our fiscal year always begins on January 1 and ends on December 31. As a result, our first and fourth quarters may have more or fewer days included than a traditional 91-day fiscal quarter.

Use of Estimates – The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates, assumptions, and allocations that affect amounts reported in the consolidated financial statements and related notes. Significant items that are subject to such estimates and assumptions include, but are not limited to, long-lived assets including goodwill and other intangible assets, employee benefit obligations, income tax uncertainties, contingent assets and liabilities, provisions for bad debt, inventory, warranty liabilities, legal claims, valuation of derivatives, environmental remediation, and claims relating to self-insurance. Actual results could differ due to the uncertainty inherent in the nature of these estimates.

COVID-19 – The CARES Act in the U.S. and similar legislation in other jurisdictions includes measures that assisted companies in responding to the COVID-19 pandemic. These measures consisted primarily of cash assistance to support employment levels and deferment of remittance of certain non-income tax expense payments. The most significant impact was from the CARES Act in the U.S., which included a provision that allowed employers to defer the remittance of the employer portion of the social security tax relating to 2020. The deferred employment payment must be paid over two years. Original payment due dates were in 2021 and 2022, however updated guidance provided by the Internal Revenue Service in December 2021 allowed for these payments to be made during 2022 and 2023. The Company deferred $20.9 million of the employer portion of social security tax in 2020, of which $9.9 million was paid in the first quarter of 2022 and the remaining $11.0 million was paid in the fourth quarter of 2022.

Recent Accounting Standards – In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions affected by the discontinuation of LIBOR or by another reference rate expected to be discontinued. In January 2021, the FASB issued

ASU No. 2021-01, Reference Rate Reform (Topic 848): Scope, to clarify the scope of ASU No. 2020-04. In December 2022, the FASB issued ASU No. 2022-06, Deferral of the Sunset Date of Topic 848, which extended the relief provisions under Topic 848 through December 31, 2024. In May 2020, we elected the expedient within ASC 848 which allows us to assume that our hedged interest payments are probable of occurring regardless of any expected modifications in their terms related to reference rate reform. In addition, ASC 848 allows for the option to change the method of assessing effectiveness upon a change in critical terms of the derivative or the hedged transactions and upon the end of relief under ASC 848. At this time, we have elected to continue the method of assessing effectiveness as documented in the original hedge documentation and apply the practical expedients related to probability to assume that the reference rate on the hypothetical derivative matches the reference rate on the hedging instrument. We plan to evaluate the remaining expedients for adoption, as applicable, when contracts are modified. We currently do not expect this guidance to have a material impact on our consolidated financial statements. Refer to Note 18 - Derivative Financial Instruments for additional disclosure information relating to our hedging activity.

We have considered the applicability and impact of all ASUs. We have assessed ASUs not listed above and have determined that they were either not applicable or were not expected to have a material impact on our financial statements.

XML

Accounts Receivable	3 Months Ended
	Apr. 01, 2023
Receivables [Abstract]
Accounts Receivable	Accounts ReceivableWe sell our manufactured products to a large number of customers, primarily in the residential housing construction and remodel sectors, broadly dispersed across many domestic and foreign geographic regions. We assess the credit risk relating to our accounts receivable based on quantitative and qualitative factors, including historical credit collections within each region where we have operations. We perform ongoing credit evaluations of our customers to minimize credit risk. We do not usually require collateral for accounts receivable, but do require advance payment, guarantees, a security interest in the products sold to a customer, and/or letters of credit in certain situations. Customer accounts receivable converted to notes receivable are collateralized by inventory or other collateral. At April 1, 2023 and December 31, 2022, we had an allowance for credit losses of $18.1 million and $16.3 million, respectively. The increase in the allowance for credit losses in the three months ended April 1, 2023 is due to the credit losses incurred from the bankruptcy of a large Australasian customer, partially offset by a reduction in our allowance for credit losses in our North America segment due to improved collections.

XML

Inventories

3 Months Ended

Apr. 01, 2023

Inventory Disclosure [Abstract]

Inventories

Inventories

Inventories are stated at the lower of cost or net realizable value. Finished goods and work-in-process inventories include material, labor, and manufacturing overhead costs.

(amounts in thousands)	April 1, 2023		December 31, 2022
Raw materials	$	475,610	$	511,681
Work in process	29,921		31,310
Finished goods	132,272		123,464
Total inventories	$	637,803	$	666,455

XML

Property and Equipment, Net

3 Months Ended

Apr. 01, 2023

Property, Plant and Equipment [Abstract]

Property and Equipment, Net

Property and Equipment, Net

(amounts in thousands)	April 1, 2023		December 31, 2022
Property and equipment	$	2,151,549	$	2,135,848
Accumulated depreciation	(1,393,407)		(1,373,362)
Total property and equipment, net	$	758,142	$	762,486

We recorded accelerated depreciation of our plant and equipment of $2.2 million during the three months ended April 1, 2023 within restructuring and asset related charges in the accompanying consolidated statements of operations. No accelerated depreciation was recorded during the three months ended March 26, 2022.

The effect on our carrying value of property and equipment due to currency translations for foreign property and equipment, net, was an increase of $3.9 million as of April 1, 2023 compared to December 31, 2022, respectively.

Depreciation expense was recorded as follows:

	Three Months Ended
(amounts in thousands)	April 1, 2023		March 26, 2022
Cost of sales	$	22,916	$	22,512
Selling, general and administrative	1,964		1,708
Total depreciation expense	$	24,880	$	24,220

XML

Goodwill

3 Months Ended

Apr. 01, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

Goodwill

The following table summarizes the changes in goodwill by reportable segment:

(amounts in thousands)	North America		Europe		Australasia		Total Reportable Segments
Balance as of December 31, 2022	$	182,269	$	199,684	$	78,552	$	460,505
Currency translation	11		3,889		(802)		3,098
Balance as of April 1, 2023	$	182,280	$	203,573	$	77,750	$	463,603

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Intangible Assets, Net

3 Months Ended

Apr. 01, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets, Net

Intangible Assets, Net

The cost and accumulated amortization values of our intangible assets were as follows:

	April 1, 2023
(amounts in thousands)	Cost		Accumulated Amortization		Net Book Value
Customer relationships and agreements	$	138,964	$	(83,241)	$	55,723
Software	121,305		(46,461)		74,844
Trademarks and trade names	53,420		(13,153)		40,267
Patents, licenses and rights	42,419		(26,522)		15,897
Total amortizable intangibles	$	356,108	$	(169,377)	$	186,731

	December 31, 2022
(amounts in thousands)	Cost		Accumulated Amortization		Net Book Value
Customer relationships and agreements	$	137,914	$	(79,761)	$	58,153
Software	119,239		(43,208)		76,031
Trademarks and trade names	53,481		(12,563)		40,918
Patents, licenses and rights	42,821		(25,818)		17,003
Total amortizable intangibles	$	353,455	$	(161,350)	$	192,105

The effect on our carrying value of intangible assets due to currency translations for foreign intangible assets as of April 1, 2023 compared to December 31, 2022 was nominal.

Intangible assets that become fully amortized are removed from the accounts in the period that they become fully amortized. Amortization expense was recorded as follows:

	Three Months Ended
(amounts in thousands)	April 1, 2023		March 26, 2022
Amortization expense	$	7,487	$	8,145

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Accrued Expenses and Other Current Liabilities

3 Months Ended

Apr. 01, 2023

Payables and Accruals [Abstract]

Accrued Expenses and Other Current Liabilities

Accrued Expenses and Other Current Liabilities

(amounts in thousands)	April 1, 2023		December 31, 2022
Accrued sales and advertising rebates	$	76,652	$	93,337
Current portion of operating lease liability	43,546		42,494
Non-income related taxes	31,076		25,700
Accrued expenses	24,032		18,423
Current portion of warranty liability (Note 8)	23,114		23,079
Deferred revenue and customer deposits	23,104		24,753
Accrued freight	18,382		17,398
Accrued interest payable	17,508		4,038
Current portion of accrued claim costs relating to self-insurance programs	17,375		17,932
Accrued income taxes payable	9,900		12,848
Current portion of restructuring accrual (Note 15)	3,985		5,038
Legal claims provision	3,477		3,490
Current portion of derivative liability (Note 18)	2,364		3,346
Total accrued expenses and other current liabilities	$	294,515	$	291,876

The legal claims provision relates primarily to contingencies associated with the ongoing legal matters disclosed in Note 20 - Commitments and Contingencies.

The accrued sales and advertising rebates, accrued interest payable, accrued freight, and non-income related taxes can fluctuate significantly period-over-period due to timing of payments.

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Warranty Liability

3 Months Ended

Apr. 01, 2023

Product Warranties Disclosures [Abstract]

Warranty Liability

Warranty LiabilityWarranty terms vary from one year to lifetime on certain window and door components. Warranties are normally limited to servicing or replacing defective components for the original customer. Product defects arising within six months of sale are classified as manufacturing defects and are not included in the current period expense below. Some warranties are transferable to subsequent owners and are either limited to 10 years from the date of manufacture or require pro-rata payments from the customer. A provision for estimated warranty costs is recorded at the time of sale based on historical experience and is periodically adjusted to reflect actual experience.

An analysis of our warranty liability is as follows:

(amounts in thousands)	April 1, 2023		March 26, 2022
Balance as of January 1	$	54,337	$	54,860
Current period charges	7,240		7,151
Experience adjustments	539		684
Payments	(7,864)		(7,742)
Currency translation	108		(4)
Balance at period end	54,360		54,949
Current portion	(23,114)		(23,387)
Long-term portion	$	31,246	$	31,562

The most significant component of our warranty liability as of April 1, 2023 and March 26, 2022 is in the North America segment. As of April 1, 2023, the warranty liability in the North America segment totaled $46.2 million after discounting future estimated cash flows at rates between 0.53% and 3%. Without discounting, the liability would have been higher by approximately $3.0 million.

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Long-Term Debt

3 Months Ended

Apr. 01, 2023

Debt Disclosure [Abstract]

Long-Term Debt

Long-Term Debt

Our long-term debt, net of original issue discount and unamortized debt issuance costs, consisted of the following:

	April 1, 2023	April 1, 2023		December 31, 2022
(amounts in thousands)	Interest Rate
Senior Secured Notes and Senior Notes	4.63% - 6.25%	$	1,050,000	$	1,050,000
Term loans	1.30% - 7.09%	540,572		541,970
Revolving credit facilities	5.93% - 8.25%	63,000		55,000
Finance leases and other financing arrangements	1.25% - 7.16%	84,995		89,784
Mortgage notes	4.62% - 5.12%	22,624		22,472
Total Debt		1,761,191		1,759,226
Unamortized debt issuance costs and original issue discounts		(10,841)		(11,597)
Current maturities of long-term debt		(29,109)		(34,391)
Long-term debt		$	1,721,241	$	1,713,238

Summaries of our significant changes to outstanding debt agreements as of April 1, 2023 are as follows:

Senior Secured Notes and Senior Notes

In May 2020, we issued $250.0 million of Senior Secured Notes bearing interest at 6.25% and maturing in May 2025 in a private placement for resale to qualified institutional buyers pursuant to Rule 144A under the Securities Act. The proceeds were net of fees and expenses associated with debt issuance, including an underwriting fee of 1.25%. Interest is payable semiannually, in arrears, each May and November.

In December 2017, we issued $800.0 million of unsecured Senior Notes in two tranches: $400.0 million bearing interest at 4.63% and maturing in December 2025, and $400.0 million bearing interest at 4.88% and maturing in December 2027 in a private placement for resale to qualified institutional buyers pursuant to Rule 144A under the Securities Act.

Term Loans

U.S. Facility - Initially executed in October 2014, we amended the Term Loan Facility in July 2021 to, among other things, extend the maturity date from December 2024 to July 2028 and provide additional covenant flexibility. Pursuant to the amendment, certain existing and new lenders advanced $550.0 million of replacement term loans, the proceeds of which were used to prepay in full the amount outstanding under the previously existing term loans. The replacement term loans bear interest at LIBOR (subject to a floor of 0.00%) plus a margin of 2.00% to 2.25% depending on JWI’s corporate credit ratings. In addition, the amendment also modifies certain other terms and provisions of the Term Loan Facility, and add language to address the replacement of LIBOR with a SOFR basis upon the June 30, 2023 cessation of the publication of LIBOR. Voluntary prepayments of the replacement term loans are permitted at any time, in certain minimum principal

amounts, but were subject to a 1.00% premium during the first six months. The amendment requires 0.25% of the initial principal to be repaid quarterly until maturity. As a result of this amendment, we recognized debt extinguishment costs of $1.3 million, which included $1.0 million of unamortized debt issuance costs and original discount fees. As of the date of the amendment, the outstanding principal balance, net of original issue discount, was $548.6 million. As of April 1, 2023, the outstanding principal balance, net of original issue discount, was $539.3 million.

In May 2020, we entered into interest rate swap agreements with a weighted average fixed rate of 0.395% paid against one-month LIBOR floored at 0.00% with outstanding notional amounts aggregating to $370.0 million corresponding to that amount of the debt outstanding under our Term Loan Facility. Absent any action, interest rate hedges will convert to a SOFR basis after June 30, 2023, although the Company plans to proactively amend these hedges to a SOFR basis prior to that date. The interest rate swap agreements are designated as cash flow hedges of a portion of the interest obligations on our Term Loan Facility borrowings and mature in December 2023. See Note 18 - Derivative Financial Instruments for additional information on our derivative assets and liabilities.

Revolving Credit Facilities

ABL Facility - In July 2021, we amended the ABL Facility to, among other things, extend the maturity date from December 2022 to July 2026, increase the aggregate commitment to $500.0 million, provide additional covenant flexibility, conform certain terms and provisions to the Term Loan Facility, and amend the interest rate grid applicable to the loans thereunder by adding language to address the replacement of LIBOR with a SOFR basis upon the June 30, 2023 cessation of the publication of LIBOR. Pursuant to the amendment, the amount allocated to U.S. borrowers was increased to $465.0 million. The amount allocated to Canadian borrowers was maintained at $35.0 million. Borrowings under the ABL Facility bear, at the borrower’s option, interest at either a base rate plus a margin of 0.25% to 0.50% depending on excess availability or LIBOR (subject to a floor of 0.00%) plus a margin of 1.25% to 1.50% depending on excess availability. As of April 1, 2023, we had $63.0 million of outstanding borrowings, $31.4 million in letters of credit and $401.2 million available under the ABL Facility.

Australia Senior Secured Credit Facility - In June 2019, we amended the Australia Senior Secured Credit Facility, reallocating availability from the Australia Term Loan Facility and collapsing the floating rate revolving loan facility into an AUD 35.0 million interchangeable facility to be used for guarantees, asset financing, and loans of twelve months or less. The interchangeable facility does not have a set maturity date but is instead subject to an annual review each June.

In May 2020, we amended the Australia Senior Secured Credit Facility to relax certain financial covenants. The amended non-term loan portion of the facility bore line fees of 0.70%, compared to line fees of 0.50% under the previous amendment. The amendment also provided for a supplemental AUD 30.0 million floating rate revolving loan facility.

In December 2021, we amended the Australia Senior Secured Credit Facility to reinstate maintenance financial covenant ratios to pre-pandemic thresholds and renewed the facility through its next annual review. The amended facility includes line fees of 0.50%, compared to line fees of 0.70% under the previous amendment. As of April 1, 2023, we had AUD 22.5 million ($15.1 million) available under this facility.

The Australia Senior Secured Credit Facility is secured by guarantees of JWA and its subsidiaries, fixed and floating charges on the assets of JWA group, and mortgages on certain real properties owned by the JWA group. The combined agreement requires that JWA maintain certain financial ratios, including a minimum consolidated interest coverage ratio and a maximum consolidated debt to EBITDA ratio. The agreement limits dividends and repayments of intercompany loans where the JWA group is the borrower and limits loans or other financial accommodations to non-obligor entities.

At April 1, 2023, we had combined borrowing availability of $416.3 million under our revolving credit facilities.

Mortgage Notes – In December 2007, we entered into thirty-year mortgage notes secured by land and buildings in Denmark with principal payments which began in 2018. As of April 1, 2023, we had DKK 154.6 million ($22.6 million) outstanding under these notes.

Finance leases and other financing arrangements – In addition to finance leases, we include insurance premium financing arrangements and loans secured by equipment in this category. As of April 1, 2023, we had $85.0 million outstanding in this category, with maturities ranging from 2023 to 2030.

As of April 1, 2023, we were in compliance with the terms of all of our credit facilities and the indentures governing the Senior Notes and Senior Secured Notes.

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Income Taxes

3 Months Ended

Apr. 01, 2023

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The effective income tax rate for continuing operations was 29.1% and 26.3% for the three months ended April 1, 2023 and March 26, 2022, respectively. In accordance with ASC 740-270, we recorded a tax expense of $6.2 million and a tax benefit of $0.2 million from operations in the three months ended April 1, 2023 and March 26, 2022, respectively, by applying our estimated annual effective tax rate to year-to-date income for includable entities during the respective periods. Our estimated annual effective tax rate for both years includes the impact of the tax on GILTI. Entities that are currently generating losses and for which there is a full valuation allowance are excluded from the worldwide effective tax rate calculation and are calculated separately.

The impact of significant discrete items is separately recognized in the quarter in which they occur. The tax expense for discrete items included in the tax provision for continuing operations for the three months ended April 1, 2023 was $1.0 million, comprised primarily of $1.2 million of tax expense attributable to share-based compensation, partially offset by $0.2 million of tax benefit attributable to uncertain tax positions related to Denmark and Germany taken in the previous years. Discrete tax items recorded in the three months ended March 26, 2022 were insignificant to the tax expense recorded in the respective period.

Under ASC 740-10, we provide for uncertain tax positions and the related interest expense by adjusting unrecognized tax benefits and accrued interest accordingly. We recognize potential interest and penalties related to unrecognized tax benefits in income tax expense. We had unrecognized tax benefits without regard to accrued interest of $31.5 million and $29.3 million as of April 1, 2023 and December 31, 2022, respectively.

The Company continually evaluates its global cash needs. As of April 1, 2023, the Company continues to make an indefinite reinvestment assertion on the future earnings of its foreign subsidiaries in excess of previously taxed earnings and no additional deferred tax expense is recorded.

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Segment Information

3 Months Ended

Apr. 01, 2023

Segment Reporting [Abstract]

Segment Information

Segment InformationWe report our segment information in the same way management internally organizes the business to assess performance and make decisions regarding allocation of resources in accordance with ASC 280-10- Segment Reporting. We have three reportable segments, organized and managed principally in geographic regions. Our reportable segments are North America, Europe, and Australasia. We report all other business activities in Corporate and unallocated costs. Factors considered in determining the three reportable segments include the nature of business activities, the management structure accountable directly to the CODM, the discrete financial information available and the information regularly reviewed by the CODM. Management reviews net revenues and Adjusted EBITDA to evaluate segment performance and allocate resources. We define Adjusted EBITDA as net income (loss), adjusted for the following items: (income) loss from discontinued operations, net of tax; income tax expense (benefit); depreciation and amortization; interest expense, net; and certain special items consisting of non-recurring legal and professional expenses and settlements; restructuring and asset related charges; facility closure, consolidation, and other related costs and adjustments; M&A related costs; share-based compensation expense; non-cash foreign exchange transaction/translation (income) loss; and other special items.

The following tables set forth certain information relating to our segments’ operations:

(amounts in thousands)	North America		Europe		Australasia		Total Operating Segments		Corporate and Unallocated Costs		Total Consolidated
Three Months Ended April 1, 2023
Total net revenues	$	768,122	$	312,621	$	145,670	$	1,226,413	$	—	$	1,226,413
Intersegment net revenues	(89)		(132)		(3,575)		(3,796)		—		(3,796)
Net revenues from external customers	$	768,033	$	312,489	$	142,095	$	1,222,617	$	—	$	1,222,617
Three Months Ended March 26, 2022
Total net revenues	$	722,571	$	323,306	$	130,433	$	1,176,310	$	—	$	1,176,310
Intersegment net revenues	(228)		(34)		(5,026)		(5,288)		—		(5,288)
Net revenues from external customers	$	722,343	$	323,272	$	125,407	$	1,171,022	$	—	$	1,171,022

(amounts in thousands)	North America		Europe		Australasia		Total Operating Segments		Corporate and Unallocated Costs		Total Consolidated
Three Months Ended April 1, 2023
Net income (loss)	$	35,249	$	7,299	$	5,317	$	47,865	$	(32,731)	$	15,134
Income tax expense (benefit)	14,533		1,415		2,348		18,296		(12,084)		6,212
Depreciation and amortization	17,798		7,433		4,447		29,678		3,112		32,790
Interest expense, net	2,834		128		869		3,831		17,390		21,221
Restructuring and asset related charges	7,812		1,267		—		9,079		187		9,266
Net other special items	972		95		(386)		681		8,231		8,912
Adjusted EBITDA	$	79,198	$	17,637	$	12,595	$	109,430	$	(15,895)	$	93,535
Three Months Ended March 26, 2022
Net income (loss)	$	38,068	$	(631)	$	2,017	$	39,454	$	(39,982)	$	(528)
Income tax expense (benefit)(1)	1,008		1,398		996		3,402		(3,590)		(188)
Depreciation and amortization	16,685		7,892		4,844		29,421		3,144		32,565
Interest expense, net	1,127		1,805		1,014		3,946		14,408		18,354
Restructuring and asset related charges	—		—		22		22		(21)		1
Net other special items	10,197		4,234		1,479		15,910		14,135		30,045
Adjusted EBITDA	$	67,085	$	14,698	$	10,372	$	92,155	$	(11,906)	$	80,249

(1)Income tax expense (benefit) in Corporate and unallocated costs includes the tax impact of US Operations in the three months ended March 26, 2022.

Reconciliations of net income to Adjusted EBITDA are as follows:

	Three Months Ended
(amounts in thousands)	April 1, 2023		March 26, 2022
Net income (loss)	$	15,134	$	(528)
Income tax expense (benefit)	6,212		(188)
Depreciation and amortization	32,790		32,565
Interest expense, net	21,221		18,354
Special items:
Legal and professional expenses and settlements(1)	1,822		1,916
Restructuring and asset related charges(2)	9,266		1
Facility closure, consolidation, and other related costs and adjustments(3)	1,347		132
M&A related costs(4)	4,550		3,270
Share-based compensation expense(5)	4,383		9,664
Non-cash foreign exchange transaction/translation (income) loss(6)	(3,066)		6,218
Other special items (7)	(124)		8,845
Adjusted EBITDA	$	93,535	$	80,249

.

(1)Legal and professional expenses and settlements primarily related to litigation and transformation initiatives.

(2)Represents severance, accelerated depreciation charges, and other expenses directly incurred as a result of restructuring events, including equipment relocation expenses.

(3)Facility closure, consolidation, and other related costs and adjustments primarily related to winding down certain facilities closed in 2022.

(4)M&A related costs consists primarily of legal and professional expenses related to the potential dispositions of Towanda and our Australasia segment.

(5)Represents non-cash equity-based compensation expense related to the issuance of share-based awards.

(6)Non-cash foreign exchange transaction/translation (income)/loss primarily consists of (gains)/losses associated with fair value adjustments of foreign currency derivatives and revaluation of intercompany balances.

(7)Other special items not core to ongoing business activity in the three months ended March 26, 2022 primarily consists of $6.9 million in expenses related to fire damage and downtime at one of our facilities in our North America segment.

To conform with current period presentation, certain amounts in prior period information have been reclassified.

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Capital Stock

3 Months Ended

Apr. 01, 2023

Equity [Abstract]

Capital Stock

Capital Stock

Preferred Stock - Our Board of Directors is authorized to issue Preferred Stock from time to time in one or more series and with such rights, privileges, and preferences as the Board of Directors shall from time to time determine. We have not issued any shares of Preferred Stock.

Common Stock - Common Stock includes the basis of shares outstanding plus amounts recorded as additional paid-in capital. Shares outstanding exclude the shares issued to the Employee Benefit Trust that are considered similar to treasury shares and total 193,941 shares at both April 1, 2023 and December 31, 2022 with a total original issuance value of $12.4 million.

We record share repurchases on their trade date and reduce shareholders’ equity and increase accounts payable. Repurchased shares are retired, and the excess of the repurchase price over the par value of the shares is charged to retained earnings.

On July 27, 2021, our Board of Directors increased our previous repurchase authorization to a total of $400.0 million with no expiration date.

On July 28, 2022, our Board of Directors authorized a new share repurchase program, replacing our previous share repurchase authorization, with an aggregate value of $200.0 million and no expiration date. As of April 1, 2023, there have been no share repurchases under this program.

We repurchased 1,777,266 shares of our Common Stock at an average price of $23.26 during the three months ended March 26, 2022. We did not repurchase shares during the three months ended April 1, 2023.

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Earnings Per Share

3 Months Ended

Apr. 01, 2023

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share

The basic and diluted income per share calculations were determined based on the following share data:

	Three Months Ended
	April 1, 2023	March 26, 2022
Weighted average outstanding shares of Common Stock basic	84,598,945	89,802,974
Restricted stock units and options to purchase Common Stock	550,143	—
Weighted average outstanding shares of Common Stock diluted	85,149,088	89,802,974

The following table provides the securities that could potentially dilute basic earnings per share in the future but were not included in the computation of diluted income per share as their inclusion would be anti-dilutive:

	Three Months Ended
	April 1, 2023	March 26, 2022
Common Stock options	1,669,638	1,668,613
Restricted stock units	782,751	1,086,958
Performance share units	192,940	390,084

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Stock Compensation

3 Months Ended

Apr. 01, 2023

Share-Based Payment Arrangement [Abstract]

Stock Compensation

Stock Compensation

The activity under our incentive plans for the periods presented are reflected in the following tables:

	Three Months Ended
	April 1, 2023			March 26, 2022
	Shares	Weighted Average Exercise Price Per Share		Shares	Weighted Average Exercise Price Per Share
Options granted	235,892	$	13.29	310,554	$	24.17
Options canceled	7,395	$	26.33	37,770	$	28.57
Options exercised	—	$	—	66,946	$	12.55
	Shares	Weighted Average Grant Date Fair Value		Shares	Weighted Average Grant Date Fair Value
RSUs granted	1,336,005	$	13.21	845,395	$	24.18
PSUs granted	292,064	$	17.36	158,587	$	29.24

Stock-based compensation expense was $4.4 million and $9.7 million for the three months ended April 1, 2023 and March 26, 2022, respectively. The three months ended April 1, 2023 had comparatively less expense than the three months ended March 26, 2022 primarily due to executive management turnover and lower outstanding performance shares in 2023. As of April 1, 2023, we had $27.7 million of total unrecognized compensation expense related to non-vested share-based compensation arrangements. This cost is expected to be recognized over the remaining weighted-average vesting period of 1.85 years.

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Restructuring and Asset Related Charges

3 Months Ended

Apr. 01, 2023

Restructuring and Related Activities [Abstract]

Restructuring and Asset Related Charges

Restructuring and Asset Related ChargesWe engage in restructuring activities focused on improving productivity and operating margins. Restructuring costs primarily relate to costs associated with workforce reductions, plant consolidations and closure, and changes to the management structure to align with our operations. Other restructuring associated costs, primarily consist of equipment relocation costs. Asset related charges consist of accelerated depreciation of assets due to changes in asset useful lives.

The following table summarizes the restructuring and asset related charges for the periods indicated:

(amounts in thousands)	North America		Europe		Australasia		Corporate and Unallocated Costs		Total Consolidated
Three Months Ended April 1, 2023
Restructuring charges	$	3,056	$	1,087	$	—	$	187	$	4,330
Other restructuring associated costs	2,585		180		—		—		2,765
Asset related charges	2,171		—		—		—		2,171
Other restructuring associated costs and asset related charges	4,756		180		—		—		4,936
Total restructuring and asset related charges	$	7,812	$	1,267	$	—	$	187	$	9,266

The following is a summary of the restructuring accruals recorded and charges incurred:

(amounts in thousands)
Balance as of January 1, 2023	$	5,038
Current period charges	6,915
Payments	(8,018)
Currency translation	50
Balance as of April 1, 2023	$	3,985

Restructuring accruals are expected to be paid within the next 12 months and are included within accrued expenses and other current liabilities in the consolidated balance sheet.

Restructuring accruals recorded and charges incurred in the three months ended March 26, 2022 were immaterial.

On January 26, 2023, we announced to employees a restructuring plan to close a manufacturing facility in Atlanta, Georgia in a continuing effort to optimize the Company’s footprint and drive operational efficiencies (the “Plan”). The Company expects to incur pre-tax restructuring expenses, other closure costs and capital spending of approximately $19.3 million, which includes $3.0 million of capital expenditures, in connection with the Plan. Through April 1, 2023, $8.1 million has been expensed in connection with the Plan, primarily relating to accelerated depreciation and amortization, equipment relocation costs, and restructuring severance costs. The Company expects to incur a total pre-tax cash outlay of approximately $15.0 million by the end of the third quarter of 2023 in connection with the Plan, of which $3.2 million of cash outlay has been incurred as of April 1, 2023.

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Held for Sale

3 Months Ended

Apr. 01, 2023

Discontinued Operations and Disposal Groups [Abstract]

Held for Sale

Held for Sale

During 2021, the Company ceased the appeal process for its litigation with Steves & Sons, Inc. (“Steves”) further described in Note 20 - Commitments and Contingencies. As a result, we are required to divest the Company’s Towanda, PA operations (“Towanda”). As of April 1, 2023 and December 31, 2022, the assets and liabilities associated with the sale of Towanda qualify as held for sale. Since the Company will continue manufacturing door skins for its internal needs, the divestiture decision did not represent a strategic shift thereby precluding the divestiture as qualifying as a discontinued operation.

The assets and liabilities included within the summary below are expected to be disposed of within the next twelve months and are included in assets held for sale and liabilities held for sale in the accompanying balance sheet. The results of Towanda will continue to be reported within our North America operations until the divestiture is finalized.

(amounts in thousands)	April 1, 2023		December 31, 2022
Assets
Inventory	$	16,749	$	16,592
Other current assets	192		110
Property and equipment	44,271		41,600
Intangible assets	1,472		1,471
Goodwill	65,000		65,000
Operating lease assets	850		975
Assets held for sale	$	128,534	$	125,748
Liabilities
Accrued payroll and benefits	$	983	$	852
Accrued expenses and other current liabilities	5,363		4,707
Current maturities of long term debt	—		1
Operating lease liability	341		480
Liabilities held for sale	$	6,687	$	6,040

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Other Income, Net

3 Months Ended

Apr. 01, 2023

Other Income and Expenses [Abstract]

Other Income, Net

Other Income, Net

The table below summarizes the amounts included in other income, net in the accompanying consolidated statements of operations:

	Three Months Ended
(amounts in thousands)	April 1, 2023		March 26, 2022
Foreign currency (gains) losses, net	$	(3,459)	$	1,711
Insurance reimbursement	(1,215)		—
Pension expense (income)	1,788		(1,427)
Recovery of cost from interest received on impaired notes	(1,394)		(7,027)
Governmental assistance	(147)		(65)
Other items	(845)		(529)
Total Other Income, Net	$	(5,272)	$	(7,337)

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Derivative Financial Instruments

3 Months Ended

Apr. 01, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

Derivative Financial InstrumentsForeign currency derivatives – As a multinational corporation, we are exposed to the impact of foreign currency fluctuations. To the extent borrowings, sales, purchases, or other transactions are not executed in the local currency of the operating unit, we are exposed to foreign currency risk. In most of the countries in which we operate, the exposure to foreign currency movements is limited because the operating revenues and expenses of our business units are substantially denominated in the local currency. To mitigate the exposure, we may enter into a variety of foreign currency derivative contracts. To manage the effect of exchange fluctuations on forecasted sales, purchases, acquisitions, capital expenditures,

and certain intercompany transactions that are denominated in foreign currencies, we have foreign currency derivative contracts with a total notional amount of $97.3 million as of April 1, 2023. We also are subject to currency translation risk associated with converting our foreign operations’ financial statements into U.S. dollars. To mitigate the impact to the consolidated earnings of the Company from the effect of the translation of certain subsidiaries’ local currency results into U.S. dollars, we have foreign currency derivative contracts with a total notional amount of $112.1 million as of April 1, 2023. We do not use derivative financial instruments for trading or speculative purposes. As of April 1, 2023, we have not elected hedge accounting for any foreign currency derivative contracts. We record mark-to-market changes in the values of these derivatives in other income, net. We recorded mark-to-market gains of $1.5 million and losses of $1.3 million relating to foreign currency derivatives in the three months ended April 1, 2023 and March 26, 2022, respectively.

Interest rate derivatives – We are exposed to interest rate risk in connection with our variable rate long-term debt and we partially mitigate this risk through interest rate derivatives such as swaps and caps. In May 2020, we entered into interest rate swap agreements to manage this risk. The interest rate swap agreements have outstanding notional amounts aggregating to $370.0 million and mature in December 2023 with a weighted average fixed rate of 0.395% swapped against one-month USD LIBOR floored at 0.00%. Absent any action, interest rate hedges will convert to a SOFR basis after June 30, 2023, although the Company plans to proactively amend these hedges to a SOFR basis prior to that date. The interest rate swap agreements are designated as cash flow hedges and effectively fix the interest rate on a corresponding portion of the aggregate debt outstanding under our Term Loan Facility.

No portion of these interest rate contracts were deemed ineffective during the three months ended April 1, 2023. We recorded pre-tax mark-to-market losses of $0.3 million and gains of $8.9 million during the three months ended April 1, 2023 and March 26, 2022, respectively, in other comprehensive income. We reclassified gains previously recorded in other comprehensive income to interest income of $3.8 million during the three months ended April 1, 2023, and losses to interest expense of $0.2 million during the three months ended March 26, 2022.

As of April 1, 2023, approximately $12.1 million is expected to be reclassified to interest income until the instruments mature in December 2023.

Other derivative instruments – From time to time, we may enter into other types of derivative instruments immaterial to the business. Unless otherwise disclosed, these instruments are not designated as hedging instruments and mark-to-market adjustments are recorded in the statement of operations each period.

The fair values of derivative instruments held are as follows:

	Derivative assets
(amounts in thousands)	Balance Sheet Location	April 1, 2023		December 31, 2022
Derivatives designated as hedging instruments:
Interest rate contracts	Other current assets	$	12,101	$	16,235
Derivatives not designated as hedging instruments:
Foreign currency forward contracts	Other current assets	$	4,472	$	3,809
Other derivative instruments	Other current assets	55		73

	Derivatives liabilities
(amounts in thousands)	Balance Sheet Location	April 1, 2023		December 31, 2022
Derivatives not designated as hedging instruments:
Foreign currency forward contracts	Accrued expenses and other current liabilities	$	2,174	$	3,058
Other derivative instruments	Accrued expenses and other current liabilities	190		288

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Fair Value of Financial Instruments

3 Months Ended

Apr. 01, 2023

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

Fair Value of Financial Instruments

We record financial assets and liabilities at fair value based on FASB guidance related to fair value measurements. The guidance requires fair value to be determined based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. Three levels of inputs may be used to measure fair value:

Level 1 – Quoted prices in active markets for identical assets or liabilities.

Level 2 – Quoted market-based inputs or unobservable inputs that are corroborated by market data.

Level 3 – Unobservable inputs that are not corroborated by market data.

The recorded carrying amounts and fair values of these instruments were as follows:

	April 1, 2023
(amounts in thousands)	Carrying Amount		Total Fair Value		Level 1		Level 2		Level 3
Assets:
Cash equivalents	$	1,714	$	1,714	$	—	$	1,714	$	—
Derivative assets, recorded in other current assets	16,628		16,628		—		16,628		—
Deferred compensation plan assets, recorded in other assets	1,157		1,157		—		1,157		—
Liabilities:
Debt, recorded in long-term debt and current maturities of long-term debt	$	1,761,191	$	1,657,803	$	—	$	1,657,803	$	—
Derivative liabilities, recorded in accrued expenses and other current liabilities	2,364		2,364		—		2,364		—

	December 31, 2022
(amounts in thousands)	Carrying Amount		Total Fair Value		Level 1		Level 2		Level 3
Assets:
Cash equivalents	$	6,078	$	6,078	$	—	$	6,078	$	—
Derivative assets, recorded in other current assets	20,117		20,117		—		20,117		—
Deferred compensation plan assets, recorded in other assets	725		725		—		725		—
Liabilities:
Debt, recorded in long-term debt and current maturities of long-term debt	$	1,759,226	$	1,555,367	$	—	$	1,555,367	$	—
Derivative liabilities, recorded in accrued expenses and other current assets	3,346		3,346		—		3,346		—

Derivative assets and liabilities reported in level 2 primarily include foreign currency derivative contracts and interest rate swap agreements. See Note 18- Derivative Financial Instruments for additional information about our derivative assets and liabilities.

Deferred compensation plan assets reported in level 2 consist of mutual funds.

There are no material non-financial assets or liabilities as of April 1, 2023 or December 31, 2022.

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Commitments and Contingencies

3 Months Ended

Apr. 01, 2023

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Litigation – We are involved in various legal proceedings, claims, and government audits arising in the ordinary course of business. We record our best estimate of a loss when the loss is considered probable and the amount of such loss can be reasonably estimated. When a loss is probable and there is a range of estimated loss with no best estimate within the range, we record the minimum estimated liability related to the lawsuit or claim. As additional information becomes available, we reassess the potential liability and revise our accruals, if necessary. Because of uncertainties related to the resolution of lawsuits and claims, the ultimate outcome may differ materially from our estimates.

Other than the matters described below, there were no proceedings or litigation matters involving the Company or its property as of April 1, 2023 that we believe would have a material adverse effect on our consolidated financial position or cash flows, although they could have a material adverse effect on our operating results for a particular reporting period.

Steves & Sons, Inc. vs JELD-WEN, Inc. – We sell molded door skins to certain customers pursuant to long-term contracts, and these customers in turn use the molded door skins to manufacture interior doors and compete directly against us in the marketplace. We gave notice of termination of one of these contracts and, on June 29, 2016, the counterparty to the agreement, Steves and Sons, Inc. (“Steves”) filed a claim against JWI in the U.S. District Court for the Eastern District of Virginia, Richmond Division (the “Eastern District of Virginia”). The complaint alleged that our acquisition of CMI, a competitor in the molded door skins market, together with subsequent price increases and other alleged acts and omissions, violated antitrust laws, and constituted a breach of contract and breach of warranty. Specifically, the complaint alleged that our acquisition of CMI substantially lessened competition in the molded door skins market. The complaint sought

declaratory relief, ordinary and treble damages, and injunctive relief, including divestiture of certain assets acquired in the CMI acquisition.

In February 2018, a jury in the Eastern District of Virginia returned a verdict that was unfavorable to JWI with respect to Steves’ claims that our acquisition of CMI violated Section 7 of the Clayton Act, and found that JWI breached the supply agreement between the parties (the “Original Action”). The verdict awarded Steves $12.2 million for past damages under both the Clayton Act and breach of contract claims and $46.5 million in future lost profits under the Clayton Act claim.

During the course of the proceedings in the Eastern District of Virginia, we discovered certain facts that led us to conclude that Steves, its principals, and certain former employees of the Company had misappropriated Company trade secrets, violated the terms of various agreements between the Company and those parties, and violated other laws. On May 11, 2018, a jury in the Eastern District of Virginia returned a verdict on our trade secrets claims against Steves and awarded damages in the amount of $1.2 million. The presiding judge entered a judgment in our favor for those damages, and the entire amount has been paid by Steves. On August 16, 2019, the presiding judge granted Steves’ request for an injunction, prohibiting us from pursuing certain claims against individual defendants pending in Bexar County, Texas (the “Steves Texas Trade Secret Theft Action”). On September 11, 2019, JELD-WEN filed a notice of appeal of the Eastern District of Virginia’s injunction to the Fourth Circuit Court of Appeals (the “Fourth Circuit”).

On March 13, 2019, the presiding judge entered an Amended Final Judgment Order in the Original Action, awarding $36.5 million in past damages under the Clayton Act (representing a trebling of the jury’s verdict) and granting divestiture of certain assets acquired in the CMI acquisition, subject to appeal. The judgment also conditionally awarded damages in the event the judgment was overturned on appeal. Specifically, the court awarded $139.4 million as future antitrust damages in the event the divestiture order was overturned on appeal and $9.9 million as past contract damages in the event both the divestiture and antitrust claims were overturned on appeal.

On April 12, 2019, Steves filed a petition requesting an award of its fees and a bill of costs, seeking $28.4 million in attorneys’ fees and $1.7 million in costs in connection with the Original Action. On November 19, 2019, the presiding judge entered an order for further relief awarding Steves an additional $7.1 million in damages for pricing differences from the date of the underlying jury verdict through May 31, 2019 (the “Pricing Action”). We also appealed that ruling. On April 14, 2020, Steves filed a motion for further supplemental relief for pricing differences from the date of the prior order and going forward through the end of the parties’ current supply agreement (the “Future Pricing Action”). We opposed that request for further relief.

JELD-WEN filed a supersedeas bond and notice of appeal of the judgment, which was heard by the Fourth Circuit on May 29, 2020. On February 18, 2021, the Fourth Circuit issued its decision on appeal in the Original Action, affirming the Amended Final Judgment Order in part and vacating and remanding in part. The Fourth Circuit vacated the Eastern District of Virginia’s alternative $139.4 million lost-profits award, holding that award was premature because Steves has not suffered the purported injury on which its claim for future lost profits rests. The Fourth Circuit also vacated the Eastern District of Virginia’s judgment for Sam Steves, Edward Steves, and John Pierce on JELD-WEN’s trade secrets claims. The Fourth Circuit affirmed the Eastern District of Virginia’s finding of antitrust injury and its award of $36.5 million in past antitrust damages. It also affirmed the Eastern District of Virginia’s divestiture order, while clarifying that JELD-WEN retains the right to challenge the terms of any divestiture, including whether a sale to any particular buyer will serve the public interest, and made clear that the Eastern District of Virginia may need to revisit its divestiture order if the special master who has been appointed by the presiding judge cannot locate a satisfactory buyer. JELD-WEN then filed a motion for rehearing en banc with the Fourth Circuit that was denied on March 22, 2021.

Following a thorough review, and consistent with our practice, we concluded that it is in the best interest of the Company and its stakeholders to move forward with the divestiture of Towanda and certain related assets. Although the Company did not seek Supreme Court review of the Fourth Circuit’s February 18, 2021 decision, the Company retains the legal right to challenge the divestiture process and the final divestiture order. We made estimates related to the divestiture in the preparation of our financial statements; however, there can be no guarantee that the divestiture will be consummated. The divestiture process is ongoing, and the special master is overseeing this process. Although the Company has decided to divest, we continue to believe that Steves’ claims lacked merit and that it was not entitled to the extraordinary remedy of divestiture. We continue to believe that the judgment in accordance with the verdict was improper under applicable law.

During the pendency of the Original Action, on February 14, 2020, Steves filed a complaint and motion for preliminary injunction in the Eastern District of Virginia alleging that we breached the long-term supply agreement between the parties, including, among other claims, by incorrectly calculating the allocation of door skins owed to Steves (the “Allocation Action”). Steves sought an additional allotment of door skins and damages for violation of antitrust laws, tortious interference, and breach of contract. On April 10, 2020, the presiding judge granted Steves’ motion for preliminary injunction, and the parties settled the issues underlying the preliminary injunction on April 30, 2020 and the Company reserved the right to appeal the ruling in the Fourth Circuit. The Company believed all the claims lacked merit and moved to dismiss the antitrust and tortious interference claims.

On June 2, 2020, we entered into a settlement agreement with Steves to resolve the Pricing Action, the Future Pricing Action, and the Allocation Action. As a result of the settlement, Steves filed a notice of satisfaction of judgment in the Pricing Action, withdrew its Future Pricing Action with prejudice, and filed a stipulated dismissal with prejudice in the Allocation Action. The Company also withdrew its appeal of the Pricing Action. The parties agreed to bear their own respective attorneys’ fees and costs in these actions. In partial consideration of the settlement, JWI and Steves entered into an amended supply agreement satisfactory to both parties that, by its terms, ended on September 10, 2021. This settlement had no effect on the Original Action between the parties except to agree that certain specific terms of the Amended Final Judgment Order in the Original Action would apply to the amended supply agreement during the pendency of the appeal of the Original Action. On April 2, 2021, JWI and Steves filed a stipulation regarding the amended supply agreement in the Original Action, stating that regardless of whether the case remains on appeal as of September 10, 2021, and absent further order of the court, the amended supply agreement would be extended until the divestiture of Towanda and certain related assets is complete and Steves’ new supply agreement with the company that acquires Towanda is in effect.

We continue to believe the claims in the settled actions lacked merit and made no admission of liability in these matters.

On October 7, 2021, we entered into a settlement agreement with Steves to resolve the following: (i) Steves’ past and any future claims for attorneys’ fees, expenses, and costs in connection with the Original Action, except that Steves and JWI each reserved the right to seek attorneys’ fees arising out of any challenge of the divestiture process or the final divestiture order; (ii) the Steves Texas Trade Secret Theft Action and the related Fourth Circuit appeal of the Eastern District of Virginia’s injunction in the Original Action; (iii) the past damages award in the Original Action; and (iv) any and all claims and counterclaims, known or unknown, that were asserted or could have been asserted against each other from the beginning of time through the date of the settlement agreement. As a result of the settlement, the parties filed a stipulated notice of satisfaction of the past antitrust damages judgment and a stipulated notice of settlement of Steves’ claim for attorneys’ fees, expenses, and costs against JWI in the Original Action, and Steves filed a notice of withdrawal of its motion for attorneys’ fees and expenses and bill of costs in the Original Action. The Company also filed a notice of dismissal with prejudice and agreed to take no judgment in the Steves Texas Trade Secret Theft Action, and the parties filed a joint agreement for dismissal of the injunction appeal in the Fourth Circuit. On November 3, 2021, we paid $66.4 million to Steves under the settlement agreement.

Cambridge Retirement System v. JELD-WEN Holding, Inc., et al. – On February 19, 2020, Cambridge Retirement System filed a putative class action lawsuit in the Eastern District of Virginia against the Company, current and former Company executives, and various Onex-related entities alleging violations of Section 10(b) and Rule 10b-5 of the Exchange Act, as well as violations of Section 20(a) of the Exchange Act against the individual defendants and Onex-related entities (“Cambridge”). The lawsuit sought compensatory damages, equitable relief, and an award of attorneys’ fees and costs. On May 8, 2020, the Public Employees Retirement System of Mississippi and the Plumbers and Pipefitters National Pension Fund were named as co-lead plaintiffs and filed an amended complaint on June 22, 2020.

On April 20, 2021, the parties reached an agreement in principle to resolve this securities class action. The agreement contemplated a full release of claims through the date of preliminary court approval of the settlement in exchange for a payment of $39.5 million, primarily funded by the Company’s D&O insurance carriers, except $5.0 million which was provisionally funded by the Company and remains subject to dispute with insurance carriers. On November 22, 2021, the Court granted final approval of the settlement agreement. The deadline to appeal the entry of the final approval order and judgment was December 22, 2021, and no party or class member filed an appeal. The Company continues to believe that the plaintiffs’ claims lacked merit and has denied any liability or wrongdoing for the claims made against the Company.

In re JELD-WEN Holding, Inc. Derivative Litigation – On February 2, 2021, Jason Aldridge, on behalf of the Company, filed a derivative action in the U.S. District Court for the District of Delaware against certain current and former executives and directors of the Company, alleging that the individual defendants breached their fiduciary duties by allowing the wrongful acts alleged in the Steves and Cambridge actions, as well as violations of Section 14(a) and 20(a) of the Exchange Act, unjust enrichment, and waste of corporate assets among other allegations (the “Aldridge Action”). The lawsuit sought compensatory damages, equitable relief, and an award of attorneys’ fees and costs. The plaintiff filed an amended complaint on May 10, 2021.

On June 21, 2021, prior to a response from the Company in the Aldridge Action, Shieta Black and the Board of Trustees of the City of Miami General Employees’ & Sanitation Employees’ Retirement Trust, on behalf of the Company, filed a derivative action in the U.S. District Court for the District of Delaware against certain current and former executives and directors of the Company and Onex Corporation (“Onex”), alleging that the defendants breached their fiduciary duties by allowing the wrongful acts alleged in the Steves and Cambridge actions, as well as insider trading, and unjust enrichment among other allegations (the “Black Action”). The lawsuit sought compensatory damages, corporate governance reforms, restitution, equitable relief, and an award of attorneys’ fees and costs. The court granted the Black and Aldridge plaintiffs in motion to consolidate the lawsuits on July 16, 2021.

On June 20, 2022, the parties entered into a settlement agreement of the consolidated matters, which was approved by the Court on approval of the December 20, 2022, and the cases were dismissed with prejudice. As part of the settlement, the Company, as putative plaintiff, received approximately $10.5 million after attorneys’ fees and costs were deducted in January 2023.

In re Interior Molded Doors Antitrust Litigation – On October 19, 2018, Grubb Lumber Company, on behalf of itself and others similarly situated, filed a putative class action lawsuit against us and one of our competitors in the doors market, Masonite Corporation (“Masonite”), in the Eastern District of Virginia. We subsequently received additional complaints from and on behalf of direct and indirect purchasers of interior molded doors. The suits were consolidated into two separate actions, a Direct Purchaser Action and an Indirect Purchaser Action. The suits alleged that Masonite and JELD-WEN violated Section 1 of the Sherman Act, and in the Indirect Purchaser Action, related state law antitrust and consumer protection laws, by engaging in a scheme to artificially raise, fix, maintain, or stabilize the prices of interior molded doors in the United States. The complaints sought ordinary and treble damages, declaratory relief, interest, costs, and attorneys’ fees.

On August 31, 2020, JELD-WEN and Masonite entered into a settlement agreement with the putative Direct Purchaser     

class to resolve the Direct Purchaser Action. Each defendant agreed to pay a total of $30.8 million to the named plaintiffs and the settlement class in exchange for a full release of claims through the date of preliminary approval of the revised settlement, which the court granted on February 5, 2021. In addition, on September 4, 2020, JELD-WEN and Masonite entered into a separate settlement agreement with the putative Indirect Purchaser class to resolve the Indirect Purchaser Action. Each defendant agreed to pay $9.75 million to the named plaintiffs and the settlement class in exchange for a full release of claims through the execution date of the settlement agreement. The final fairness hearing in the Direct Purchaser Action was held on June 2, 2021, and the court entered a final approval order and judgment on June 3, 2021. On June 17, 2021, the Company made the settlement payment to the named plaintiffs and the settlement class in the Direct Purchaser Action. The deadline to appeal the entry of the final approval order and judgment was July 7, 2021, and no party or class member filed an appeal. The final fairness hearing in the Indirect Purchaser Action was held on July 26, 2021 and the court issued a final approval order and judgment on July 27, 2021. On August 10, 2021, the Company made the settlement payment to the named plaintiffs and the settlement class in the Indirect Purchaser Action. The deadline to appeal the entry of the final approval order and judgment was August 26, 2021, and no party or class member filed an appeal. The Company continues to believe that the plaintiffs’ claims lacked merit and has denied any liability or wrongdoing for the claims made against the Company.

Canadian Antitrust Litigation – On May 15, 2020, Développement Émeraude Inc., on behalf of itself and others similarly situated, filed a putative class action lawsuit against the Company and Masonite in the Superior Court of the Province of Quebec, Canada, which was served on us on September 18, 2020 (“the Quebec Action”). The putative class consists of any person in Canada who, since October 2012, purchased one or more interior molded doors from the Company or Masonite. The suit alleges an illegal conspiracy between the Company and Masonite to agree on prices, the distribution of market shares and/or the production levels of interior molded doors and that the plaintiffs suffered damages in that they were charged and paid higher prices for interior molded doors than they would have had to pay but for the alleged anti-competitive conduct. The plaintiffs are seeking compensatory and punitive damages, attorneys’ fees and costs. On September 9, 2020, Kate O’Leary Swinkels, on behalf of herself and others similarly situated, filed a putative class action against the Company and Masonite in the Federal Court of Canada, which was served on us on September 29, 2020 (the “Federal Court Action”). The Federal Court Action makes substantially similar allegations to the Quebec Action and the putative class is represented by the same counsel. In February 2021, the plaintiff in the Federal Court Action issued a proposed Amended Statement of Claim that replaced the named plaintiff, Kate O’Leary Swinkels, with David Regan. The plaintiff has sought a stay of the Quebec Action while the Federal Court Action proceeds. We anticipate a hearing on the certification of the Federal Court Action in 2023. The Company believes both the Quebec Action and the Federal Court Action lack merit and intends to vigorously defend against them.

We have evaluated the claims against us and recorded provisions based on management’s judgment about the probable outcome of the litigation and have included our estimates in accrued expenses in the accompanying balance sheets. See Note 7 - Accrued Expenses and Other Current Liabilities. While we expect a favorable resolution to these matters, the dispute resolution process could be lengthy, and if the plaintiffs were to prevail completely or substantially in the respective matters described above, such an outcome could have a material adverse effect on our operating results, consolidated financial position, or cash flows.

Self-Insured Risk – We self-insure substantially all of our domestic business liability risks including general liability, product liability, warranty, personal injury, auto liability, workers’ compensation, and employee medical benefits. Excess insurance policies from independent insurance companies generally cover exposures between $5.0 million and $200.0 million for domestic product liability risk and exposures between $3.0 million and $200.0 million for auto, general liability, personal injury, and workers’ compensation. We have no stop loss insurance covering our self-insured employee medical plan and are responsible for all claims thereunder. We estimate our provision for self-insured losses based upon an evaluation of current claim exposure and historical loss experience. Actual self-insurance losses may vary significantly

from these estimates. At April 1, 2023 and December 31, 2022, our accrued liability for self-insured risks was $92.0 million and $92.6 million, respectively.

Indemnifications – At April 1, 2023, we had commitments related to certain representations made in contracts for the purchase or sale of businesses or property. These representations primarily relate to past actions such as responsibility for transfer taxes if they should be claimed, and the adequacy of recorded liabilities, warranty matters, employment benefit plans, income tax matters, or environmental exposures. These guarantees or indemnification responsibilities typically expire within one to three years. We are not aware of any material amounts claimed or expected to be claimed under these indemnities. From time to time and in limited geographic areas, we have entered into agreements for the sale of our products to certain customers that provide additional indemnifications for liabilities arising from construction or product defects. We cannot estimate the potential magnitude of such exposures, but to the extent specific liabilities have been identified related to product sales, liabilities have been provided in the warranty accrual in the accompanying consolidated balance sheets.

Other Financing Arrangements – At times we are required to provide letters of credit, surety bonds, or guarantees to meet various performance, legal, warranty, environmental, workers compensation, licensing, utility, and governmental requirements. Stand-by letters of credit are provided to certain customers and counterparties in the ordinary course of business as credit support for contractual performance guarantees, advanced payments received from customers, and future funding commitments. The stated values of these letters of credit agreements, surety bonds, and guarantees were $67.6 million at April 1, 2023 and December 31, 2022, respectively.

Environmental Contingencies – We periodically incur environmental liabilities associated with remediating our current and former manufacturing sites as well as penalties for not complying with environmental rules and regulations. We record a liability for remediation costs when it is probable that we will be responsible for such costs and the costs can be reasonably estimated. These environmental liabilities are estimated based on current available facts and current laws and regulations. Accordingly, it is likely that adjustments to the estimated liabilities will be necessary as additional information becomes available. Short-term environmental liabilities and settlements are recorded in accrued expenses and other current liabilities in the accompanying consolidated balance sheets and totaled $0.5 million at April 1, 2023 and $0.5 million at December 31, 2022. Long-term environmental liabilities are recorded in deferred credits and other liabilities in the accompanying consolidated balance sheets and totaled $11.8 million at April 1, 2023 and December 31, 2022, respectively.

Everett, Washington WADOE Action – In 2007, we were identified by the WADOE as a PLP with respect to our former manufacturing site in Everett, Washington. In 2008, we entered into an Agreed Order with the WADOE to assess historic environmental contamination and remediation feasibility at the site. As part of the order, we agreed to develop a CAP, arising from the feasibility assessment. In December 2020, we submitted to the WADOE a draft feasibility assessment with an array of remedial alternatives, which we considered substantially complete. During 2021, several comment rounds were completed as well as the identification of the Port of Everett and W&W Everett Investment LLC as additional PLPs, with respect to this matter with each PLP being jointly and severally liable for the cleanup costs. The WADOE received the final feasibility assessment on December 31, 2021, containing various remedial alternatives with its preferred remedial alternatives totaling $23.4 million. Based on this study, we have determined our range of possible outcomes to be $11.8 million to $33.4 million. On March 1, 2022, we delivered a draft CAP to the WADOE consistent with its preferred alternatives, and on May 16, 2022, we received the WADOE’s initial comments on the draft CAP. On June 13, 2022, we responded to the WADOE’s comments, and on October 19, 2022, the WADOE identified Wick Family Properties as another PLP. On December 19, 2022, the WADOE provided the draft CAP to the Company and other PLPs. After further negotiation, the final CAP will ultimately be formalized in an Agreed Order or Consent Decree with the WADOE, the Company, and the other PLPs. We have made provisions within our financial statements within the range of possible outcomes; however, the contents and cost of the final CAP and allocation of the responsibility between the identified PLPs could vary materially from our estimates.

Towanda, Pennsylvania Consent Order – In December 2020, we entered into a COA with the PaDEP to remove a pile of wood fiber waste from our site in Towanda, Pennsylvania, which we acquired in connection with our acquisition of CMI in 2012, by using it as fuel for a boiler at that site. The COA replaced a 2018 Consent Decree between PaDEP and us. Under the COA, we are required to achieve certain periodic removal objectives and ultimately remove the entire pile by August 31, 2025. There are currently $1.4 million in bonds posted in connection with these obligations. If we are unable to remove this pile by August 31, 2025, then the bonds will be forfeited, and we may be subject to penalties by PaDEP. We currently anticipate meeting all applicable removal deadlines; however, if our operations should change, additional alternatives would be evaluated to meet the prescribed removal timeline.

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Supplemental Cash Flow Information

3 Months Ended

Apr. 01, 2023

Supplemental Cash Flow Elements [Abstract]

Supplemental Cash Flow Information

Supplemental Cash Flow Information

	Three Months Ended
(amounts in thousands)	April 1, 2023		March 26, 2022
Cash Operating Activities:
Operating leases	$	16,490	$	15,203
Interest payments on financing lease obligations	42		43
Cash paid for amounts included in the measurement of lease liabilities	$	16,532	$	15,246
Cash Investing Activities:
Purchases of securities for deferred compensation plan	$	(420)	$	—
Sale of securities for deferred compensation plan	37		—
Change in securities for deferred compensation plan	$	(383)	$	—
Non-cash Investing Activities:
Property, equipment, and intangibles purchased in accounts payable	$	4,077	$	3,868
Property, equipment, and intangibles purchased with debt	869		1,423
Customer accounts receivable converted to notes receivable	38		—
Cash Financing Activities:
Borrowings on long-term debt	96,867		233,500
Payments of long-term debt	(96,526)		(122,877)
Change in long-term debt	$	341	$	110,623
Cash paid for amounts included in the measurement of finance lease liabilities	$	484	$	495
Non-cash Financing Activities:
Shares surrendered for tax obligations for employee share-based transactions in accrued liabilities	$	16	$	2,268
Shares repurchased in accounts payable	—		2,191
Accounts payable converted to installment notes	176		1,279
Other Supplemental Cash Flow Information:
Cash taxes paid, net of refunds	$	13,785	$	16,648
Cash interest paid	7,641		3,682

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Subsequent Events

3 Months Ended

Apr. 01, 2023

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

On April 17, 2023, we entered into a share sale agreement with Aristotle Holding III Pty Limited, a subsidiary of Platinum Equity Advisors, LLC, to sell our Australasia segment for a purchase price of approximately AUD 688.0 million. The transaction is expected to close in the third quarter of 2023, subject to certain closing conditions and regulatory approvals, including approval by the Australian Foreign Investment Review Board.

The share sale agreement specifies foreign exchange conversion rates into USD for AUD 230.0 million of the sales price. The conversion rates range from 0.6726 USD to 0.6749 USD to 1.0 AUD, depending on the sale completion date. On April 18, 2023, we entered into forward contracts to sell a total of AUD 420.0 million and receive USD at exchange rates ranging from 0.6751 USD to 0.6759 USD to 1.0 AUD. These forward contracts mature in the same quarter in which we expect to close the sale of our Australasia segment.

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Description of Company and Summary of Significant Accounting Policies (Policies)

3 Months Ended

Apr. 01, 2023

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation – The accompanying unaudited consolidated financial statements as of April 1, 2023 and for the three months ended April 1, 2023 and March 26, 2022, respectively, have been prepared in accordance with GAAP for interim financial information and pursuant to the rules and regulations of the SEC. In the opinion of management, the unaudited consolidated financial statements have been prepared on the same basis as the audited financial statements and include all adjustments, consisting only of normal recurring adjustments, necessary for the fair statement of the Company’s financial position for the periods presented. The results for the three months ended April 1, 2023 are not necessarily indicative of the results to be expected for the year ending December 31, 2023, or any other period. The accompanying consolidated balance sheet as of December 31, 2022 was derived from audited financial statements included in our Annual Report on Form 10-K. The accompanying consolidated financial statements do not include all of the information and footnotes required by GAAP for annual financial statements. Accordingly, they should be read in conjunction with the audited financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2022.

All U.S. dollar and other currency amounts, except per share amounts, are presented in thousands unless otherwise noted.

Fiscal Year

Fiscal Year – We operate on a fiscal calendar year, and each interim quarter is comprised of two 4-week periods and one 5-week period, with each week ending on a Saturday. Our fiscal year always begins on January 1 and ends on December 31. As a result, our first and fourth quarters may have more or fewer days included than a traditional 91-day fiscal quarter.

Use of Estimates

Use of Estimates – The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates, assumptions, and allocations that affect amounts reported in the consolidated financial statements and related notes. Significant items that are subject to such estimates and assumptions include, but are not limited to, long-lived assets including goodwill and other intangible assets, employee benefit obligations, income tax uncertainties, contingent assets and liabilities, provisions for bad debt, inventory, warranty liabilities, legal claims, valuation of derivatives, environmental remediation, and claims relating to self-insurance. Actual results could differ due to the uncertainty inherent in the nature of these estimates.

Recent Accounting Standards

Recent Accounting Standards – In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions affected by the discontinuation of LIBOR or by another reference rate expected to be discontinued. In January 2021, the FASB issued

ASU No. 2021-01, Reference Rate Reform (Topic 848): Scope, to clarify the scope of ASU No. 2020-04. In December 2022, the FASB issued ASU No. 2022-06, Deferral of the Sunset Date of Topic 848, which extended the relief provisions under Topic 848 through December 31, 2024. In May 2020, we elected the expedient within ASC 848 which allows us to assume that our hedged interest payments are probable of occurring regardless of any expected modifications in their terms related to reference rate reform. In addition, ASC 848 allows for the option to change the method of assessing effectiveness upon a change in critical terms of the derivative or the hedged transactions and upon the end of relief under ASC 848. At this time, we have elected to continue the method of assessing effectiveness as documented in the original hedge documentation and apply the practical expedients related to probability to assume that the reference rate on the hypothetical derivative matches the reference rate on the hedging instrument. We plan to evaluate the remaining expedients for adoption, as applicable, when contracts are modified. We currently do not expect this guidance to have a material impact on our consolidated financial statements. Refer to Note 18 - Derivative Financial Instruments for additional disclosure information relating to our hedging activity.

We have considered the applicability and impact of all ASUs. We have assessed ASUs not listed above and have determined that they were either not applicable or were not expected to have a material impact on our financial statements.

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Inventories (Tables)

3 Months Ended

Apr. 01, 2023

Inventory Disclosure [Abstract]

Schedule of Inventory

(amounts in thousands)	April 1, 2023		December 31, 2022
Raw materials	$	475,610	$	511,681
Work in process	29,921		31,310
Finished goods	132,272		123,464
Total inventories	$	637,803	$	666,455

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Property and Equipment, Net (Tables)

3 Months Ended

Apr. 01, 2023

Property, Plant and Equipment [Abstract]

Schedule of Property, Plant and Equipment

(amounts in thousands)	April 1, 2023		December 31, 2022
Property and equipment	$	2,151,549	$	2,135,848
Accumulated depreciation	(1,393,407)		(1,373,362)
Total property and equipment, net	$	758,142	$	762,486

Depreciation expense was recorded as follows:

	Three Months Ended
(amounts in thousands)	April 1, 2023		March 26, 2022
Cost of sales	$	22,916	$	22,512
Selling, general and administrative	1,964		1,708
Total depreciation expense	$	24,880	$	24,220

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Goodwill (Tables)

3 Months Ended

Apr. 01, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

The following table summarizes the changes in goodwill by reportable segment:

(amounts in thousands)	North America		Europe		Australasia		Total Reportable Segments
Balance as of December 31, 2022	$	182,269	$	199,684	$	78,552	$	460,505
Currency translation	11		3,889		(802)		3,098
Balance as of April 1, 2023	$	182,280	$	203,573	$	77,750	$	463,603

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Intangible Assets, Net (Tables)

3 Months Ended

Apr. 01, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Finite-Lived Intangible Assets

The cost and accumulated amortization values of our intangible assets were as follows:

	April 1, 2023
(amounts in thousands)	Cost		Accumulated Amortization		Net Book Value
Customer relationships and agreements	$	138,964	$	(83,241)	$	55,723
Software	121,305		(46,461)		74,844
Trademarks and trade names	53,420		(13,153)		40,267
Patents, licenses and rights	42,419		(26,522)		15,897
Total amortizable intangibles	$	356,108	$	(169,377)	$	186,731

	December 31, 2022
(amounts in thousands)	Cost		Accumulated Amortization		Net Book Value
Customer relationships and agreements	$	137,914	$	(79,761)	$	58,153
Software	119,239		(43,208)		76,031
Trademarks and trade names	53,481		(12,563)		40,918
Patents, licenses and rights	42,821		(25,818)		17,003
Total amortizable intangibles	$	353,455	$	(161,350)	$	192,105

Schedule of Finite-lived Intangible Assets Amortization Expense

Intangible assets that become fully amortized are removed from the accounts in the period that they become fully amortized. Amortization expense was recorded as follows:

	Three Months Ended
(amounts in thousands)	April 1, 2023		March 26, 2022
Amortization expense	$	7,487	$	8,145

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Accrued Expenses and Other Current Liabilities (Tables)

3 Months Ended

Apr. 01, 2023

Payables and Accruals [Abstract]

Schedule of Accrued Expenses and Other Current Liabilities

(amounts in thousands)	April 1, 2023		December 31, 2022
Accrued sales and advertising rebates	$	76,652	$	93,337
Current portion of operating lease liability	43,546		42,494
Non-income related taxes	31,076		25,700
Accrued expenses	24,032		18,423
Current portion of warranty liability (Note 8)	23,114		23,079
Deferred revenue and customer deposits	23,104		24,753
Accrued freight	18,382		17,398
Accrued interest payable	17,508		4,038
Current portion of accrued claim costs relating to self-insurance programs	17,375		17,932
Accrued income taxes payable	9,900		12,848
Current portion of restructuring accrual (Note 15)	3,985		5,038
Legal claims provision	3,477		3,490
Current portion of derivative liability (Note 18)	2,364		3,346
Total accrued expenses and other current liabilities	$	294,515	$	291,876

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Warranty Liability (Tables)

3 Months Ended

Apr. 01, 2023

Product Warranties Disclosures [Abstract]

Schedule of Analysis of Warranty Liability

An analysis of our warranty liability is as follows:

(amounts in thousands)	April 1, 2023		March 26, 2022
Balance as of January 1	$	54,337	$	54,860
Current period charges	7,240		7,151
Experience adjustments	539		684
Payments	(7,864)		(7,742)
Currency translation	108		(4)
Balance at period end	54,360		54,949
Current portion	(23,114)		(23,387)
Long-term portion	$	31,246	$	31,562

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Long-Term Debt (Tables)

3 Months Ended

Apr. 01, 2023

Debt Disclosure [Abstract]

Schedule of Long-term Debt Instruments

Our long-term debt, net of original issue discount and unamortized debt issuance costs, consisted of the following:

	April 1, 2023	April 1, 2023		December 31, 2022
(amounts in thousands)	Interest Rate
Senior Secured Notes and Senior Notes	4.63% - 6.25%	$	1,050,000	$	1,050,000
Term loans	1.30% - 7.09%	540,572		541,970
Revolving credit facilities	5.93% - 8.25%	63,000		55,000
Finance leases and other financing arrangements	1.25% - 7.16%	84,995		89,784
Mortgage notes	4.62% - 5.12%	22,624		22,472
Total Debt		1,761,191		1,759,226
Unamortized debt issuance costs and original issue discounts		(10,841)		(11,597)
Current maturities of long-term debt		(29,109)		(34,391)
Long-term debt		$	1,721,241	$	1,713,238

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Segment Information (Tables)

3 Months Ended

Apr. 01, 2023

Segment Reporting [Abstract]

Schedule of Segment Reportable Segments, by Segment

The following tables set forth certain information relating to our segments’ operations:

(amounts in thousands)	North America		Europe		Australasia		Total Operating Segments		Corporate and Unallocated Costs		Total Consolidated
Three Months Ended April 1, 2023
Total net revenues	$	768,122	$	312,621	$	145,670	$	1,226,413	$	—	$	1,226,413
Intersegment net revenues	(89)		(132)		(3,575)		(3,796)		—		(3,796)
Net revenues from external customers	$	768,033	$	312,489	$	142,095	$	1,222,617	$	—	$	1,222,617
Three Months Ended March 26, 2022
Total net revenues	$	722,571	$	323,306	$	130,433	$	1,176,310	$	—	$	1,176,310
Intersegment net revenues	(228)		(34)		(5,026)		(5,288)		—		(5,288)
Net revenues from external customers	$	722,343	$	323,272	$	125,407	$	1,171,022	$	—	$	1,171,022

(amounts in thousands)	North America		Europe		Australasia		Total Operating Segments		Corporate and Unallocated Costs		Total Consolidated
Three Months Ended April 1, 2023
Net income (loss)	$	35,249	$	7,299	$	5,317	$	47,865	$	(32,731)	$	15,134
Income tax expense (benefit)	14,533		1,415		2,348		18,296		(12,084)		6,212
Depreciation and amortization	17,798		7,433		4,447		29,678		3,112		32,790
Interest expense, net	2,834		128		869		3,831		17,390		21,221
Restructuring and asset related charges	7,812		1,267		—		9,079		187		9,266
Net other special items	972		95		(386)		681		8,231		8,912
Adjusted EBITDA	$	79,198	$	17,637	$	12,595	$	109,430	$	(15,895)	$	93,535
Three Months Ended March 26, 2022
Net income (loss)	$	38,068	$	(631)	$	2,017	$	39,454	$	(39,982)	$	(528)
Income tax expense (benefit)(1)	1,008		1,398		996		3,402		(3,590)		(188)
Depreciation and amortization	16,685		7,892		4,844		29,421		3,144		32,565
Interest expense, net	1,127		1,805		1,014		3,946		14,408		18,354
Restructuring and asset related charges	—		—		22		22		(21)		1
Net other special items	10,197		4,234		1,479		15,910		14,135		30,045
Adjusted EBITDA	$	67,085	$	14,698	$	10,372	$	92,155	$	(11,906)	$	80,249

(1)Income tax expense (benefit) in Corporate and unallocated costs includes the tax impact of US Operations in the three months ended March 26, 2022.

Schedule of Reconciliation of Net Income (Loss) to Adjusted EBITDA

Reconciliations of net income to Adjusted EBITDA are as follows:

	Three Months Ended
(amounts in thousands)	April 1, 2023		March 26, 2022
Net income (loss)	$	15,134	$	(528)
Income tax expense (benefit)	6,212		(188)
Depreciation and amortization	32,790		32,565
Interest expense, net	21,221		18,354
Special items:
Legal and professional expenses and settlements(1)	1,822		1,916
Restructuring and asset related charges(2)	9,266		1
Facility closure, consolidation, and other related costs and adjustments(3)	1,347		132
M&A related costs(4)	4,550		3,270
Share-based compensation expense(5)	4,383		9,664
Non-cash foreign exchange transaction/translation (income) loss(6)	(3,066)		6,218
Other special items (7)	(124)		8,845
Adjusted EBITDA	$	93,535	$	80,249

.

(1)Legal and professional expenses and settlements primarily related to litigation and transformation initiatives.

(2)Represents severance, accelerated depreciation charges, and other expenses directly incurred as a result of restructuring events, including equipment relocation expenses.

(3)Facility closure, consolidation, and other related costs and adjustments primarily related to winding down certain facilities closed in 2022.

(4)M&A related costs consists primarily of legal and professional expenses related to the potential dispositions of Towanda and our Australasia segment.

(5)Represents non-cash equity-based compensation expense related to the issuance of share-based awards.

(6)Non-cash foreign exchange transaction/translation (income)/loss primarily consists of (gains)/losses associated with fair value adjustments of foreign currency derivatives and revaluation of intercompany balances.

(7)Other special items not core to ongoing business activity in the three months ended March 26, 2022 primarily consists of $6.9 million in expenses related to fire damage and downtime at one of our facilities in our North America segment.

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Earnings Per Share (Tables)

3 Months Ended

Apr. 01, 2023

Earnings Per Share [Abstract]

Schedule of Weighted Average Shares Outstanding, Basic and Diluted

The basic and diluted income per share calculations were determined based on the following share data:

	Three Months Ended
	April 1, 2023	March 26, 2022
Weighted average outstanding shares of Common Stock basic	84,598,945	89,802,974
Restricted stock units and options to purchase Common Stock	550,143	—
Weighted average outstanding shares of Common Stock diluted	85,149,088	89,802,974

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share

The following table provides the securities that could potentially dilute basic earnings per share in the future but were not included in the computation of diluted income per share as their inclusion would be anti-dilutive:

	Three Months Ended
	April 1, 2023	March 26, 2022
Common Stock options	1,669,638	1,668,613
Restricted stock units	782,751	1,086,958
Performance share units	192,940	390,084

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Stock Compensation (Tables)

3 Months Ended

Apr. 01, 2023

Share-Based Payment Arrangement [Abstract]

Schedule of Stock Option Activity Roll forward

The activity under our incentive plans for the periods presented are reflected in the following tables:

	Three Months Ended
	April 1, 2023			March 26, 2022
	Shares	Weighted Average Exercise Price Per Share		Shares	Weighted Average Exercise Price Per Share
Options granted	235,892	$	13.29	310,554	$	24.17
Options canceled	7,395	$	26.33	37,770	$	28.57
Options exercised	—	$	—	66,946	$	12.55
	Shares	Weighted Average Grant Date Fair Value		Shares	Weighted Average Grant Date Fair Value
RSUs granted	1,336,005	$	13.21	845,395	$	24.18
PSUs granted	292,064	$	17.36	158,587	$	29.24

Schedule of RSU and PSU Activity Roll forward

The activity under our incentive plans for the periods presented are reflected in the following tables:

	Three Months Ended
	April 1, 2023			March 26, 2022
	Shares	Weighted Average Exercise Price Per Share		Shares	Weighted Average Exercise Price Per Share
Options granted	235,892	$	13.29	310,554	$	24.17
Options canceled	7,395	$	26.33	37,770	$	28.57
Options exercised	—	$	—	66,946	$	12.55
	Shares	Weighted Average Grant Date Fair Value		Shares	Weighted Average Grant Date Fair Value
RSUs granted	1,336,005	$	13.21	845,395	$	24.18
PSUs granted	292,064	$	17.36	158,587	$	29.24

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Restructuring and Asset Related Charges (Tables)

3 Months Ended

Apr. 01, 2023

Restructuring and Related Activities [Abstract]

Schedule of Restructuring and Asset Related Costs

The following table summarizes the restructuring and asset related charges for the periods indicated:

(amounts in thousands)	North America		Europe		Australasia		Corporate and Unallocated Costs		Total Consolidated
Three Months Ended April 1, 2023
Restructuring charges	$	3,056	$	1,087	$	—	$	187	$	4,330
Other restructuring associated costs	2,585		180		—		—		2,765
Asset related charges	2,171		—		—		—		2,171
Other restructuring associated costs and asset related charges	4,756		180		—		—		4,936
Total restructuring and asset related charges	$	7,812	$	1,267	$	—	$	187	$	9,266

Schedule of Restructuring Reserve by Type of Cost

The following is a summary of the restructuring accruals recorded and charges incurred:

(amounts in thousands)
Balance as of January 1, 2023	$	5,038
Current period charges	6,915
Payments	(8,018)
Currency translation	50
Balance as of April 1, 2023	$	3,985

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Held for Sale (Tables)

3 Months Ended

Apr. 01, 2023

Discontinued Operations and Disposal Groups [Abstract]

Schedule of Accompanying Balance Sheet

The assets and liabilities included within the summary below are expected to be disposed of within the next twelve months and are included in assets held for sale and liabilities held for sale in the accompanying balance sheet. The results of Towanda will continue to be reported within our North America operations until the divestiture is finalized.

(amounts in thousands)	April 1, 2023		December 31, 2022
Assets
Inventory	$	16,749	$	16,592
Other current assets	192		110
Property and equipment	44,271		41,600
Intangible assets	1,472		1,471
Goodwill	65,000		65,000
Operating lease assets	850		975
Assets held for sale	$	128,534	$	125,748
Liabilities
Accrued payroll and benefits	$	983	$	852
Accrued expenses and other current liabilities	5,363		4,707
Current maturities of long term debt	—		1
Operating lease liability	341		480
Liabilities held for sale	$	6,687	$	6,040

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Other Income, Net (Tables)

3 Months Ended

Apr. 01, 2023

Other Income and Expenses [Abstract]

Schedule of Other Income, Net

The table below summarizes the amounts included in other income, net in the accompanying consolidated statements of operations:

	Three Months Ended
(amounts in thousands)	April 1, 2023		March 26, 2022
Foreign currency (gains) losses, net	$	(3,459)	$	1,711
Insurance reimbursement	(1,215)		—
Pension expense (income)	1,788		(1,427)
Recovery of cost from interest received on impaired notes	(1,394)		(7,027)
Governmental assistance	(147)		(65)
Other items	(845)		(529)
Total Other Income, Net	$	(5,272)	$	(7,337)

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Derivative Financial Instruments (Tables)

3 Months Ended

Apr. 01, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

The fair values of derivative instruments held are as follows:

	Derivative assets
(amounts in thousands)	Balance Sheet Location	April 1, 2023		December 31, 2022
Derivatives designated as hedging instruments:
Interest rate contracts	Other current assets	$	12,101	$	16,235
Derivatives not designated as hedging instruments:
Foreign currency forward contracts	Other current assets	$	4,472	$	3,809
Other derivative instruments	Other current assets	55		73

	Derivatives liabilities
(amounts in thousands)	Balance Sheet Location	April 1, 2023		December 31, 2022
Derivatives not designated as hedging instruments:
Foreign currency forward contracts	Accrued expenses and other current liabilities	$	2,174	$	3,058
Other derivative instruments	Accrued expenses and other current liabilities	190		288

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Fair Value of Financial Instruments (Tables)

3 Months Ended

Apr. 01, 2023

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The recorded carrying amounts and fair values of these instruments were as follows:

	April 1, 2023
(amounts in thousands)	Carrying Amount		Total Fair Value		Level 1		Level 2		Level 3
Assets:
Cash equivalents	$	1,714	$	1,714	$	—	$	1,714	$	—
Derivative assets, recorded in other current assets	16,628		16,628		—		16,628		—
Deferred compensation plan assets, recorded in other assets	1,157		1,157		—		1,157		—
Liabilities:
Debt, recorded in long-term debt and current maturities of long-term debt	$	1,761,191	$	1,657,803	$	—	$	1,657,803	$	—
Derivative liabilities, recorded in accrued expenses and other current liabilities	2,364		2,364		—		2,364		—

	December 31, 2022
(amounts in thousands)	Carrying Amount		Total Fair Value		Level 1		Level 2		Level 3
Assets:
Cash equivalents	$	6,078	$	6,078	$	—	$	6,078	$	—
Derivative assets, recorded in other current assets	20,117		20,117		—		20,117		—
Deferred compensation plan assets, recorded in other assets	725		725		—		725		—
Liabilities:
Debt, recorded in long-term debt and current maturities of long-term debt	$	1,759,226	$	1,555,367	$	—	$	1,555,367	$	—
Derivative liabilities, recorded in accrued expenses and other current assets	3,346		3,346		—		3,346		—

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Supplemental Cash Flow Information (Tables)

3 Months Ended

Apr. 01, 2023

Supplemental Cash Flow Elements [Abstract]

Schedule of Cash Flow, Supplemental Disclosures

	Three Months Ended
(amounts in thousands)	April 1, 2023		March 26, 2022
Cash Operating Activities:
Operating leases	$	16,490	$	15,203
Interest payments on financing lease obligations	42		43
Cash paid for amounts included in the measurement of lease liabilities	$	16,532	$	15,246
Cash Investing Activities:
Purchases of securities for deferred compensation plan	$	(420)	$	—
Sale of securities for deferred compensation plan	37		—
Change in securities for deferred compensation plan	$	(383)	$	—
Non-cash Investing Activities:
Property, equipment, and intangibles purchased in accounts payable	$	4,077	$	3,868
Property, equipment, and intangibles purchased with debt	869		1,423
Customer accounts receivable converted to notes receivable	38		—
Cash Financing Activities:
Borrowings on long-term debt	96,867		233,500
Payments of long-term debt	(96,526)		(122,877)
Change in long-term debt	$	341	$	110,623
Cash paid for amounts included in the measurement of finance lease liabilities	$	484	$	495
Non-cash Financing Activities:
Shares surrendered for tax obligations for employee share-based transactions in accrued liabilities	$	16	$	2,268
Shares repurchased in accounts payable	—		2,191
Accounts payable converted to installment notes	176		1,279
Other Supplemental Cash Flow Information:
Cash taxes paid, net of refunds	$	13,785	$	16,648
Cash interest paid	7,641		3,682

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Description of Company and Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2023	Mar. 26, 2022	Dec. 31, 2022	Dec. 31, 2020
Unusual or Infrequent Item, or Both [Line Items]
Deferred credits and other liabilities	$ 100,898		$ 97,898
Cares Act, Deferral of Social Security Tax
Unusual or Infrequent Item, or Both [Line Items]
Deferred credits and other liabilities				$ 20,900
Repayments of deferred credits and other liabilities	$ 11,000	$ 9,900

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Accounts Receivable (Details) - USD ($) $ in Thousands	Apr. 01, 2023	Mar. 26, 2022
Receivables [Abstract]
Allowance for credit losses	$ 18,100	$ 16,300

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Inventories (Details) - USD ($) $ in Thousands	Apr. 01, 2023	Dec. 31, 2022
Inventory Disclosure [Abstract]
Raw materials	$ 475,610	$ 511,681
Work in process	29,921	31,310
Finished goods	132,272	123,464
Total inventories	$ 637,803	$ 666,455

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Property and Equipment, Net - Summary (Details) - USD ($) $ in Thousands	Apr. 01, 2023	Dec. 31, 2022
Property, Plant and Equipment [Abstract]
Property and equipment	$ 2,151,549	$ 2,135,848
Accumulated depreciation	(1,393,407)	(1,373,362)
Property and equipment, net (Note 4)	$ 758,142	$ 762,486

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Property and Equipment, Net - Narrative (Details) - USD ($)	3 Months Ended
	Apr. 01, 2023	Mar. 26, 2022
Property, Plant and Equipment [Line Items]
Gain due to currency translations for foreign assets	$ 3,900,000
Property plant and equipment
Property, Plant and Equipment [Line Items]
Impairment of assets	$ 2,200,000	$ 0

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Property and Equipment, Net - Depreciation (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2023	Mar. 26, 2022
Depreciation
Total depreciation expense	$ 24,880	$ 24,220
Cost of sales
Depreciation
Total depreciation expense	22,916	22,512
Selling, general and administrative
Depreciation
Total depreciation expense	$ 1,964	$ 1,708

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Goodwill - Rollforward (Details) $ in Thousands	3 Months Ended
	Apr. 01, 2023 USD ($)
Goodwill
Beginning balance	$ 460,505
Currency translation	3,098
Ending balance	463,603
North America
Goodwill
Beginning balance	182,269
Currency translation	11
Ending balance	182,280
Europe
Goodwill
Beginning balance	199,684
Currency translation	3,889
Ending balance	203,573
Australasia
Goodwill
Beginning balance	78,552
Currency translation	(802)
Ending balance	$ 77,750

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Intangible Assets, Net - Cost and Accumulated Amortization (Details) - USD ($) $ in Thousands	Apr. 01, 2023	Dec. 31, 2022
Finite-Lived Intangible Assets
Cost	$ 356,108	$ 353,455
Accumulated Amortization	(169,377)	(161,350)
Net Book Value	186,731	192,105
Customer relationships and agreements
Finite-Lived Intangible Assets
Cost	138,964	137,914
Accumulated Amortization	(83,241)	(79,761)
Net Book Value	55,723	58,153
Software
Finite-Lived Intangible Assets
Cost	121,305	119,239
Accumulated Amortization	(46,461)	(43,208)
Net Book Value	74,844	76,031
Trademarks and trade names
Finite-Lived Intangible Assets
Cost	53,420	53,481
Accumulated Amortization	(13,153)	(12,563)
Net Book Value	40,267	40,918
Patents, licenses and rights
Finite-Lived Intangible Assets
Cost	42,419	42,821
Accumulated Amortization	(26,522)	(25,818)
Net Book Value	$ 15,897	$ 17,003

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Intangible Assets, Net - Amortization Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2023	Mar. 26, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 7,487	$ 8,145

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Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Apr. 01, 2023	Dec. 31, 2022	Mar. 26, 2022
Accounts Payable and Accrued Liabilities, Current
Accrued sales and advertising rebates	$ 76,652	$ 93,337
Current portion of operating lease liability	43,546	42,494
Non-income related taxes	31,076	25,700
Accrued expenses	24,032	18,423
Current portion of warranty liability (Note 8)	23,114	23,079	$ 23,387
Deferred revenue and customer deposits	23,104	24,753
Accrued freight	18,382	17,398
Accrued interest payable	17,508	4,038
Current portion of accrued claim costs relating to self-insurance programs	17,375	17,932
Accrued income taxes payable	9,900	12,848
Current portion of restructuring accrual (Note 15)	3,985	5,038
Legal claims provision	3,477	3,490
Current portion of derivative liability (Note 18)	2,364	3,346
Total accrued expenses and other current liabilities	$ 294,515	$ 291,876

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Warranty Liability - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2023	Dec. 31, 2022	Mar. 26, 2022	Dec. 31, 2021
Product Warranty Liability
Accrued warranty liability	$ 54,360	$ 54,337	$ 54,949	$ 54,860
North America
Product Warranty Liability
Accrued warranty liability	46,200
Product warranty, discount adjustment	$ 3,000
Minimum
Product Warranty Liability
Product warranty term	1 year
Minimum | North America
Product Warranty Liability
Product warranty discount rate (as a percent)	0.53%
Maximum
Product Warranty Liability
Product warranty term	10 years
Maximum | North America
Product Warranty Liability
Product warranty discount rate (as a percent)	3.00%

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Warranty Liability - Rollforward (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2023	Mar. 26, 2022	Dec. 31, 2022
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease)
Balance at beginning balance	$ 54,337	$ 54,860
Current period charges	7,240	7,151
Experience adjustments	539	684
Payments	(7,864)	(7,742)
Currency translation	108	(4)
Balance at period end	54,360	54,949
Current portion	(23,114)	(23,387)	$ (23,079)
Long-term portion	$ 31,246	$ 31,562

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Long-Term Debt - Long Term Debt (Details) $ in Thousands, kr in Millions	Apr. 01, 2023 USD ($)	Apr. 01, 2023 DKK (kr)	Dec. 31, 2022 USD ($)	Jul. 31, 2021 USD ($)
Debt Instrument
Total Debt	$ 1,761,191		$ 1,759,226
Unamortized debt issuance costs and original issue discounts	(10,841)		(11,597)
Current maturities of long-term debt	(29,109)		(34,391)
Long-term debt (Note 9)	1,721,241		1,713,238
Senior Secured Notes and Senior Notes
Debt Instrument
Long-term debt, gross	$ 1,050,000		1,050,000
Senior Secured Notes and Senior Notes | Minimum
Debt Instrument
Effective interest rate, percent	4.63%	4.63%
Senior Secured Notes and Senior Notes | Maximum
Debt Instrument
Effective interest rate, percent	6.25%	6.25%
Term loans | Term Loan
Debt Instrument
Long-term debt, gross	$ 540,572		541,970
Unamortized debt issuance costs and original issue discounts				$ (1,000)
Term loans | Term Loan | Minimum
Debt Instrument
Effective interest rate, percent	1.30%	1.30%
Term loans | Term Loan | Maximum
Debt Instrument
Effective interest rate, percent	7.09%	7.09%
Revolving credit facilities | ABL Facility
Debt Instrument
Long-term debt, gross	$ 63,000		55,000
Revolving credit facilities | ABL Facility | Minimum
Debt Instrument
Effective interest rate, percent	5.93%	5.93%
Revolving credit facilities | ABL Facility | Maximum
Debt Instrument
Effective interest rate, percent	8.25%	8.25%
Finance leases and other financing arrangements
Debt Instrument
Finance leases and other financing arrangements	$ 84,995		89,784
Finance leases and other financing arrangements | Minimum
Debt Instrument
Finance lease, rate	1.25%	1.25%
Finance leases and other financing arrangements | Maximum
Debt Instrument
Finance lease, rate	7.16%	7.16%
Mortgage notes
Debt Instrument
Long-term debt, gross	$ 22,600	kr 154.6	$ 22,472
Mortgage notes | Minimum
Debt Instrument
Effective interest rate, percent	4.62%	4.62%
Mortgage notes | Maximum
Debt Instrument
Effective interest rate, percent	5.12%	5.12%

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Long-Term Debt - Narrative (Details) kr in Millions		1 Months Ended
	Jun. 30, 2019 AUD ($)	Dec. 31, 2021	Jul. 31, 2021 USD ($)	May 31, 2020 AUD ($)	Dec. 31, 2007	Apr. 01, 2023 USD ($)	Apr. 01, 2023 AUD ($)	Apr. 01, 2023 DKK (kr)	Dec. 31, 2022 USD ($)	May 31, 2020 USD ($)	Dec. 31, 2017 USD ($) tranche
Debt Instrument
Unamortized debt issuance costs and original issue discounts						$ 10,841,000			$ 11,597,000
Interest Rate Swap | Cash flow hedge | Designated as Hedging Instrument
Debt Instrument
Derivative fixed interest rate (as a percent)										0.395%
Notional amount										$ 370,000,000
LIBOR | Minimum | Interest Rate Swap | Cash flow hedge | Designated as Hedging Instrument
Debt Instrument
Derivative variable interest rate (as a percent)										0.00%
Revolving Credit Facility
Debt Instrument
Borrowing availability						$ 416,300,000
U.S. Facility | Secured Debt
Debt Instrument
Debt instrument face amount			$ 550,000,000
U.S. Facility | Secured Debt | Corporate Credit Rating
Debt Instrument
Derivative variable interest rate (as a percent)			0.00%
U.S. Facility | Secured Debt | Corporate Credit Rating | Minimum
Debt Instrument
Debt instrument, variable rate, percent			2.00%
U.S. Facility | Secured Debt | Corporate Credit Rating | Maximum
Debt Instrument
Debt instrument, variable rate, percent			2.25%
ABL Facility | Revolving Credit Facility
Debt Instrument
Derivative variable interest rate (as a percent)						0.00%	0.00%	0.00%
Maximum borrowing capacity			$ 500,000,000
ABL Facility | Revolving Credit Facility | US Borrowers
Debt Instrument
Maximum borrowing capacity			465,000,000
ABL Facility | Revolving Credit Facility | Canadian Borrowers
Debt Instrument
Maximum borrowing capacity			$ 35,000,000
ABL Facility | Revolving Credit Facility | LIBOR | Minimum
Debt Instrument
Debt instrument, variable rate, percent			1.25%
ABL Facility | Revolving Credit Facility | LIBOR | Maximum
Debt Instrument
Debt instrument, variable rate, percent			1.50%
ABL Facility | Revolving Credit Facility | Base Rate | Minimum
Debt Instrument
Debt instrument, variable rate, percent			0.25%
ABL Facility | Revolving Credit Facility | Base Rate | Maximum
Debt Instrument
Debt instrument, variable rate, percent			0.50%
Senior Secured Notes and Senior Notes
Debt Instrument
Debt instrument face amount											$ 800,000,000
Number of tranches (in tranches) | tranche											2
Long-term debt						$ 1,050,000,000			1,050,000,000
Senior Secured Notes and Senior Notes | Senior Secured Notes Maturing May 2025
Debt Instrument
Senior secured notes										$ 250,000,000
Debt instrument stated interest rate, percent										6.25%
Debt instrument discount rate, percent										1.25%
Senior Secured Notes and Senior Notes | Senior Note Maturing December 2025
Debt Instrument
Debt instrument stated interest rate, percent											4.63%
Debt instrument face amount											$ 400,000,000
Senior Secured Notes and Senior Notes | Senior Note Maturing December 2027
Debt Instrument
Debt instrument stated interest rate, percent											4.88%
Debt instrument face amount											$ 400,000,000
Secured Debt
Debt Instrument
Long-term debt						22,600,000		kr 154.6	22,472,000
Debt instrument term					30 years
Term Loans | Term Loan
Debt Instrument
Premium payable percentage			1.00%
Repayment percentage			0.25%
Loss on extinguishment of debt			$ 1,300,000
Unamortized debt issuance costs and original issue discounts			1,000,000
Long term debt principal amount outstanding			$ 548,600,000			539,300,000
Long-term debt						540,572,000			541,970,000
Term Loans | Amended Floating Rate Revolving Loan Facility | Secured Debt
Debt Instrument
Increase in borrowing capacity				$ 30,000,000
Term Loans | Finance Leases and Other Financing Arrangements
Debt Instrument
Present value of lease liability						85,000,000
Line of Credit | ABL Facility
Debt Instrument
Long-term debt						63,000,000			$ 55,000,000
Line of Credit | ABL Facility | Revolving Credit Facility
Debt Instrument
Letters of credit						31,400,000
Borrowing availability						401,200,000
Line of Credit | Australia Senior Secured Credit Facility | Interchangeable Facility
Debt Instrument
Maximum borrowing capacity	$ 35,000,000
Borrowing availability						$ 15,100,000	$ 22,500,000
Line fee, percentage	0.50%	0.50%		0.70%

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Income Taxes (Details) - USD ($)	3 Months Ended
	Apr. 01, 2023	Mar. 26, 2022	Dec. 31, 2022
Income Tax Disclosure [Abstract]
Effective tax rate (as a percent)	29.10%	26.30%
Income tax expense (benefit)	$ 6,212,000	$ (188,000)
Discrete adjustments	1,000,000
Increase for tax positions taken during the prior period	1,200,000
Adjustments of comprised primarily tax	200,000
Unrecognized tax benefits	31,500,000		$ 29,300,000
Additional deferred tax expense	$ 0

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Segment Information - Narrative (Details)	3 Months Ended
	Apr. 01, 2023 segment
Segment Reporting [Abstract]
Number of reportable segments (in segments)	3

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Segment Information - Reportable Segment (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2023	Mar. 26, 2022
Segment Reporting Information [Line Items]
Net revenues	$ 1,222,617	$ 1,171,022
Net income (loss)	15,134	(528)
Income tax expense (benefit)	6,212	(188)
Depreciation and amortization	32,790	32,565
Interest expense, net	21,221	18,354
Restructuring and asset related charges (Note 15)	9,266	1
Other restructuring associated costs and asset related charges, net	4,936
Net other special items	8,912	30,045
Adjusted EBITDA	93,535	80,249
North America
Segment Reporting Information [Line Items]
Net revenues	768,033	722,343
Europe
Segment Reporting Information [Line Items]
Net revenues	312,489	323,272
Australasia
Segment Reporting Information [Line Items]
Net revenues	142,095	125,407
Operating Segments
Segment Reporting Information [Line Items]
Net revenues	1,226,413	1,176,310
Net income (loss)	47,865	39,454
Income tax expense (benefit)	18,296	3,402
Depreciation and amortization	29,678	29,421
Interest expense, net	3,831	3,946
Restructuring and asset related charges (Note 15)	9,079	22
Net other special items	681	15,910
Adjusted EBITDA	109,430	92,155
Operating Segments | North America
Segment Reporting Information [Line Items]
Net revenues	768,122	722,571
Net income (loss)	35,249	38,068
Income tax expense (benefit)	14,533	1,008
Depreciation and amortization	17,798	16,685
Interest expense, net	2,834	1,127
Restructuring and asset related charges (Note 15)	7,812	0
Other restructuring associated costs and asset related charges, net	4,756
Net other special items	972	10,197
Adjusted EBITDA	79,198	67,085
Operating Segments | Europe
Segment Reporting Information [Line Items]
Net revenues	312,621	323,306
Net income (loss)	7,299	(631)
Income tax expense (benefit)	1,415	1,398
Depreciation and amortization	7,433	7,892
Interest expense, net	128	1,805
Restructuring and asset related charges (Note 15)	1,267	0
Net other special items	95	4,234
Adjusted EBITDA	17,637	14,698
Operating Segments | Australasia
Segment Reporting Information [Line Items]
Net revenues	145,670	130,433
Net income (loss)	5,317	2,017
Income tax expense (benefit)	2,348	996
Depreciation and amortization	4,447	4,844
Interest expense, net	869	1,014
Restructuring and asset related charges (Note 15)	0	22
Other restructuring associated costs and asset related charges, net	0
Net other special items	(386)	1,479
Adjusted EBITDA	12,595	10,372
Intersegment net revenues
Segment Reporting Information [Line Items]
Net revenues	(3,796)	(5,288)
Intersegment net revenues | North America
Segment Reporting Information [Line Items]
Net revenues	(89)	(228)
Intersegment net revenues | Europe
Segment Reporting Information [Line Items]
Net revenues	(132)	(34)
Intersegment net revenues | Australasia
Segment Reporting Information [Line Items]
Net revenues	(3,575)	(5,026)
Corporate and Unallocated Costs
Segment Reporting Information [Line Items]
Net revenues	0	0
Net income (loss)	(32,731)	(39,982)
Income tax expense (benefit)	(12,084)	(3,590)
Depreciation and amortization	3,112	3,144
Interest expense, net	17,390	14,408
Restructuring and asset related charges (Note 15)	187	(21)
Other restructuring associated costs and asset related charges, net	0
Net other special items	8,231	14,135
Adjusted EBITDA	$ (15,895)	$ (11,906)

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Segment Information - Reconciliation of Net Income (Loss) to EBITDA (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2023	Mar. 26, 2022
Segment Reporting [Abstract]
Net income (loss)	$ 15,134	$ (528)
Income tax expense (benefit)	6,212	(188)
Depreciation and amortization	32,790	32,565
Interest expense, net	21,221	18,354
Special items:
Legal and professional expenses and settlements	1,822	1,916
Restructuring and asset related charges	9,266	1
Facility closure, consolidation, and other related costs and adjustments	1,347	132
M&A related costs	4,550	3,270
Share-based compensation expense	4,383	9,664
Non-cash foreign exchange transaction/translation (income) loss(6)	(3,066)	6,218
Other Special Items	(124)	8,845
Adjusted EBITDA	$ 93,535	80,249
Miscellaneous cost		$ 6,900

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Capital Stock (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 26, 2022	Apr. 01, 2023	Dec. 31, 2022	Jul. 28, 2022	Jul. 27, 2021
Class of Stock
Shares held in employee trust (in shares)		193,941	193,941
Shares held in employee trust		$ 12.4	$ 12.4
Share authorized for repurchase				$ 200.0	$ 400.0
Common stock
Class of Stock
Common shares repurchased (in shares)	1,777,266
Common shares repurchased (usd per share)	$ 23.26

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Earnings Per Share - Basic and Diluted Income Per Share Calculations (Details) - shares	3 Months Ended
	Apr. 01, 2023	Mar. 26, 2022
Earnings Per Share [Abstract]
Weighted average outstanding shares of Common Stock basic (in shares)	84,598,945	89,802,974
Restricted stock units and options to purchase Common Stock (in shares)	550,143	0
Weighted average outstanding shares of Common Stock diluted (in shares)	85,149,088	89,802,974

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Earnings Per Share - Potentially Dilutive Securities (Details) - shares	3 Months Ended
	Apr. 01, 2023	Mar. 26, 2022
Common Stock options
Incremental Weighted Average Shares Attributable to Dilutive Effect
Antidilutive securities excluded from computation of diluted earnings per share (in shares)	1,669,638	1,668,613
Restricted stock units
Incremental Weighted Average Shares Attributable to Dilutive Effect
Antidilutive securities excluded from computation of diluted earnings per share (in shares)	782,751	1,086,958
Performance share units
Incremental Weighted Average Shares Attributable to Dilutive Effect
Antidilutive securities excluded from computation of diluted earnings per share (in shares)	192,940	390,084

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Stock Compensation - Activity (Details) - $ / shares	3 Months Ended
	Apr. 01, 2023	Mar. 26, 2022
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Options granted (in shares)	235,892	310,554
Options canceled (in shares)	7,395	37,770
Options exercised (in shares)	0	66,946
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Options granted (usd per share)	$ 13.29	$ 24.17
Options canceled (usd per share)	26.33	28.57
Options exercised (usd per share)	$ 0	$ 12.55
RSUs
Weighted Average Grant-Date Fair Value Per Share
Equity instruments granted (in shares)	1,336,005	845,395
Equity instruments granted, weighted average exercise price (usd per share)	$ 13.21	$ 24.18
PSU's
Weighted Average Grant-Date Fair Value Per Share
Equity instruments granted (in shares)	292,064	158,587
Equity instruments granted, weighted average exercise price (usd per share)	$ 17.36	$ 29.24

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Stock Compensation - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Apr. 01, 2023	Mar. 26, 2022
Share-based Compensation Arrangement by Share-based Payment Award
Stock-based compensation	$ 4.4	$ 9.7
Performance share units
Share-based Compensation Arrangement by Share-based Payment Award
Stock compensation not yet recognized	$ 27.7
Recognition period for stock compensation not yet recognized	1 year 10 months 6 days

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Restructuring and Asset Related Charges - Impairment by Segment (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2023	Mar. 26, 2022
Restructuring Cost and Reserve
Restructuring charges	$ 4,330
Other restructuring associated costs	2,765
Asset related charges	2,171
Other restructuring associated costs and asset related charges	4,936
Total restructuring and asset related charges	9,266	$ 1
Operating Segments
Restructuring Cost and Reserve
Total restructuring and asset related charges	9,079	22
Operating Segments | North America
Restructuring Cost and Reserve
Restructuring charges	3,056
Other restructuring associated costs	2,585
Asset related charges	2,171
Other restructuring associated costs and asset related charges	4,756
Total restructuring and asset related charges	7,812	0
Operating Segments | Europe
Restructuring Cost and Reserve
Restructuring charges	1,087
Other restructuring associated costs	180
Asset related charges	0
Other restructuring associated costs and asset related charges	180
Total restructuring and asset related charges	1,267
Operating Segments | Australasia
Restructuring Cost and Reserve
Restructuring charges	0
Other restructuring associated costs	0
Asset related charges	0
Other restructuring associated costs and asset related charges	0
Total restructuring and asset related charges	0	22
Corporate and Unallocated Costs
Restructuring Cost and Reserve
Restructuring charges	187
Other restructuring associated costs	0
Asset related charges	0
Other restructuring associated costs and asset related charges	0
Total restructuring and asset related charges	$ 187	$ (21)

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Restructuring and Asset Related Charges - Restructuring Accrual (Details) $ in Thousands	3 Months Ended
	Apr. 01, 2023 USD ($)
Restructuring Reserve
Restructuring reserve, beginning balance	$ 5,038
Current period charges	6,915
Payments	(8,018)
Currency translation	50
Restructuring reserve, ending balance	$ 3,985

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Restructuring and Asset Related Charges - Narrative (Details) - USD ($) $ in Thousands		2 Months Ended	3 Months Ended
	Jan. 26, 2023	Apr. 01, 2023	Apr. 01, 2023	Mar. 26, 2022
Restructuring Cost and Reserve
Capital expenditures			$ 4,077	$ 3,868
Footprint And Operational Efficiencies
Restructuring Cost and Reserve
Restructuring expenses	$ 19,300	$ 8,100
Capital expenditures	$ 3,000
Restructuring expected cost		$ 15,000	15,000
Restructuring cost incurred, cash outlay			$ 3,200

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Held for Sale (Details) - USD ($) $ in Thousands	Apr. 01, 2023	Dec. 31, 2022
Liabilities
Liabilities held for sale	$ 6,687	$ 6,040
Disposal Group, Held-for-sale, Not Discontinued Operations | Towanda
Assets
Inventory	16,749	16,592
Other current assets	192	110
Property and equipment	44,271	41,600
Intangible assets	1,472	1,471
Goodwill	65,000	65,000
Operating lease assets	850	975
Assets held for sale	128,534	125,748
Liabilities
Accrued payroll and benefits	983	852
Accrued expenses and other current liabilities	5,363	4,707
Current maturities of long term debt	0	1
Operating lease liability	341	480
Liabilities held for sale	$ 6,687	$ 6,040

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Other Income, Net- Other Income, Net (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2023	Mar. 26, 2022
Other Income and Expenses [Abstract]
Foreign currency (gains) losses, net	$ (3,459)	$ 1,711
Insurance reimbursement	(1,215)	0
Pension expense (income)	1,788	(1,427)
Recovery of cost from interest received on impaired notes	(1,394)	(7,027)
Governmental assistance	(147)	(65)
Other items	(845)	(529)
Total Other Income, Net	$ (5,272)	$ (7,337)

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Derivative Financial Instruments - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Apr. 01, 2023	Mar. 26, 2022	May 31, 2020
Notional Disclosures
Realized gain (loss) on hedges	$ (0.3)	$ 8.9
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax	Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax
Amount expected to be reclassified to interest income over the next twelve months	$ 12.1
Foreign Exchange Contracts, Forecasted Transactions | Not Designated as Hedging Instrument
Notional Disclosures
Notional amount	97.3
Foreign Exchange Contracts, Consolidated Earnings | Not Designated as Hedging Instrument
Notional Disclosures
Notional amount	112.1
Foreign Currency Forward Contracts | Not Designated as Hedging Instrument
Notional Disclosures
Realized gain (loss) on hedges	1.5	$ (1.3)
Interest Rate Swap | Designated as Hedging Instrument | Cash flow hedge
Notional Disclosures
Notional amount			$ 370.0
Derivative fixed interest rate (as a percent)			0.395%
Gains (losses) reclassified	$ 3.8	$ (0.2)
Interest Rate Swap | Designated as Hedging Instrument | Cash flow hedge | Minimum | LIBOR
Notional Disclosures
Derivative variable interest rate (as a percent)			0.00%

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Derivative Financial Instruments - Fair Value (Details) - USD ($) $ in Thousands	Apr. 01, 2023	Dec. 31, 2022
Derivatives designated as hedging instruments: | Interest rate contracts | Other current assets
Derivative Asset, Fair Value, Amount Not Offset Against Collateral
Derivative assets	$ 12,101	$ 16,235
Derivatives not designated as hedging instruments: | Foreign currency forward contracts | Other current assets
Derivative Asset, Fair Value, Amount Not Offset Against Collateral
Derivative assets	4,472	3,809
Derivatives not designated as hedging instruments: | Foreign currency forward contracts | Accrued expenses and other current liabilities
Derivative Asset, Fair Value, Amount Not Offset Against Collateral
Derivatives liabilities	2,174	3,058
Derivatives not designated as hedging instruments: | Other derivative instruments | Other current assets
Derivative Asset, Fair Value, Amount Not Offset Against Collateral
Derivative assets	55	73
Derivatives not designated as hedging instruments: | Other derivative instruments | Accrued expenses and other current liabilities
Derivative Asset, Fair Value, Amount Not Offset Against Collateral
Derivatives liabilities	$ 190	$ 288

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Fair Value of Financial Instruments - Financial Assets and Liabilities (Details) - USD ($) $ in Thousands	Apr. 01, 2023	Dec. 31, 2022
Assets:
Derivative Asset, Current, Statement of Financial Position [Extensible Enumeration]	Other current assets	Other current assets
Liabilities:
Derivative liabilities, recorded in accrued expenses and other current liabilities	$ 2,364	$ 3,346
Derivative Liability, Current, Statement of Financial Position [Extensible Enumeration]	Accrued expenses and other current liabilities (Note 7)	Accrued expenses and other current liabilities (Note 7)
Carrying Amount | Recurring
Assets:
Cash equivalents	$ 1,714	$ 6,078
Derivative assets, recorded in other current assets	16,628	20,117
Deferred compensation plan assets, recorded in other assets	1,157	725
Liabilities:
Debt, recorded in long-term debt and current maturities of long-term debt	1,761,191	1,759,226
Derivative liabilities, recorded in accrued expenses and other current liabilities	2,364	3,346
Total Fair Value | Recurring
Assets:
Cash equivalents	1,714	6,078
Derivative assets, recorded in other current assets	16,628	20,117
Deferred compensation plan assets, recorded in other assets	1,157	725
Liabilities:
Debt, recorded in long-term debt and current maturities of long-term debt	1,657,803	1,555,367
Derivative liabilities, recorded in accrued expenses and other current liabilities	2,364	3,346
Total Fair Value | Recurring | Level 1
Assets:
Cash equivalents	0	0
Derivative assets, recorded in other current assets	0	0
Deferred compensation plan assets, recorded in other assets	0	0
Liabilities:
Debt, recorded in long-term debt and current maturities of long-term debt	0	0
Derivative liabilities, recorded in accrued expenses and other current liabilities	0	0
Total Fair Value | Recurring | Level 2
Assets:
Cash equivalents	1,714	6,078
Derivative assets, recorded in other current assets	16,628	20,117
Deferred compensation plan assets, recorded in other assets	1,157	725
Liabilities:
Debt, recorded in long-term debt and current maturities of long-term debt	1,657,803	1,555,367
Derivative liabilities, recorded in accrued expenses and other current liabilities	2,364	3,346
Total Fair Value | Recurring | Level 3
Assets:
Cash equivalents	0	0
Derivative assets, recorded in other current assets	0	0
Deferred compensation plan assets, recorded in other assets	0	0
Liabilities:
Debt, recorded in long-term debt and current maturities of long-term debt	0	0
Derivative liabilities, recorded in accrued expenses and other current liabilities	$ 0	$ 0

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Commitments and Contingencies (Details) - USD ($) $ in Thousands									1 Months Ended	3 Months Ended
	Nov. 03, 2021	Apr. 20, 2021	Sep. 04, 2020	Aug. 31, 2020	Nov. 19, 2019	Apr. 12, 2019	Mar. 13, 2019	May 11, 2018	Feb. 28, 2018	Apr. 01, 2023	Dec. 31, 2022	Dec. 31, 2021
Loss Contingencies
Legal settlement income										$ 10,500
Accrued self-insurance liability										92,000	$ 92,600
Financing bonds and letters of credit										$ 67,600	$ 67,600
Environmental Loss Contingency, Current, Statement of Financial Position [Extensible Enumeration]										Accrued expenses and other current liabilities (Note 7)	Accrued expenses and other current liabilities (Note 7)
Environmental loss contingencies, current										$ 500	$ 500
Environmental Loss Contingency, Noncurrent, Statement of Financial Position [Extensible Enumeration]										Deferred credits and other liabilities	Deferred credits and other liabilities
Environmental loss contingencies, non-current										$ 11,800	$ 11,800
Preferred remedial alternatives totaling												$ 23,400
PaDEP
Loss Contingencies
Collateralized bond										$ 1,400
Minimum
Loss Contingencies
Indemnification										1 year
Environmental remedial feasibility alternative												11,800
Minimum | Domestic Product Liability
Loss Contingencies
Concentration risk, auto, employee and general liability										$ 5,000
Minimum | Auto, General Liability, Personal Injury and Workers Compensation
Loss Contingencies
Concentration risk, auto, employee and general liability										$ 3,000
Maximum
Loss Contingencies
Indemnification										3 years
Environmental remedial feasibility alternative												$ 33,400
Maximum | Domestic Product Liability
Loss Contingencies
Concentration risk, auto, employee and general liability										$ 200,000
Maximum | Auto, General Liability, Personal Injury and Workers Compensation
Loss Contingencies
Concentration risk, auto, employee and general liability										$ 200,000
Steve and Sons
Loss Contingencies
Damages awarded to plaintiff					$ 7,100		$ 36,500
Settlement proceeds awarded								$ 1,200
Steve and Sons | Attorney Fees
Loss Contingencies
Damages sought						$ 28,400
Steve and Sons | Legal Cost
Loss Contingencies
Damages sought						$ 1,700
Direct Purchaser Action
Loss Contingencies
Damages sought				$ 30,800
Indirect Purchaser Action
Loss Contingencies
Damages sought			$ 9,750
Past Damages | Steve and Sons
Loss Contingencies
Damages awarded to plaintiff							9,900		$ 12,200
Future Damages | Steve and Sons
Loss Contingencies
Damages awarded to plaintiff							$ 139,400		$ 46,500
Loss contingency accrual, payments	$ 66,400
Preliminary Court Approval
Loss Contingencies
Settlement, amount awarded to other party		$ 39,500
Loss contingency accrual		$ 5,000

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Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2023	Mar. 26, 2022
Cash Operating Activities:
Operating leases	$ 16,490	$ 15,203
Interest payments on financing lease obligations	42	43
Cash paid for amounts included in the measurement of lease liabilities	16,532	15,246
Cash Investing Activities:
Purchases of securities for deferred compensation plan	(420)	0
Sale of securities for deferred compensation plan	37	0
Change in securities for deferred compensation plan	(383)	0
Non-cash Investing Activities:
Property, equipment, and intangibles purchased in accounts payable	4,077	3,868
Property, equipment, and intangibles purchased with debt	869	1,423
Customer accounts receivable converted to notes receivable	38	0
Cash Financing Activities:
Borrowings on long-term debt	96,867	233,500
Payments of long-term debt	(96,526)	(122,877)
Change in long-term debt	341	110,623
Cash paid for amounts included in the measurement of finance lease liabilities	484	495
Non-cash Financing Activities:
Shares surrendered for tax obligations for employee share-based transactions in accrued liabilities	16	2,268
Shares repurchased in accounts payable	0	2,191
Accounts payable converted to installment notes	176	1,279
Other Supplemental Cash Flow Information:
Cash taxes paid, net of refunds	13,785	16,648
Cash interest paid	$ 7,641	$ 3,682

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Subsequent Events (Details) - Subsequent event $ in Millions	Apr. 17, 2023 AUD ($) $ / $	Apr. 18, 2023 AUD ($) $ / $
Subsequent Event
Sales price	$ 230.0
Forward contracts to sell a total		$ 420.0
Aristotle Holding III Pty Limited
Subsequent Event
Purchase price	$ 688.0
Minimum
Subsequent Event
Exchange rate (in USD per AUD) | $ / $	0.6726	0.6751
Maximum
Subsequent Event
Exchange rate (in USD per AUD) | $ / $	0.6749	0.6759