0000883902-21-000055.txt : 20211109 0000883902-21-000055.hdr.sgml : 20211109 20211109171235 ACCESSION NUMBER: 0000883902-21-000055 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 102 CONFORMED PERIOD OF REPORT: 20211002 FILED AS OF DATE: 20211109 DATE AS OF CHANGE: 20211109 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Cornerstone Building Brands, Inc. CENTRAL INDEX KEY: 0000883902 STANDARD INDUSTRIAL CLASSIFICATION: PREFABRICATED METAL BUILDINGS & COMPONENTS [3448] IRS NUMBER: 760127701 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-14315 FILM NUMBER: 211393221 BUSINESS ADDRESS: STREET 1: 5020 WESTON PARKWAY STREET 2: SUITE 400 CITY: CARY STATE: NC ZIP: 27513 BUSINESS PHONE: (888) 975-9436 MAIL ADDRESS: STREET 1: 5020 WESTON PARKWAY STREET 2: SUITE 400 CITY: CARY STATE: NC ZIP: 27513 FORMER COMPANY: FORMER CONFORMED NAME: NCI BUILDING SYSTEMS INC DATE OF NAME CHANGE: 19930328 FORMER COMPANY: FORMER CONFORMED NAME: NATIONAL COMPONENTS INCORPORATED DATE OF NAME CHANGE: 19600201 10-Q 1 cnr-20211002.htm 10-Q cnr-20211002
0000883902--12-312021Q3FALSEP3YP3YP3Y00008839022021-01-012021-10-02xbrli:shares00008839022021-11-02iso4217:USD00008839022021-07-042021-10-0200008839022020-07-052020-10-0300008839022020-01-012020-10-03iso4217:USDxbrli:shares00008839022021-10-0200008839022020-12-310000883902cnr:ABLCreditFacilityDue2023Member2021-01-012021-10-020000883902cnr:ABLCreditFacilityDue2023Member2020-01-012020-10-030000883902cnr:CashFlowRevolverDueApril2023Member2021-01-012021-10-020000883902cnr:CashFlowRevolverDueApril2023Member2020-01-012020-10-0300008839022019-12-3100008839022020-10-030000883902us-gaap:CommonStockMember2021-07-030000883902us-gaap:AdditionalPaidInCapitalMember2021-07-030000883902us-gaap:RetainedEarningsMember2021-07-030000883902us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-07-030000883902us-gaap:TreasuryStockMember2021-07-0300008839022021-07-030000883902us-gaap:TreasuryStockMember2021-07-042021-10-020000883902us-gaap:CommonStockMember2021-07-042021-10-020000883902us-gaap:AdditionalPaidInCapitalMember2021-07-042021-10-020000883902us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-07-042021-10-020000883902us-gaap:RetainedEarningsMember2021-07-042021-10-020000883902us-gaap:CommonStockMember2021-10-020000883902us-gaap:AdditionalPaidInCapitalMember2021-10-020000883902us-gaap:RetainedEarningsMember2021-10-020000883902us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-10-020000883902us-gaap:TreasuryStockMember2021-10-020000883902us-gaap:CommonStockMember2020-07-040000883902us-gaap:AdditionalPaidInCapitalMember2020-07-040000883902us-gaap:RetainedEarningsMember2020-07-040000883902us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-07-040000883902us-gaap:TreasuryStockMember2020-07-0400008839022020-07-040000883902us-gaap:TreasuryStockMember2020-07-052020-10-030000883902us-gaap:CommonStockMember2020-07-052020-10-030000883902us-gaap:AdditionalPaidInCapitalMember2020-07-052020-10-030000883902us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-07-052020-10-030000883902us-gaap:RetainedEarningsMember2020-07-052020-10-030000883902us-gaap:CommonStockMember2020-10-030000883902us-gaap:AdditionalPaidInCapitalMember2020-10-030000883902us-gaap:RetainedEarningsMember2020-10-030000883902us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-10-030000883902us-gaap:TreasuryStockMember2020-10-030000883902us-gaap:CommonStockMember2020-12-310000883902us-gaap:AdditionalPaidInCapitalMember2020-12-310000883902us-gaap:RetainedEarningsMember2020-12-310000883902us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310000883902us-gaap:TreasuryStockMember2020-12-310000883902us-gaap:TreasuryStockMember2021-01-012021-10-020000883902us-gaap:CommonStockMember2021-01-012021-10-020000883902us-gaap:AdditionalPaidInCapitalMember2021-01-012021-10-020000883902us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-10-020000883902us-gaap:RetainedEarningsMember2021-01-012021-10-020000883902us-gaap:CommonStockMember2019-12-310000883902us-gaap:AdditionalPaidInCapitalMember2019-12-310000883902us-gaap:RetainedEarningsMember2019-12-310000883902us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-12-310000883902us-gaap:TreasuryStockMember2019-12-310000883902us-gaap:TreasuryStockMember2020-01-012020-10-030000883902us-gaap:CommonStockMember2020-01-012020-10-030000883902us-gaap:AdditionalPaidInCapitalMember2020-01-012020-10-030000883902us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-01-012020-10-030000883902us-gaap:RetainedEarningsMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2019-12-310000883902srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2019-12-310000883902us-gaap:RetainedEarningsMember2020-01-012020-10-030000883902srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2020-12-310000883902cnr:VinylMembercnr:WindowsSegmentMember2021-07-042021-10-020000883902cnr:VinylMembercnr:WindowsSegmentMember2020-07-052020-10-030000883902cnr:VinylMembercnr:WindowsSegmentMember2021-01-012021-10-020000883902cnr:VinylMembercnr:WindowsSegmentMember2020-01-012020-10-030000883902cnr:AluminumWindowsMembercnr:WindowsSegmentMember2021-07-042021-10-020000883902cnr:AluminumWindowsMembercnr:WindowsSegmentMember2020-07-052020-10-030000883902cnr:AluminumWindowsMembercnr:WindowsSegmentMember2021-01-012021-10-020000883902cnr:AluminumWindowsMembercnr:WindowsSegmentMember2020-01-012020-10-030000883902cnr:WindowsSegmentMembercnr:OtherProductsAndServicesMember2021-07-042021-10-020000883902cnr:WindowsSegmentMembercnr:OtherProductsAndServicesMember2020-07-052020-10-030000883902cnr:WindowsSegmentMembercnr:OtherProductsAndServicesMember2021-01-012021-10-020000883902cnr:WindowsSegmentMembercnr:OtherProductsAndServicesMember2020-01-012020-10-030000883902cnr:WindowsSegmentMember2021-07-042021-10-020000883902cnr:WindowsSegmentMember2020-07-052020-10-030000883902cnr:WindowsSegmentMember2021-01-012021-10-020000883902cnr:WindowsSegmentMember2020-01-012020-10-030000883902cnr:VinylSidingMembercnr:SidingSegmentMember2021-07-042021-10-020000883902cnr:VinylSidingMembercnr:SidingSegmentMember2020-07-052020-10-030000883902cnr:VinylSidingMembercnr:SidingSegmentMember2021-01-012021-10-020000883902cnr:VinylSidingMembercnr:SidingSegmentMember2020-01-012020-10-030000883902cnr:SidingSegmentMembercnr:MetalMember2021-07-042021-10-020000883902cnr:SidingSegmentMembercnr:MetalMember2020-07-052020-10-030000883902cnr:SidingSegmentMembercnr:MetalMember2021-01-012021-10-020000883902cnr:SidingSegmentMembercnr:MetalMember2020-01-012020-10-030000883902cnr:SidingSegmentMembercnr:InjectionMoldedMember2021-07-042021-10-020000883902cnr:SidingSegmentMembercnr:InjectionMoldedMember2020-07-052020-10-030000883902cnr:SidingSegmentMembercnr:InjectionMoldedMember2021-01-012021-10-020000883902cnr:SidingSegmentMembercnr:InjectionMoldedMember2020-01-012020-10-030000883902cnr:StoneMembercnr:SidingSegmentMember2021-07-042021-10-020000883902cnr:StoneMembercnr:SidingSegmentMember2020-07-052020-10-030000883902cnr:StoneMembercnr:SidingSegmentMember2021-01-012021-10-020000883902cnr:StoneMembercnr:SidingSegmentMember2020-01-012020-10-030000883902cnr:SidingSegmentMembercnr:OtherProductsAndServicesMember2021-07-042021-10-020000883902cnr:SidingSegmentMembercnr:OtherProductsAndServicesMember2020-07-052020-10-030000883902cnr:SidingSegmentMembercnr:OtherProductsAndServicesMember2021-01-012021-10-020000883902cnr:SidingSegmentMembercnr:OtherProductsAndServicesMember2020-01-012020-10-030000883902cnr:SidingSegmentMember2021-07-042021-10-020000883902cnr:SidingSegmentMember2020-07-052020-10-030000883902cnr:SidingSegmentMember2021-01-012021-10-020000883902cnr:SidingSegmentMember2020-01-012020-10-030000883902cnr:MetalBuildingProductsMembercnr:CommercialSegmentMember2021-07-042021-10-020000883902cnr:MetalBuildingProductsMembercnr:CommercialSegmentMember2020-07-052020-10-030000883902cnr:MetalBuildingProductsMembercnr:CommercialSegmentMember2021-01-012021-10-020000883902cnr:MetalBuildingProductsMembercnr:CommercialSegmentMember2020-01-012020-10-030000883902cnr:CommercialSegmentMembercnr:InsulatedMetalPanelsMember2021-07-042021-10-020000883902cnr:CommercialSegmentMembercnr:InsulatedMetalPanelsMember2020-07-052020-10-030000883902cnr:CommercialSegmentMembercnr:InsulatedMetalPanelsMember2021-01-012021-10-020000883902cnr:CommercialSegmentMembercnr:InsulatedMetalPanelsMember2020-01-012020-10-030000883902cnr:CommercialSegmentMembercnr:MetalCoilCoatingMember2021-07-042021-10-020000883902cnr:CommercialSegmentMembercnr:MetalCoilCoatingMember2020-07-052020-10-030000883902cnr:CommercialSegmentMembercnr:MetalCoilCoatingMember2021-01-012021-10-020000883902cnr:CommercialSegmentMembercnr:MetalCoilCoatingMember2020-01-012020-10-030000883902cnr:CommercialSegmentMember2021-07-042021-10-020000883902cnr:CommercialSegmentMember2020-07-052020-10-030000883902cnr:CommercialSegmentMember2021-01-012021-10-020000883902cnr:CommercialSegmentMember2020-01-012020-10-030000883902cnr:CascadeWindowsLLCMember2021-08-202021-08-200000883902cnr:CascadeWindowsLLCMember2021-08-200000883902cnr:WindowsSegmentMembercnr:CascadeWindowsLLCMember2021-08-200000883902cnr:CascadeWindowsLLCMember2021-07-042021-10-020000883902cnr:CascadeWindowsLLCMember2021-01-012021-10-020000883902cnr:PrimeWindowsLLCMember2021-04-302021-04-30cnr:facility0000883902cnr:PrimeWindowsLLCMembercountry:US2021-04-302021-04-300000883902cnr:PrimeWindowsLLCMember2021-04-300000883902cnr:PrimeWindowsLLCMembercnr:WindowsSegmentMember2021-04-300000883902cnr:PrimeWindowsLLCMember2021-07-042021-10-020000883902cnr:PrimeWindowsLLCMember2021-01-012021-10-02xbrli:pure0000883902cnr:KlearyMasonryIncMember2020-03-020000883902cnr:KlearyMasonryIncMember2020-03-022020-03-020000883902cnr:KlearyMasonryIncMember2020-04-052020-07-040000883902cnr:SidingSegmentMembercnr:KlearyMasonryIncMember2020-03-020000883902cnr:KlearyMasonryIncMember2021-01-012021-10-020000883902us-gaap:CorporateNonSegmentMember2021-01-012021-10-020000883902us-gaap:EmployeeSeveranceMember2021-07-042021-10-020000883902us-gaap:EmployeeSeveranceMember2021-01-012021-10-020000883902us-gaap:EmployeeSeveranceMember2021-10-020000883902cnr:AssetImpairmentMember2021-07-042021-10-020000883902cnr:AssetImpairmentMember2021-01-012021-10-020000883902cnr:AssetImpairmentMember2021-10-020000883902cnr:GainOnSaleOfFacilityMember2021-07-042021-10-020000883902cnr:GainOnSaleOfFacilityMember2021-01-012021-10-020000883902cnr:GainOnSaleOfFacilityMember2021-10-020000883902us-gaap:OtherRestructuringMember2021-07-042021-10-020000883902us-gaap:OtherRestructuringMember2021-01-012021-10-020000883902us-gaap:OtherRestructuringMember2021-10-020000883902cnr:WindowsSegmentMemberus-gaap:OperatingSegmentsMember2018-12-310000883902cnr:SidingSegmentMemberus-gaap:OperatingSegmentsMember2018-12-310000883902cnr:CommercialSegmentMemberus-gaap:OperatingSegmentsMember2018-12-310000883902us-gaap:CorporateNonSegmentMember2018-12-3100008839022018-12-310000883902cnr:WindowsSegmentMemberus-gaap:OperatingSegmentsMember2019-01-012019-12-310000883902cnr:SidingSegmentMemberus-gaap:OperatingSegmentsMember2019-01-012019-12-310000883902cnr:CommercialSegmentMemberus-gaap:OperatingSegmentsMember2019-01-012019-12-310000883902us-gaap:CorporateNonSegmentMember2019-01-012019-12-3100008839022019-01-012019-12-310000883902cnr:WindowsSegmentMemberus-gaap:OperatingSegmentsMember2019-12-310000883902cnr:SidingSegmentMemberus-gaap:OperatingSegmentsMember2019-12-310000883902cnr:CommercialSegmentMemberus-gaap:OperatingSegmentsMember2019-12-310000883902us-gaap:CorporateNonSegmentMember2019-12-310000883902cnr:WindowsSegmentMemberus-gaap:OperatingSegmentsMember2020-01-012020-12-310000883902cnr:SidingSegmentMemberus-gaap:OperatingSegmentsMember2020-01-012020-12-310000883902cnr:CommercialSegmentMemberus-gaap:OperatingSegmentsMember2020-01-012020-12-310000883902us-gaap:CorporateNonSegmentMember2020-01-012020-12-3100008839022020-01-012020-12-310000883902cnr:WindowsSegmentMemberus-gaap:OperatingSegmentsMember2020-12-310000883902cnr:SidingSegmentMemberus-gaap:OperatingSegmentsMember2020-12-310000883902cnr:CommercialSegmentMemberus-gaap:OperatingSegmentsMember2020-12-310000883902us-gaap:CorporateNonSegmentMember2020-12-310000883902cnr:WindowsSegmentMemberus-gaap:OperatingSegmentsMember2021-01-012021-10-020000883902cnr:SidingSegmentMemberus-gaap:OperatingSegmentsMember2021-01-012021-10-020000883902cnr:CommercialSegmentMemberus-gaap:OperatingSegmentsMember2021-01-012021-10-020000883902cnr:WindowsSegmentMemberus-gaap:OperatingSegmentsMember2021-10-020000883902cnr:SidingSegmentMemberus-gaap:OperatingSegmentsMember2021-10-020000883902cnr:CommercialSegmentMemberus-gaap:OperatingSegmentsMember2021-10-020000883902us-gaap:CorporateNonSegmentMember2021-10-020000883902srt:MinimumMember2021-01-012021-10-020000883902srt:MaximumMember2021-01-012021-10-020000883902cnr:WindowsSegmentMember2019-12-310000883902cnr:SidingSegmentMember2019-12-310000883902cnr:CommercialSegmentMember2019-12-310000883902cnr:WindowsSegmentMember2020-01-012020-12-310000883902cnr:SidingSegmentMember2020-01-012020-12-310000883902cnr:CommercialSegmentMember2020-01-012020-12-310000883902cnr:WindowsSegmentMember2020-12-310000883902cnr:SidingSegmentMember2020-12-310000883902cnr:CommercialSegmentMember2020-12-310000883902cnr:WindowsSegmentMember2021-10-020000883902cnr:SidingSegmentMember2021-10-020000883902cnr:CommercialSegmentMember2021-10-020000883902us-gaap:InventoriesMember2021-01-012021-10-020000883902us-gaap:TrademarksAndTradeNamesMembersrt:MinimumMember2021-01-012021-10-020000883902us-gaap:TrademarksAndTradeNamesMembersrt:MaximumMember2021-01-012021-10-020000883902us-gaap:TrademarksAndTradeNamesMembersrt:WeightedAverageMember2021-01-012021-10-020000883902us-gaap:TrademarksAndTradeNamesMember2021-10-020000883902cnr:CustomerListsAndRelationshipsMembersrt:MinimumMember2021-01-012021-10-020000883902cnr:CustomerListsAndRelationshipsMembersrt:MaximumMember2021-01-012021-10-020000883902cnr:CustomerListsAndRelationshipsMembersrt:WeightedAverageMember2021-01-012021-10-020000883902cnr:CustomerListsAndRelationshipsMember2021-10-020000883902srt:WeightedAverageMember2021-01-012021-10-020000883902us-gaap:TrademarksAndTradeNamesMembersrt:MinimumMember2020-01-012020-12-310000883902us-gaap:TrademarksAndTradeNamesMembersrt:MaximumMember2020-01-012020-12-310000883902us-gaap:TrademarksAndTradeNamesMembersrt:WeightedAverageMember2020-01-012020-12-310000883902us-gaap:TrademarksAndTradeNamesMember2020-12-310000883902cnr:CustomerListsAndRelationshipsMembersrt:MinimumMember2020-01-012020-12-310000883902cnr:CustomerListsAndRelationshipsMembersrt:MaximumMember2020-01-012020-12-310000883902cnr:CustomerListsAndRelationshipsMembersrt:WeightedAverageMember2020-01-012020-12-310000883902cnr:CustomerListsAndRelationshipsMember2020-12-310000883902srt:WeightedAverageMember2020-01-012020-12-310000883902cnr:InsulatedMetalPanelsMember2021-07-042021-10-020000883902cnr:DBCIMember2021-01-012021-10-020000883902cnr:InsulatedMetalPanelsMember2021-01-012021-10-020000883902cnr:DBCIMember2021-07-042021-10-0200008839022021-08-090000883902cnr:IncentivePlanMemberus-gaap:EmployeeStockOptionMembersrt:MinimumMember2021-01-012021-10-020000883902us-gaap:RestrictedStockUnitsRSUMembercnr:IncentivePlanMembersrt:MinimumMember2021-01-012021-10-020000883902cnr:IncentivePlanMemberus-gaap:EmployeeStockOptionMembersrt:MaximumMember2021-01-012021-10-020000883902us-gaap:RestrictedStockUnitsRSUMembercnr:IncentivePlanMembersrt:MaximumMember2021-01-012021-10-020000883902us-gaap:PerformanceSharesMembercnr:IncentivePlanMembersrt:MinimumMember2021-01-012021-10-020000883902us-gaap:PerformanceSharesMember2021-10-020000883902us-gaap:PerformanceSharesMembercnr:IncentivePlanMembersrt:MinimumMember2020-01-012020-10-030000883902cnr:KeyEmployeeAwardsMember2021-01-012021-10-020000883902us-gaap:RestrictedStockUnitsRSUMembercnr:KeyEmployeeAwardsMember2021-01-012021-10-020000883902us-gaap:RestrictedStockUnitsRSUMembercnr:KeyEmployeeAwardsMember2020-01-012020-10-030000883902cnr:KeyEmployeeAwardsMembercnr:PerformanceStockUnitsMember2021-01-012021-10-020000883902cnr:KeyEmployeeAwardsMembercnr:PerformanceStockUnitsMember2020-01-012020-10-030000883902us-gaap:EmployeeStockOptionMember2021-07-042021-10-020000883902us-gaap:EmployeeStockOptionMember2020-07-052020-10-030000883902us-gaap:EmployeeStockOptionMember2021-01-012021-10-020000883902us-gaap:EmployeeStockOptionMember2020-01-012020-10-030000883902us-gaap:PerformanceSharesMember2021-07-042021-10-020000883902us-gaap:PerformanceSharesMember2020-07-052020-10-030000883902us-gaap:PerformanceSharesMember2021-01-012021-10-020000883902us-gaap:PerformanceSharesMember2020-01-012020-10-030000883902us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2021-07-042021-10-020000883902us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2020-07-052020-10-030000883902us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2021-01-012021-10-020000883902us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2020-01-012020-10-030000883902us-gaap:PensionPlansDefinedBenefitMember2021-10-020000883902us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2021-10-020000883902cnr:TermLoanFacilityDueApril2028Member2021-10-020000883902cnr:TermLoanFacilityDueApril2028Member2020-12-310000883902cnr:EightPercentSeniorNotesDue2026Member2021-10-020000883902cnr:EightPercentSeniorNotesDue2026Member2020-12-310000883902cnr:A6125SeniorNotesDueJanuary2029Member2020-12-310000883902cnr:A6125SeniorNotesDueJanuary2029Member2021-10-020000883902us-gaap:OtherAssetsMembercnr:AblFacilityMembercnr:ABLCreditFacilityDue2023Member2021-10-020000883902us-gaap:OtherAssetsMembercnr:AblFacilityMembercnr:ABLCreditFacilityDue2023Member2020-12-310000883902cnr:TermLoanFacilityMembercnr:PlyGemMember2018-04-120000883902cnr:TermLoanFacilityMember2018-04-122018-04-120000883902cnr:PlyGemMembercnr:CashFlowRevolverMember2018-04-120000883902cnr:TermLoanFacilityMembercnr:PlyGemMember2018-11-162018-11-160000883902us-gaap:RevolvingCreditFacilityMembercnr:AblFacilityMember2018-11-162018-11-160000883902cnr:CashFlowRevolverMember2021-04-1500008839022021-04-150000883902cnr:ExtendedCashFlowRevolverMember2021-04-150000883902cnr:TermLoanFacilityMember2021-04-150000883902cnr:TrancheBTermLoanMember2021-04-150000883902cnr:TrancheBTermLoanMember2021-04-152021-04-150000883902cnr:EightPercentSeniorNotesDue2026Member2021-04-150000883902cnr:TermLoanFacilityMember2021-04-152021-04-150000883902cnr:TermLoanFacilityMemberus-gaap:LondonInterbankOfferedRateLIBORMember2021-04-152021-04-150000883902cnr:TermLoanFacilityMemberus-gaap:BaseRateMember2021-04-152021-04-150000883902cnr:TermLoanFacilityMember2021-01-012021-10-020000883902cnr:TermLoanFacilityMember2021-10-020000883902cnr:CashFlowRevolverMemberus-gaap:LondonInterbankOfferedRateLIBORMember2021-04-152021-04-150000883902srt:MinimumMembercnr:CashFlowRevolverMemberus-gaap:LondonInterbankOfferedRateLIBORMember2021-04-152021-04-150000883902srt:MaximumMembercnr:CashFlowRevolverMemberus-gaap:LondonInterbankOfferedRateLIBORMember2021-04-152021-04-150000883902us-gaap:BaseRateMembersrt:MinimumMembercnr:CashFlowRevolverMember2021-04-152021-04-150000883902us-gaap:BaseRateMembersrt:MaximumMembercnr:CashFlowRevolverMember2021-04-152021-04-150000883902cnr:CommitmentFeePercentageOneMembersrt:MinimumMembercnr:CashFlowRevolverMember2021-04-152021-04-150000883902cnr:CommitmentFeePercentageOneMembersrt:MaximumMembercnr:CashFlowRevolverMember2021-04-152021-04-150000883902cnr:TermLoanFacilityMembersrt:MinimumMembercnr:LeverageRatioTargetAchievedMember2021-04-152021-04-150000883902cnr:TermLoanFacilityMembercnr:LeverageRatioTargetAchievedMembersrt:MaximumMember2021-04-152021-04-150000883902cnr:CashFlowRevolverMember2021-04-152021-04-150000883902us-gaap:RevolvingCreditFacilityMembercnr:AblFacilityMember2018-04-120000883902us-gaap:RevolvingCreditFacilityMembercnr:AblFacilityMembercnr:ABLU.S.FacilityMember2018-04-120000883902us-gaap:RevolvingCreditFacilityMembercnr:AblFacilityMembercnr:ABLCanadianFacilityMember2018-04-120000883902us-gaap:RevolvingCreditFacilityMembercnr:AblFacilityMember2018-10-152018-10-150000883902us-gaap:RevolvingCreditFacilityMembercnr:AblFacilityMember2018-10-150000883902us-gaap:RevolvingCreditFacilityMembercnr:AblFacilityMembercnr:ABLU.S.FacilityMember2018-10-140000883902us-gaap:RevolvingCreditFacilityMembercnr:AblFacilityMembercnr:ABLU.S.FacilityMember2018-10-150000883902us-gaap:RevolvingCreditFacilityMembercnr:AblFacilityMembercnr:ABLCanadianFacilityMember2018-10-140000883902us-gaap:RevolvingCreditFacilityMembercnr:AblFacilityMembercnr:ABLCanadianFacilityMember2018-10-150000883902us-gaap:RevolvingCreditFacilityMembercnr:AblFacilityMember2018-11-160000883902us-gaap:RevolvingCreditFacilityMembercnr:AblFacilityMembercnr:ABLU.S.FacilityMember2018-11-150000883902us-gaap:RevolvingCreditFacilityMembercnr:AblFacilityMembercnr:ABLU.S.FacilityMember2018-11-160000883902us-gaap:RevolvingCreditFacilityMembercnr:AblFacilityMembercnr:ABLCanadianFacilityMember2018-11-150000883902us-gaap:RevolvingCreditFacilityMembercnr:AblFacilityMembercnr:ABLCanadianFacilityMember2018-11-160000883902us-gaap:RevolvingCreditFacilityMembercnr:ExtendedABLCommitmentsMemberus-gaap:LineOfCreditMember2021-04-150000883902cnr:AblFacilityMember2021-10-020000883902cnr:AblFacilityMemberus-gaap:LondonInterbankOfferedRateLIBORMember2021-04-152021-04-150000883902cnr:AblFacilityMembersrt:MinimumMemberus-gaap:LondonInterbankOfferedRateLIBORMember2018-04-122018-04-120000883902cnr:AblFacilityMembersrt:MaximumMemberus-gaap:LondonInterbankOfferedRateLIBORMember2021-04-152021-04-150000883902cnr:AblFacilityMemberus-gaap:BaseRateMembersrt:MinimumMember2018-04-122018-04-120000883902cnr:AblFacilityMemberus-gaap:BaseRateMembersrt:MaximumMember2021-04-152021-04-150000883902cnr:AblFacilityMembercnr:CommitmentFeePercentageOneMembersrt:MinimumMember2021-04-152021-04-150000883902us-gaap:RevolvingCreditFacilityMembercnr:AblFacilityMember2021-01-012021-10-020000883902cnr:A6125SeniorNotesDueJanuary2029Member2020-09-240000883902cnr:A6125SeniorNotesDueJanuary2029Member2020-09-242020-09-240000883902cnr:A6125SeniorNotesDueJanuary2029Memberus-gaap:DebtInstrumentRedemptionPeriodFiveMember2020-09-242020-09-240000883902cnr:A6125SeniorNotesDueJanuary2029Membercnr:DebtInstrumentRedemptionPeriodSixMember2020-09-242020-09-240000883902cnr:A6125SeniorNotesDueJanuary2029Membercnr:DebtInstrumentRedemptionPeriodSevenMember2020-09-242020-09-240000883902cnr:A6125SeniorNotesDueJanuary2029Membercnr:DebtInstrumentRedemptionPeriodEightMember2020-09-242020-09-240000883902cnr:A6125SeniorNotesDueJanuary2029Membercnr:DebtInstrumentRedemptionPeriodNineMember2020-09-242020-09-240000883902cnr:EightPercentSeniorNotesDue2026Member2021-01-012021-10-020000883902us-gaap:InterestRateSwapMember2019-05-012019-05-310000883902us-gaap:InterestRateSwapMember2019-05-310000883902cnr:InterestRateSwapThreeMember2019-05-31cnr:derivativeInstrument00008839022021-04-152021-04-150000883902us-gaap:NondesignatedMembercnr:InterestRateSwapTwoMember2021-04-150000883902cnr:InterestRateSwapOneMemberus-gaap:NondesignatedMember2021-04-150000883902cnr:InterestRateSwapSixMember2021-04-150000883902us-gaap:InterestRateSwapMemberus-gaap:NondesignatedMember2021-04-150000883902cnr:PayFixedInterestRateSwapTwoMember2021-04-150000883902cnr:PayFixedInterestRateSwapOneMember2021-04-150000883902us-gaap:NondesignatedMember2021-10-020000883902srt:MinimumMember2021-10-020000883902srt:MaximumMember2021-10-020000883902cnr:InterestRateSwapOneMember2021-10-020000883902cnr:InterestRateSwapOneMember2020-12-310000883902cnr:InterestRateSwapTwoMember2021-10-020000883902cnr:InterestRateSwapTwoMember2020-12-310000883902cnr:InterestRateSwapThreeMember2021-10-020000883902cnr:InterestRateSwapThreeMember2020-12-310000883902cnr:InterestRateSwapFourMember2021-10-020000883902cnr:InterestRateSwapFourMember2020-12-310000883902cnr:InterestRateSwapFiveMember2021-10-020000883902cnr:InterestRateSwapFiveMember2020-12-310000883902cnr:InterestRateSwapSixMember2021-10-020000883902cnr:InterestRateSwapSixMember2020-12-310000883902cnr:InterestRateSwapSevenMember2021-10-020000883902cnr:InterestRateSwapSevenMember2020-12-310000883902us-gaap:InterestRateSwapMember2021-10-020000883902us-gaap:InterestRateSwapMember2020-12-310000883902us-gaap:ForwardContractsMember2020-12-310000883902us-gaap:ForwardContractsMember2021-07-030000883902us-gaap:ForwardContractsMember2021-07-042021-10-020000883902us-gaap:ForwardContractsMember2021-01-012021-10-020000883902us-gaap:OtherAssetsMemberus-gaap:InterestRateSwapMemberus-gaap:NondesignatedMember2021-10-020000883902us-gaap:OtherAssetsMemberus-gaap:InterestRateSwapMemberus-gaap:NondesignatedMember2020-12-310000883902us-gaap:InterestRateSwapMemberus-gaap:NondesignatedMemberus-gaap:OtherNoncurrentLiabilitiesMember2021-10-020000883902us-gaap:InterestRateSwapMemberus-gaap:NondesignatedMemberus-gaap:OtherNoncurrentLiabilitiesMember2020-12-310000883902us-gaap:NondesignatedMember2020-12-310000883902us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateSwapMemberus-gaap:OtherCurrentLiabilitiesMember2021-10-020000883902us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateSwapMemberus-gaap:OtherCurrentLiabilitiesMember2020-12-310000883902us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateSwapMemberus-gaap:OtherNoncurrentLiabilitiesMember2021-10-020000883902us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateSwapMemberus-gaap:OtherNoncurrentLiabilitiesMember2020-12-310000883902us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMemberus-gaap:OtherCurrentLiabilitiesMember2021-10-020000883902us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMemberus-gaap:OtherCurrentLiabilitiesMember2020-12-310000883902us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMemberus-gaap:OtherNoncurrentLiabilitiesMember2021-10-020000883902us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMemberus-gaap:OtherNoncurrentLiabilitiesMember2020-12-310000883902us-gaap:DesignatedAsHedgingInstrumentMember2021-10-020000883902us-gaap:DesignatedAsHedgingInstrumentMember2020-12-310000883902us-gaap:InterestRateSwapMemberus-gaap:NondesignatedMemberus-gaap:InterestExpenseMember2021-07-042021-10-020000883902us-gaap:InterestRateSwapMemberus-gaap:NondesignatedMemberus-gaap:InterestExpenseMember2020-07-052020-10-030000883902us-gaap:InterestRateSwapMemberus-gaap:NondesignatedMemberus-gaap:InterestExpenseMember2021-01-012021-10-020000883902us-gaap:InterestRateSwapMemberus-gaap:NondesignatedMemberus-gaap:InterestExpenseMember2020-01-012020-10-030000883902us-gaap:ForeignExchangeContractMemberus-gaap:NondesignatedMemberus-gaap:CostOfSalesMember2021-07-042021-10-020000883902us-gaap:ForeignExchangeContractMemberus-gaap:NondesignatedMemberus-gaap:CostOfSalesMember2020-07-052020-10-030000883902us-gaap:ForeignExchangeContractMemberus-gaap:NondesignatedMemberus-gaap:CostOfSalesMember2021-01-012021-10-020000883902us-gaap:ForeignExchangeContractMemberus-gaap:NondesignatedMemberus-gaap:CostOfSalesMember2020-01-012020-10-030000883902us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateSwapMemberus-gaap:InterestExpenseMember2021-07-042021-10-020000883902us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateSwapMemberus-gaap:InterestExpenseMember2020-07-052020-10-030000883902us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateSwapMemberus-gaap:InterestExpenseMember2021-01-012021-10-020000883902us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateSwapMemberus-gaap:InterestExpenseMember2020-01-012020-10-030000883902us-gaap:DesignatedAsHedgingInstrumentMember2021-07-042021-10-020000883902us-gaap:DesignatedAsHedgingInstrumentMember2020-07-052020-10-030000883902us-gaap:DesignatedAsHedgingInstrumentMember2021-01-012021-10-020000883902us-gaap:DesignatedAsHedgingInstrumentMember2020-01-012020-10-030000883902cnr:CdAndRFundMember2021-10-020000883902cnr:CdAndRFundMember2020-12-3100008839022017-10-1000008839022018-03-070000883902cnr:AblFacilityMember2021-10-020000883902cnr:CashFlowRevolverMember2021-10-020000883902cnr:TermLoanCreditAgreementDue2025Member2021-10-020000883902cnr:TermLoanCreditAgreementDue2025Member2020-12-310000883902us-gaap:FairValueInputsLevel1Memberus-gaap:MoneyMarketFundsMember2021-10-020000883902us-gaap:FairValueInputsLevel2Memberus-gaap:MoneyMarketFundsMember2021-10-020000883902us-gaap:FairValueInputsLevel3Memberus-gaap:MoneyMarketFundsMember2021-10-020000883902us-gaap:MoneyMarketFundsMember2021-10-020000883902cnr:MutualFundsGrowthMemberus-gaap:FairValueInputsLevel1Member2021-10-020000883902cnr:MutualFundsGrowthMemberus-gaap:FairValueInputsLevel2Member2021-10-020000883902cnr:MutualFundsGrowthMemberus-gaap:FairValueInputsLevel3Member2021-10-020000883902cnr:MutualFundsGrowthMember2021-10-020000883902us-gaap:FairValueInputsLevel1Membercnr:MutualFundsBlendMember2021-10-020000883902us-gaap:FairValueInputsLevel2Membercnr:MutualFundsBlendMember2021-10-020000883902us-gaap:FairValueInputsLevel3Membercnr:MutualFundsBlendMember2021-10-020000883902cnr:MutualFundsBlendMember2021-10-020000883902cnr:MutualFundsForeignBlendMemberus-gaap:FairValueInputsLevel1Member2021-10-020000883902cnr:MutualFundsForeignBlendMemberus-gaap:FairValueInputsLevel2Member2021-10-020000883902cnr:MutualFundsForeignBlendMemberus-gaap:FairValueInputsLevel3Member2021-10-020000883902cnr:MutualFundsForeignBlendMember2021-10-020000883902cnr:MutualFundsFixedIncomeMemberus-gaap:FairValueInputsLevel1Member2021-10-020000883902cnr:MutualFundsFixedIncomeMemberus-gaap:FairValueInputsLevel2Member2021-10-020000883902cnr:MutualFundsFixedIncomeMemberus-gaap:FairValueInputsLevel3Member2021-10-020000883902cnr:MutualFundsFixedIncomeMember2021-10-020000883902us-gaap:FairValueInputsLevel1Member2021-10-020000883902us-gaap:FairValueInputsLevel2Member2021-10-020000883902us-gaap:FairValueInputsLevel3Member2021-10-020000883902us-gaap:InterestRateSwapMemberus-gaap:FairValueInputsLevel1Member2021-10-020000883902us-gaap:InterestRateSwapMemberus-gaap:FairValueInputsLevel2Member2021-10-020000883902us-gaap:InterestRateSwapMemberus-gaap:FairValueInputsLevel3Member2021-10-020000883902cnr:DeferredCompensationPlanMemberus-gaap:FairValueInputsLevel1Member2021-10-020000883902cnr:DeferredCompensationPlanMemberus-gaap:FairValueInputsLevel2Member2021-10-020000883902cnr:DeferredCompensationPlanMemberus-gaap:FairValueInputsLevel3Member2021-10-020000883902cnr:DeferredCompensationPlanMember2021-10-020000883902us-gaap:FairValueInputsLevel1Memberus-gaap:ForeignExchangeContractMember2021-10-020000883902us-gaap:FairValueInputsLevel2Memberus-gaap:ForeignExchangeContractMember2021-10-020000883902us-gaap:FairValueInputsLevel3Memberus-gaap:ForeignExchangeContractMember2021-10-020000883902us-gaap:ForeignExchangeContractMember2021-10-020000883902us-gaap:FairValueInputsLevel1Memberus-gaap:MoneyMarketFundsMember2020-12-310000883902us-gaap:FairValueInputsLevel2Memberus-gaap:MoneyMarketFundsMember2020-12-310000883902us-gaap:FairValueInputsLevel3Memberus-gaap:MoneyMarketFundsMember2020-12-310000883902us-gaap:MoneyMarketFundsMember2020-12-310000883902cnr:MutualFundsGrowthMemberus-gaap:FairValueInputsLevel1Member2020-12-310000883902cnr:MutualFundsGrowthMemberus-gaap:FairValueInputsLevel2Member2020-12-310000883902cnr:MutualFundsGrowthMemberus-gaap:FairValueInputsLevel3Member2020-12-310000883902cnr:MutualFundsGrowthMember2020-12-310000883902us-gaap:FairValueInputsLevel1Membercnr:MutualFundsBlendMember2020-12-310000883902us-gaap:FairValueInputsLevel2Membercnr:MutualFundsBlendMember2020-12-310000883902us-gaap:FairValueInputsLevel3Membercnr:MutualFundsBlendMember2020-12-310000883902cnr:MutualFundsBlendMember2020-12-310000883902cnr:MutualFundsForeignBlendMemberus-gaap:FairValueInputsLevel1Member2020-12-310000883902cnr:MutualFundsForeignBlendMemberus-gaap:FairValueInputsLevel2Member2020-12-310000883902cnr:MutualFundsForeignBlendMemberus-gaap:FairValueInputsLevel3Member2020-12-310000883902cnr:MutualFundsForeignBlendMember2020-12-310000883902cnr:MutualFundsFixedIncomeMemberus-gaap:FairValueInputsLevel1Member2020-12-310000883902cnr:MutualFundsFixedIncomeMemberus-gaap:FairValueInputsLevel2Member2020-12-310000883902cnr:MutualFundsFixedIncomeMemberus-gaap:FairValueInputsLevel3Member2020-12-310000883902cnr:MutualFundsFixedIncomeMember2020-12-310000883902us-gaap:FairValueInputsLevel1Member2020-12-310000883902us-gaap:FairValueInputsLevel2Member2020-12-310000883902us-gaap:FairValueInputsLevel3Member2020-12-310000883902cnr:DeferredCompensationPlanMemberus-gaap:FairValueInputsLevel1Member2020-12-310000883902cnr:DeferredCompensationPlanMemberus-gaap:FairValueInputsLevel2Member2020-12-310000883902cnr:DeferredCompensationPlanMemberus-gaap:FairValueInputsLevel3Member2020-12-310000883902cnr:DeferredCompensationPlanMember2020-12-310000883902us-gaap:InterestRateSwapMemberus-gaap:FairValueInputsLevel1Member2020-12-310000883902us-gaap:InterestRateSwapMemberus-gaap:FairValueInputsLevel2Member2020-12-310000883902us-gaap:InterestRateSwapMemberus-gaap:FairValueInputsLevel3Member2020-12-310000883902cnr:PayFixedInterestRateSwapMember2021-10-020000883902us-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:FairValueInputsLevel1Member2021-10-020000883902us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsNonrecurringMember2021-10-020000883902us-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:FairValueInputsLevel3Member2021-10-020000883902us-gaap:FairValueMeasurementsNonrecurringMember2021-10-020000883902srt:ScenarioForecastMember2021-12-31cnr:segment0000883902cnr:WindowsSegmentMemberus-gaap:OperatingSegmentsMember2021-07-042021-10-020000883902cnr:WindowsSegmentMemberus-gaap:OperatingSegmentsMember2020-07-052020-10-030000883902cnr:WindowsSegmentMemberus-gaap:OperatingSegmentsMember2020-01-012020-10-030000883902cnr:SidingSegmentMemberus-gaap:OperatingSegmentsMember2021-07-042021-10-020000883902cnr:SidingSegmentMemberus-gaap:OperatingSegmentsMember2020-07-052020-10-030000883902cnr:SidingSegmentMemberus-gaap:OperatingSegmentsMember2020-01-012020-10-030000883902cnr:CommercialSegmentMemberus-gaap:OperatingSegmentsMember2021-07-042021-10-020000883902cnr:CommercialSegmentMemberus-gaap:OperatingSegmentsMember2020-07-052020-10-030000883902cnr:CommercialSegmentMemberus-gaap:OperatingSegmentsMember2020-01-012020-10-030000883902us-gaap:CorporateNonSegmentMember2021-07-042021-10-020000883902us-gaap:CorporateNonSegmentMember2020-07-052020-10-030000883902us-gaap:CorporateNonSegmentMember2020-01-012020-10-030000883902cnr:RCRAFacilityInvestigationMember2021-05-192021-05-190000883902cnr:RCRAFacilityInvestigationMembercnr:CurrentLiabilitiesMember2021-10-020000883902us-gaap:OtherCurrentLiabilitiesMembercnr:RCRAFacilityInvestigationMember2021-10-02cnr:phase00008839022021-05-310000883902cnr:PCETCENortheastContaminationSiteMember2021-10-020000883902cnr:AuroraPlasticsLLCvs.AtriumMember2021-10-020000883902cnr:AuroraPlasticsLLCvs.AtriumMemberus-gaap:OtherCurrentLiabilitiesMember2021-10-02cnr:defendant0000883902cnr:VoigtVsCDRCaseMember2019-04-112019-04-110000883902cnr:VoigtVsCDRCaseMember2020-02-102020-02-100000883902cnr:VoigtVsCDRCaseMember2021-08-252021-08-250000883902cnr:CountervailingDutyTariffProceedingsMember2021-10-020000883902cnr:AntidumpingTariffProceedingsMember2021-10-020000883902cnr:RecoveryFromCountervailingDutyTariffProceedingsMember2020-12-31

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
 
(Mark One) 
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended: October 2, 2021
 
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: 1-14315
 
 cnr-20211002_g1.jpg
Cornerstone Building Brands, Inc.
(Exact name of registrant as specified in its charter)

 
Delaware76-0127701
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
5020 Weston ParkwaySuite 400CaryNC27513
(Address of principal executive offices)(Zip Code)
 
(866) 419-0042
(Registrant’s telephone number, including area code)

 
 
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 ý 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). ý Yes ¨ 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 filerAccelerated filerý
Non-accelerated filer
¨ (Do not check if a smaller reporting company)
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. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ý No
 
Securities registered pursuant to Section 12(b) of the Exchange Act:
Title of Each ClassTrading SymbolName of Each Exchange on Which Registered
Common Stock $0.01 par value per shareCNRNew York Stock Exchange

APPLICABLE ONLY TO CORPORATE ISSUERS
 
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
 
Common Stock, $0.01 par value - 126,218,902 shares as of November 2, 2021.




TABLE OF CONTENTS 
  PAGE
  
Item 1.
 
 
 
 
 
Item 2.
Item 3.
Item 4.
   
  
Item 1.
Item 1A.
Item 2.
Item 6.
 

i


PART I — FINANCIAL INFORMATION 
Item 1. Unaudited Consolidated Financial Statements. 
CORNERSTONE BUILDING BRANDS, INC. 
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
 Three Months EndedNine Months Ended
 October 2,
2021
October 3,
2020
October 2,
2021
October 3,
2020
Net sales$1,444,405 $1,227,253 $4,111,558 $3,426,000 
Cost of sales1,134,909 929,751 3,230,605 2,642,880 
Gross profit309,496 297,502 880,953 783,120 
Selling, general and administrative expenses161,134 137,250 477,820 436,575 
Intangible asset amortization45,667 45,446 138,678 135,547 
Restructuring and impairment charges, net971 2,918 7,461 32,164 
Strategic development and acquisition related costs22,250 7,909 25,502 13,550 
Gain on divestitures(831,252) (831,252) 
Goodwill impairment   503,171 
Income (loss) from operations910,726 103,979 1,062,744 (337,887)
Interest income71 328 211 1,007 
Interest expense(43,731)(51,519)(147,688)(158,738)
Foreign exchange gain (loss)(1,270)812 (1,067)(1,300)
Loss on extinguishment of debt  (42,234) 
Other income (expense), net337 (23)1,167 (25)
Income (loss) before income taxes866,133 53,577 873,133 (496,943)
Provision (benefit) for income taxes245,598 23,061 245,326 (12,285)
Net income (loss)620,535 30,516 627,807 (484,658)
Net income allocated to participating securities(8,380)(488)(7,837) 
Net income (loss) applicable to common shares$612,155 $30,028 $619,970 $(484,658)
Income (loss) per common share:  
Basic$4.85 $0.24 $4.93 $(3.86)
Diluted$4.82 $0.24 $4.90 $(3.86)
Weighted average number of common shares outstanding:  
Basic126,159 125,100 125,840 125,655 
Diluted127,079 125,289 126,602 125,655 
See accompanying notes to consolidated financial statements.
 


1


CORNERSTONE BUILDING BRANDS, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(In thousands)
(Unaudited)
 Three Months EndedNine Months Ended
 October 2,
2021
October 3,
2020
October 2,
2021
October 3,
2020
Comprehensive income (loss):    
Net income (loss)$620,535 $30,516 $627,807 $(484,658)
Other comprehensive income (loss), net of tax:    
Foreign exchange translation gains (losses)(6,787)7,354 3,875 6,357 
Unrealized gain (loss) on derivative instruments, net of income tax of $2,453, $(426), $654 and $12,788, respectively
4,658 194 8,780 (41,711)
Amount reclassified from Accumulated other comprehensive income (loss) into earnings7,288  13,957  
Other comprehensive income (loss)5,159 7,548 26,612 (35,354)
Comprehensive income (loss)$625,694 $38,064 $654,419 $(520,012)
See accompanying notes to consolidated financial statements.
2


CORNERSTONE BUILDING BRANDS, INC. 
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
(Unaudited)
 October 2,
2021
December 31,
2020
ASSETS  
Current assets:  
Cash and cash equivalents$677,187 $674,255 
Restricted cash2,211 6,223 
Accounts receivable, less allowances of $11,176 and $13,313, respectively
645,298 554,649 
Inventories, net614,573 431,937 
Income taxes receivable11,611 39,379 
Investments in debt and equity securities, at market2,567 2,333 
Prepaid expenses and other119,234 77,751 
Assets held for sale3,909 4,644 
     Total current assets2,076,590 1,791,171 
Property, plant and equipment, less accumulated depreciation of $613,459 and $644,308, respectively
583,371 631,821 
Lease right-of-use assets278,316 264,107 
Goodwill1,326,411 1,194,729 
Intangible assets, net1,438,039 1,584,604 
Deferred income taxes2,109 1,867 
Other assets, net26,259 10,191 
     Total assets$5,731,095 $5,478,490 
LIABILITIES AND STOCKHOLDERS’ EQUITY  
Current liabilities:  
Current portion of long-term debt$26,000 $25,600 
Accounts payable307,153 211,441 
Accrued compensation and benefits96,794 81,548 
Accrued interest12,722 25,485 
Accrued income taxes8,216 5,060 
Current portion of lease liabilities72,983 70,125 
Other accrued expenses294,074 247,893 
     Total current liabilities817,942 667,152 
Long-term debt3,015,795 3,563,429 
Deferred income taxes248,544 269,792 
Long-term lease liabilities207,570 198,875 
Other long-term liabilities329,189 337,437 
     Total long-term liabilities3,801,098 4,369,533 
Stockholders’ equity:  
Common stock, $0.01 par value; 200,000,000 authorized; 126,228,665 and 126,207,594 shares issued and outstanding at October 2, 2021, respectively; and 125,425,931 and 125,400,599 shares issued and outstanding at December 31, 2020, respectively
1,263 1,255 
Additional paid-in capital1,272,999 1,257,262 
Accumulated deficit(136,878)(764,685)
Accumulated other comprehensive loss, net(24,905)(51,517)
Treasury stock, at cost (21,071 and 25,332 shares at October 2, 2021 and December 31, 2020, respectively)
(424)(510)
     Total stockholders’ equity1,112,055 441,805 
     Total liabilities and stockholders’ equity$5,731,095 $5,478,490 
See accompanying notes to consolidated financial statements.
3


CORNERSTONE BUILDING BRANDS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
 Nine Months Ended
 October 2, 2021October 3, 2020
Cash flows from operating activities:  
Net income (loss)$627,807 $(484,658)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:  
Depreciation and amortization216,956 212,413 
Non-cash interest expense19,857 6,948 
Share-based compensation expense16,946 12,568 
Loss on extinguishment of debt42,234  
Goodwill impairment 503,171 
Asset impairment4,091 3,490 
Gain on divestitures(831,252) 
Loss on sale of assets, net 710 
Provision for credit losses2,289 3,762 
Deferred income taxes(23,441)(27,052)
Changes in operating assets and liabilities, net of effect of acquisitions and divestitures:  
Accounts receivable(137,424)(84,309)
Inventories(241,068)30,980 
Income taxes27,768 16,886 
Prepaid expenses and other(41,355)6,246 
Accounts payable100,402 22,669 
Accrued expenses31,554 12,920 
Other, net996 132 
Net cash provided by (used in) operating activities(183,640)236,876 
Cash flows from investing activities:  
Acquisitions, net of cash acquired(331,010)(41,841)
Capital expenditures(75,183)(62,535)
Proceeds from divestitures, net of cash divested1,187,307  
Proceeds from sale of property, plant and equipment4,615 1,538 
Net cash provided by (used in) investing activities785,729 (102,838)
Cash flows from financing activities:  
Proceeds from ABL facility190,000 345,000 
Payments on ABL facility(190,000)(415,000)
Proceeds from cash flow revolver 115,000 
Payments on cash flow revolver (115,000)
Proceeds from term loan108,438  
Payments on term loan(19,405)(19,215)
Proceeds from senior notes 500,000 
Payments on senior notes(670,800) 
Payments of financing costs(13,187)(6,905)
Purchases of treasury stock (6,428)
Payments on derivative financing obligations(6,131) 
Other(1,300)(478)
Net cash provided by (used in) financing activities(602,385)396,974 
Effect of exchange rate changes on cash and cash equivalents(784)507 
Net increase (decrease) in cash, cash equivalents and restricted cash(1,080)531,519 
Cash, cash equivalents and restricted cash at beginning of period680,478 102,307 
Cash, cash equivalents and restricted cash at end of period$679,398 $633,826 
Supplemental disclosure of cash flow information:
Interest paid, net of amounts capitalized$149,025 $138,325 
Taxes paid, net$232,755 $(1,881)
 See accompanying notes to consolidated financial statements.
4



CORNERSTONE BUILDING BRANDS, INC.
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(In thousands, except share data)
(Unaudited)
Fiscal QuartersCommon StockAdditional Paid-In CapitalRetained Earnings (Deficit)Accumulated Other Comprehensive Income (Loss)Treasury StockStockholders’ Equity
 SharesAmountSharesAmount
Balance, July 3, 2021126,072,088 $1,261 $1,265,887 $(757,413)$(30,064)(21,071)$(424)$479,247 
Treasury stock purchases— — — — — (88,330)(1,320)(1,320)
Retirement of treasury shares(88,330)(1)(1,319)— — 88,330 1,320  
Issuance of restricted stock238,329 2 (2)— — — —  
Stock options exercised6,578 1 80 — — — — 81 
Other comprehensive income— — — — 5,159 — — 5,159 
Share-based compensation— — 8,353 — — — — 8,353 
Net income— — — 620,535 — — — 620,535 
Balance, October 2, 2021126,228,665 $1,263 $1,272,999 $(136,878)$(24,905)(21,071)$(424)$1,112,055 
Balance, July 4, 2020125,122,988 $1,252 $1,249,852 $(797,081)$(75,300)(25,650)$(511)$378,212 
Treasury stock purchases— — — — — (1,635)(11)(11)
Issuance of restricted stock5,816   — — — —  
Other comprehensive income— — — — 7,548 — — 7,548 
Share-based compensation— — 4,025 — — — — 4,025 
Net income— — — 30,516 — — — 30,516 
Balance, October 3, 2020125,128,804 $1,252 $1,253,877 $(766,565)$(67,752)(27,285)$(522)$420,290 
See accompanying notes to consolidated financial statements.
5





CORNERSTONE BUILDING BRANDS, INC.
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (Continued)
(In thousands, except share data)
(Unaudited)
Fiscal Year to Date PeriodsCommon StockAdditional Paid-In CapitalRetained Earnings (Deficit)Accumulated Other Comprehensive Income (Loss)Treasury StockStockholders’ Equity
 SharesAmountSharesAmount
December 31, 2020125,425,931 $1,255 $1,257,262 $(764,685)$(51,517)(25,332)$(510)$441,805 
Treasury stock purchases— — — — — (200,198)(2,861)(2,861)
Retirement of treasury shares(200,198)(2)(2,859)— — 200,198 2,861  
Issuance of restricted stock835,259 8 (8)— — — —  
Issuance of common stock for the Ply Gem merger15,220 — 185 — — — — 185 
Stock options exercised152,453 2 1,559 — — — — 1,561 
Other comprehensive income— — — — 26,612 — — 26,612 
Deferred compensation obligation—  (86)— — 4,261 86  
Share-based compensation— — 16,946 — — — — 16,946 
Net income— — — 627,807 — — — 627,807 
Balance, October 2, 2021126,228,665 $1,263 $1,272,999 $(136,878)$(24,905)(21,071)$(424)$1,112,055 
Balance, December 31, 2019126,110,000 $1,261 $1,248,787 $(281,229)$(32,398)(55,513)$(1,103)$935,318 
Treasury stock purchases— — — — — (1,168,514)(6,906)(6,906)
Retirement of treasury shares(1,166,973)(12)(6,883)— — 1,166,973 6,895  
Issuance of restricted stock185,777 2 (2)— — — —  
Other comprehensive loss— — — — (35,354)— — (35,354)
Deferred compensation obligation— 1 (593)— — 29,769 592  
Share-based compensation— — 12,568 — — — — 12,568 
Cumulative effect of accounting change— — — (678)— — — (678)
Net loss— — — (484,658)— — — (484,658)
Balance, October 3, 2020125,128,804 $1,252 $1,253,877 $(766,565)$(67,752)(27,285)$(522)$420,290 
See accompanying notes to consolidated financial statements.

6


CORNERSTONE BUILDING BRANDS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
October 2, 2021
(Unaudited)

NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The accompanying unaudited consolidated financial statements for Cornerstone Building Brands, Inc. (together with its subsidiaries, unless otherwise indicated, the “Company,” “Cornerstone Building Brands,” “we,” “us” or “our”) have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by generally accepted accounting principles (“GAAP”) for complete financial statements. In the opinion of management, the unaudited consolidated financial statements included herein contain all adjustments, which consist of normal recurring adjustments, necessary to fairly present the Company’s financial position, results of operations and cash flows for the periods indicated. Operating results for the period from January 1, 2021 through October 2, 2021 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2021.
 Certain reclassifications have been made to the prior period amounts in the consolidated financial statements to conform to the current presentation.
For additional information, refer to the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020 filed with the Securities and Exchange Commission (the “SEC”) on March 4, 2021.
Reporting Periods
The Company’s fiscal quarters are based on a four-four-five week calendar with periods ending on the Saturday of the last week in the quarter except that December 31st will always be the year-end date. Therefore, the financial results of certain fiscal quarters may not be comparable to prior fiscal quarters.
Restricted Cash
The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets that total the amounts shown in the consolidated statements of cash flows (in thousands):
 October 2,
2021
December 31,
2020
Cash and cash equivalents$677,187 $674,255 
Restricted cash(1)
2,211 6,223 
Total cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows$679,398 $680,478 
(1)Restricted cash primarily relates to escrow balances held for an outstanding earn-out agreement as of December 31, 2020 and indemnification agreements in both periods presented.
Accounts Receivables and Related Allowance
The Company reports accounts receivable net of an allowance for expected credit losses. Trade accounts receivable are the result of sales of vinyl windows, aluminum windows, vinyl siding, metal siding, injection molded products, metal building products, metal coating, and other products and services to customers throughout the United States and Canada and affiliated territories, including international builders who resell to end users. Sales are primarily denominated in U.S. dollars. Credit sales do not normally require a pledge of collateral; however, various types of liens may be filed to enhance the collection process and we require payment prior to shipment for certain international shipments.
The Company establishes provisions for expected credit losses based on the Company’s assessment of the collectability of amounts owed to us by our customers. Such provisions are included in selling, general and administrative expenses. In establishing these reserves, the Company considers changes in the financial position of a customer, age of the accounts receivable balances, availability of security, unusual macroeconomic conditions, lien rights and bond rights as well as disputes, if any, with our customers. Our allowance for credit losses reflects reserves for customer receivables to reduce receivables to amounts expected to be collected. Interest on delinquent accounts receivable is included in the trade accounts receivable balance and recognized as interest income when earned and collectability is reasonably assured. Uncollectible accounts are written off when a settlement is reached for an amount that is less than the outstanding historical balance, all collection efforts have been exhausted, and/or any legal action taken by the Company has concluded.
7


The following table represents the rollforward of the allowance for credit losses for the periods indicated (in thousands):
Nine Months Ended
October 2,
2021
October 3,
2020
Ending balance, prior period$13,313 $9,962 
Cumulative effect of accounting change(1)
 678 
Provision for expected credit losses2,289 3,762 
Amounts charged against allowance for credit losses, net of recoveries(268)(1,801)
Allowance for credit losses of acquired company at date of acquisition 810 
Divestitures(4,158) 
Ending balance$11,176 $13,411 
(1)Cumulative effect of accounting change reflects the modified retrospective effect of adopting ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.
Net Sales
The Company enters into contracts that pertain to products, which are accounted for as separate performance obligations and are typically one year or less in duration. Given the nature of the Company's sales arrangements, we are not required to exercise significant judgment in determining the timing for the satisfaction of performance obligations or the transaction price. Revenue is measured as the amount of consideration expected to be received in exchange for our products. Revenue is generally recognized when the product has shipped from our facility and control has transferred to the customer. For a portion of our business, when we process customer owned material, control is deemed to transfer to the customer as the processing is being completed.
The Company’s revenues are adjusted for variable consideration, which includes customer volume rebates and prompt payment discounts. The Company measures variable consideration by estimating expected outcomes using analysis and inputs based upon anticipated performance, historical data, and current and forecasted information. Customer returns are recorded as a reduction to sales on an actual basis throughout the year and also include an estimate at the end of each reporting period for future customer returns related to sales recorded prior to the end of the period. The Company generally estimates customer returns based upon the time lag that historically occurs between the sale date and the return date while also factoring in any new business conditions that might impact the historical analysis such as new product introduction. Measurement of variable consideration is reviewed by management periodically and revenue is adjusted accordingly. We do not have significant financing components. The Company recognizes installation revenue, primarily within the stone veneer business, over the period for which the stone is installed, which is typically a very short duration.
Shipping and handling activities performed by us are considered activities to fulfill the sales of our products. Amounts billed for shipping and handling are included in net sales, while costs incurred for shipping and handling are included in cost of sales.
In accordance with certain contractual arrangements, we receive payment from our customers in advance related to performance obligations that are to be satisfied in the future and recognize such payments as deferred revenue, primarily related to the Company’s weathertightness warranties (see Note 12 — Warranty).
A portion of the Company’s revenue, exclusively within the Commercial segment, includes multiple-element revenue arrangements due to multiple deliverables. Each deliverable is generally determined based on customer-specific manufacturing and delivery requirements. Because the separate deliverables have value to the customer on a stand-alone basis, they are typically considered separate units of accounting. A portion of the entire job order value is allocated to each unit of accounting. Revenue allocated to each deliverable is recognized upon shipment. The Company uses estimated selling price (“ESP”) based on underlying cost plus a reasonable margin to determine how to separate multiple-element revenue arrangements into separate units of accounting, and how to allocate the arrangement consideration among those separate units of accounting. The Company determines ESP based on normal pricing and discounting practices.
8


The following table presents disaggregated revenue disclosure details of net sales by segment (in thousands):
Three Months EndedNine Months Ended
October 2,
2021
October 3,
2020
October 2,
2021
October 3,
2020
Windows Net Sales Disaggregation:
Vinyl windows$562,097 $465,472 $1,607,704 $1,283,337 
Aluminum windows22,420 22,056 64,336 61,338 
Other11,969 13,786 31,453 33,364 
Total$596,486 $501,314 $1,703,493 $1,378,039 
Siding Net Sales Disaggregation:
Vinyl siding$182,019 $146,585 $508,121 $387,559 
Metal70,667 75,477 221,260 192,567 
Injection molded19,131 20,460 58,420 49,556 
Stone23,025 20,988 66,659 61,999 
Other products & services(1)
63,028 58,388 181,988 156,509 
Total$357,870 $321,898 $1,036,448 $848,190 
Commercial Net Sales Disaggregation:
Metal building products(2)
$395,869 $281,339 $1,014,663 $842,863 
Insulated metal panels(3)
32,934